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Corporate Laws Central Ministry of Finance Securities and Exchange Board of India Act, 1992

Securities and Exchange Board of India (Real Estate Investment Trusts) (Amendment) Regulations, 2025

22-Apr-2025 | F. No. SEBI/LAD-NRO/GN/2025/241

Securities and Exchange Board of India (SEBI) has notified the SEBI (Real Estate Investment Trusts) (Amendment) Regulations, 2025, effective from 22nd April, 2025.

Key Highlights:
1. Trustees are now mandated to comply with core fiduciary principles, including transparency, accountability, due diligence, and regulatory compliance and act impartially and prioritize the interests of unitholders, ensuring effective oversight of the manager and REIT operations, while upholding high governance standards.
2. REITs (directly or through HoldCos/SPVs) may now invest in infrastructure assets, provided the investment is intended to earn fixed rental income through leasing and the REIT assumes no operational risks or rewards associated with the asset.
3. A new Schedule IIIA has been inserted requiring mandatory disclosures in the Scheme Offer Document for Small and Medium REITs (SM REITs).
4. In Regulation 26ZD which is regarding the allotment and listing of? Small And Medium REIT (SM REIT), the new sub-regulation has been inserted regarding the holding of units of the scheme of SM REIT by any person other than investment company, for a period not less than one year from the date of listing of the
units.

Kindly refer to the attached document for more information.

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