ISLAMABAD: The Securities and Exchange Commission of Pakistan has published a Consu­ltation Paper to invite feedback and suggestions on potential improvements in the Real Estate Investment Trust (Reit) Regulations 2022.

The paper is part of SECP’s efforts to modernise the regulatory ecosystem, catering to the evolving Reit landscape within the country and aligning the Reit regulations with international benchmarks. The SECP conducted the analysis after consulting with relevant stakeholders, including Reit Mana­gement Companies (RMCs) and trustees.

Potential areas where refinements have been proposed include streamlining the procedure for registering a trust deed and Reit scheme, rationalising the timelines for transferring real estate/shares of SPV in the name of a Reit scheme and expediting the listing of REIT Schemes.

The other improvements include the overall design to make REITs a vibrant capital market asset class. Reasons for identifying each potential area have also been provided to facilitate stakeholders’ feedback sharing.

The SECP has also invited suggestions for enhancing the functions of RMC and trustee, mitigating regulatory arbitrage between different Reit structures, and implementing measures to improve adherence to the Shariah governance framework.

The commission has also asked the stakeholders to submit their feedback as well assuggestions on the potential improvement areas along with any other suggestions at it’s website.

Published in Dawn, June 25th, 2024