Islamabad: The Securities and Exchange Commission of Pakistan (SECP) has revamped the regulations on Real Estate Investment Trusts (REIT), a news source reported. A number of amendments have been introduced to the Real Estate Investment Trusts Regulations, 2015. The new REIT regulations were launched in April 2015.
The amendments are targeted to regularise and formalise the real estate industry and document the economy. The amendments were approved by SECP after a review of the regulations. Under the amendments, regulations and requirements have been simplified and greater protection has been provided to unit holders.
The amendments have introduced the concept of private investors along with eligibility criteria to invest in REITs. A grace period for mandatory listing has also been added. Now it is also required that two separate evaluators should value the property at the time of transfer of real estate to REIT scheme.
REITs management companies, Mutual Funds Association of Pakistan and other stakeholders were extensively consulted for the amendments in the REIT regulations.
