{"id":2986,"date":"2021-03-05T05:22:46","date_gmt":"2021-03-05T05:22:46","guid":{"rendered":"https:\/\/swaritadvisors.com\/blog\/?p=2986"},"modified":"2021-03-05T05:22:49","modified_gmt":"2021-03-05T05:22:49","slug":"extension-of-video-conferencing-facility-to-reits-and-invits-by-sebi","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/blog\/extension-of-video-conferencing-facility-to-reits-and-invits-by-sebi\/","title":{"rendered":"Extension of Video Conferencing Facility to REITs and InvITs by SEBI"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Recently, the Securities and Exchange Board of\nIndia, by way of the powers provided under the provisions of section 11 (1) of\nthe SEBI Act 1992, read with Rule 33 of REIT Regulation 2014 and Rule 33 of the\nInvIT Regulations 2014, has passed a Circular No SEBI\/ HO\/ DDHS\/ DDHS\/ CIR\/ P\/ 2021\/\n21, issued on 26.02.2021 regarding the Extension of Video Conferencing Facility\nto REITs and InvITs.<\/p>\n\n\n\n<p>In this learning blog, we will cover the concept and\nextension of Video Conferencing Facility to REITs and InvITs.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3a8f3a2599c\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3a8f3a2599c\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/swaritadvisors.com\/blog\/extension-of-video-conferencing-facility-to-reits-and-invits-by-sebi\/#Concept_of_SEBI\" title=\"Concept of SEBI\">Concept of SEBI<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/swaritadvisors.com\/blog\/extension-of-video-conferencing-facility-to-reits-and-invits-by-sebi\/#Concept_of_Real_Estate_Investment_Trusts\" title=\"Concept of Real Estate Investment Trusts\">Concept of Real Estate Investment Trusts<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/swaritadvisors.com\/blog\/extension-of-video-conferencing-facility-to-reits-and-invits-by-sebi\/#Concept_of_Infrastructure_Investment_Trusts\" title=\"Concept of Infrastructure Investment Trusts\">Concept of Infrastructure Investment Trusts<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/swaritadvisors.com\/blog\/extension-of-video-conferencing-facility-to-reits-and-invits-by-sebi\/#Reasons_for_the_Extension_of_Video_Conferencing_Facility_to_REITs_and_InvITs\" title=\"Reasons for the Extension of Video Conferencing Facility to REITs and\nInvITs\">Reasons for the Extension of Video Conferencing Facility to REITs and\nInvITs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/swaritadvisors.com\/blog\/extension-of-video-conferencing-facility-to-reits-and-invits-by-sebi\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/swaritadvisors.com\/blog\/extension-of-video-conferencing-facility-to-reits-and-invits-by-sebi\/#Official_Circular_Passed_by_SEBI\" title=\"Official Circular Passed by SEBI\">Official Circular Passed by SEBI<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Concept_of_SEBI\"><\/span>Concept of SEBI<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The acronym SEBI stands for the Securities and\nExchange Board of India, which is a statutory governing body entrusted with the\nresponsibility to regulate and administer the Indian Capital Markets. <\/p>\n\n\n\n<p>Further, the main objective of this regulatory body\nis to monitor and administer the securities market and to safeguard the\ninterests of the investors by enforcing required rules and regulations. That\nmeans the main reason behind the formation of SEBI was to curtail malpractices\nin the securities and capital market and to promote growth and development of\nthe said market.<\/p>\n\n\n\n<p>SEBI was established in the year 1992 under the provisions of the SEBI Act 1992 and is headquartered in Mumbai.<\/p>\n\n\n\n<p><strong>Also, Read:<\/strong> <mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/learning\/norms-of-buyback-of-shares-under-sebi\/\">All You need to know about Norms of Buyback of Shares under SEBI?<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Concept_of_Real_Estate_Investment_Trusts\"><\/span>Concept of Real Estate Investment Trusts<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Real Estate Investment Trusts or REITs mean\nthose companies or entities that own or finance income generating real estate\nacross a variety of property sectors. Further, these companies need to meet a\nnumber of requirements and conditions to become an REIT.<\/p>\n\n\n\n<p>Also, it shall be noted that most of the REITs\nnowadays trade on recognised stock exchanges and provide various benefits to\ntheir investors.<\/p>\n\n\n\n<p>To become an REIT or the real estate investment\ntrust in India, the applicant company needs to qualify the criteria as follows:<\/p>\n\n\n\n<ul><li>90% of the\nincome must be distributed as dividends to investors;<\/li><li>80% of the total\ninvestment must be used to generate revenue;<\/li><li>10% of the total\ninvestment needs to be utilised for construction purposes;<\/li><li>The company must\nhave Rs 500 crores as the Asset base;<\/li><li>The company\nneeds to update the NAVs (Net Asset Value) twice in a financial year;<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Concept_of_Infrastructure_Investment_Trusts\"><\/span>Concept of Infrastructure Investment Trusts<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Infrastructure Investment Trusts or InvITs are\nthe entities that work like a mutual fund and allows the direct investment of a\nsmall amount of money from the prospective institutional investors in the\ninfrastructure to earn income as ROI (Return of Investment).<\/p>\n\n\n\n<p>Further, InvITs are often termed as the modified\nversion of the Real Estate Investment Trusts and are made to deal with specific\nsituations of the infrastructure sector.<\/p>\n\n\n\n<p>Also, it shall be noted that the basic four\ncomponents of Infrastructure Investment Trusts are as follows:<\/p>\n\n\n\n<ul><li>Trustee;<\/li><li>Sponsor;<\/li><li>Investment\nManager;<\/li><li>Project Manager;<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Reasons_for_the_Extension_of_Video_Conferencing_Facility_to_REITs_and_InvITs\"><\/span>Reasons for the Extension of Video Conferencing Facility to REITs and\nInvITs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>SEBI by way of the Circular No SEBI\/ HO\/ DDHS\/ DDHS\/\nCIR\/ P\/2 020\/ 102, issued on 22.06.2020, together with Circular No SEBI\/ HO\/\nDDHS\/ DDHS\/ CIR\/ P\/ 2020\/ 201, issued on 08.10.2020, had permitted REITs and\nInvITs to hold its Annual General Meetings (AGMs) and other meetings of the\nUnit Holders through Video Conferencing (VC) or by Other Audio Video Means\n(OAVM) till 31.12.2020.<\/p>\n\n\n\n<p>However, various representations and requests were\nreceived by the SEBI to further extend the above mentioned facility of holding\nmeetings of the Unit Holders for some time in 2021.<\/p>\n\n\n\n<p>Also, it shall be noted that the Ministry of\nCorporate Affairs (<a href=\"http:\/\/www.mca.gov.in\/\">MCA<\/a>), by way of the\ncircular, issued on 31.12.2020 and 13.01.2021, had extended the relaxation of\nholding EGMs (Extraordinary General Meetings) till 30.06.2021 and AGMs and\nother meetings till sometime in the year 2021.<\/p>\n\n\n\n<p>Therefore, SEBI has decided the extension of Video\nConferencing Facility to REITs and InvITs. That means they can conduct the\nmeetings of unit holders, through VC or OAVM for the situations as follows:<\/p>\n\n\n\n<ul><li>Annual General\nMeetings of the unit holders, based on the provisions of Rule 22 (3) of the\nSEBI (Real Estate Investment Trusts) Regulations 2014 and Rule 22 (3) (a) of\nthe SEBI (Infrastructure Investment Trusts) Regulations 2014, which become due\nin the calendar year of 2021, to be conducted in this manner till 31.12.2021;<\/li><li>For any meeting\nother than the AGM (Annual General Meeting) of the unit holders till\n30.06.2021; <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In a nutshell, the main reason for which the SEBI\nhas decided the extension of video conferencing facility to REITs and InvITs is\nto be in consonance with the relaxation offered by the Ministry of Corporate\nAffairs.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Official_Circular_Passed_by_SEBI\"><\/span>Official Circular Passed by SEBI<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<a href=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/03\/Official-Circular-Passed-by-SEBI.pdf\" class=\"pdfemb-viewer\" style=\"\" data-width=\"max\" data-height=\"max\"  data-toolbar=\"bottom\" data-toolbar-fixed=\"off\">Official-Circular-Passed-by-SEBI<br\/><\/a>\n<p class=\"wp-block-pdfemb-pdf-embedder-viewer\"><\/p>\n\n\n\n<p><strong>Also, Read:<\/strong> <mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/learning\/sebi-guidelines-for-ipo-guidelines-for-making-public-offer-in-india\/\">SEBI Guidelines for IPO: Guidelines for Making Public Offer in India<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Recently, the Securities and Exchange Board of India, by way of the powers provided under the provisions of section 11 (1) of the SEBI Act 1992, read with Rule 33 of REIT Regulation 2014 and Rule 33 of the InvIT Regulations 2014, has passed a Circular No SEBI\/ HO\/ DDHS\/ DDHS\/ CIR\/ P\/ 2021\/ 21, [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":2988,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[50,64],"tags":[460],"acf":[],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/2986"}],"collection":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/comments?post=2986"}],"version-history":[{"count":3,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/2986\/revisions"}],"predecessor-version":[{"id":2991,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/2986\/revisions\/2991"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media\/2988"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media?parent=2986"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/categories?post=2986"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/tags?post=2986"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}