It could be observed from all the actions taken by the Government that it is ensuring that while the country is struggling with the pandemic, the businesses go on smoothly. Previously, the regulator, SEBI had allowed postponement in the time-limit for the submissions required to be done by all the REITs and Invits.
However, announcing by way of circular on July 1, 2020, that the regulator has further extended the deadlines for submitting the required documents and fulfilling requisite compliances for the Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InViTs) for the financial year 19-20 ended March 31, by further one month exceeding the last deadline given by the SEBI in March.
The regulator SEBI has now eased further the deadlines for fulfilling compliances for the administration of investment vehicles i.e. REITs and InviTs for a month after taking reasonable notes from the surroundings as an outcome of the global pandemic.
What do you mean by REITs?
Real estate investment trusts (REITs) and INVITs are primarily investment vehicle companies that possess, operate, or finance, income-generating sector of the real estate. It has a structure similar to that of the mutual funds, having a pool of abundant investors with capital.
Such entities are primarily known as investment vehicles and allow individual investors to receive higher rates of dividends by making investments in real estate without having to purchase, finance, or manage any property.
Criteria to qualify as REITs-
To succeed as a REITs or Invit, the basis of the criteria for the company shall be to qualify the Internal Revenue Code (IRC).
Other than these, such entities should predominantly possess real estate long term income-generating and issue income to their shareholders.
Precisely, a company must obligate the following requirements to succeed as a REIT-
What compliances have been extended for a month later?
As per the norms prescribed by the SEBI, such entities are required to fulfill compliances such as-
It is the responsibility of a manager to submit documents like the annual report to the regulator and providing to all the of the REIT or INVITs investors taking regard of the activities of such investment vehicle from the closure of three months from the end of the financial year.
Such annual report must include details like-
Therefore, by giving such relaxations the securities regulator has given relaxed the burden on the InviTs and REITs to fulfill the compliances.
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