SEBI proposes governance reforms for REITs and InvITs, including 75% voting thresholds, dissenting unitholder rights, and sponsor exit rules.
Enhancing Governance in Real Estate and Infrastructure Funds
SEBI has proposed a suite of Ease of Doing Business (EODB) reforms for Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs). The package includes raising voting thresholds to 75% for material decisions, strengthening exit rights for dissenting unitholders, and clarifying sponsor divestment norms.
Additional proposals cover public holding requirements, common platform integration for trading, and standardised disclosure formats. These measures aim to boost investor confidence and market efficiency in the REITs and InvITs sector, which has seen growing retail participation.
Legal teams managing REIT/InvIT structures must review trust deeds and offer documents for alignment with proposed standards. The higher voting threshold may affect control dynamics, requiring updated shareholder and sponsor agreements.
Citations
- SEBI Discussion Paper on REITs and InvITs Reforms, 2026
