March 26, 2023 (MLN): The State Bank of Pakistan (SBP) on Friday decided to allow general permission to REIT Management Companies (RMC) to issue their units through private placements and transfer such units to non-residents, the circular issued by the SBP revealed while addressing to all the Presidents/Chief Executives of all Authorized Dealers (ADs) in Foreign Exchange.
This is in addition to the existing provisions that allow non-residents to invest in REIT Schemes listed on Stock Exchange and through new Public Offers
The move is aimed at further facilitating foreign investment in REIT Schemes in the country.
Accordingly, the Foreign Exchange Manual has been updated with new provisions to replace the existing ones related to the issuance and transfer of units of private funds, REIT funds, and shares of companies.
Designated ADs will allow the remittance of disinvestment proceeds due to the maturity of units of funds or revocation of REIT funds upon submission and review of certain documents.
The ADs are advised to bring the above amendments to the notice of all their constituents for meticulous compliance, the circular read.
