SECP seeks public feedback on REIT regulations amendments

January 30, 2025 (MLN): The Securities and Exchange Commission of Pakistan (SECP) has issued notification for public consultations on the proposed amendments to the Real Estate Investment Trust (REIT) Regulations, 2022 (REIT Regulations).

The draft amendments follow an extensive consultation process with key stakeholders, including REIT Management Companies (RMCs), trustees, the banking sector, mutual funds, legal firms, and consultants.

Initial feedback was collected to pinpoint areas for improvement in the REIT Regulations, according to the press release issued today.

The insights were consolidated into a detailed Consultation Paper titled “Areas of Improvement in the REIT Regulations, 2022”, which was published to invite further feedback.

In-person consultations were subsequently held in Karachi and Lahore, where the feedback was discussed in-depth, ensuring the proposals were refined based on a consensus-driven approach.

The SECP has now notified the draft amendments for comments before these become effective.

These amendments focus on streamlining procedures for the registration of trust deeds and REIT schemes while establishing clearer timelines for transferring real estate or shares of Special Purpose Vehicles (SPVs) under the REIT scheme.

They also aim to promote the early listing of REIT schemes to enhance their presence as a capital market asset class.

Additionally, the amendments aim to strengthen the roles and responsibilities of the RMC and trustee, address regulatory arbitrage across different REIT structures, and enhance adherence to the Shariah governance framework.

The SECP is committed to a robust and transparent consultation process, ensuring stakeholders have ample opportunity to contribute during the regulatory review. 

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