Description

Second amendment to SEBI REIT regulations modifying definitions of 'public', quarterly reporting requirements, and valuation report submission timelines.

Summary

SEBI has issued the Securities and Exchange Board of India (Real Estate Investment Trusts) (Second Amendment) Regulations, 2025, which came into effect from the date of publication in the Official Gazette on September 2, 2025. This amendment modifies key definitions and reporting requirements for REITs.

Key Points

  • Revised definition of ‘public’ to exclude related parties of REITs, sponsors, and managers
  • Modified quarterly reporting timeline for REITs to align with SEBI’s prescribed timeframe for quarterly financial results
  • Updated valuation report submission requirements to trustees
  • Clarified provisions related to distribution of funds by holding companies

Regulatory Changes

  • Definition of ‘Public’: Enhanced definition excluding REIT sponsors, sponsor groups, and managers from the ‘public’ category, with provisions for qualified institutional buyers who have invested in offerings
  • Quarterly Reporting: Changed from fixed 30-day deadline to SEBI-prescribed timeframe for quarterly financial results submission
  • Valuation Reports: Aligned submission timing of valuation reports to trustees with stock exchange submission requirements under Regulation 21
  • Compliance Reporting: Enhanced requirements for compliance status reporting, specifically for Regulations 18, 19, and 20

Compliance Requirements

  • REITs must submit quarterly reports within SEBI-prescribed timeframes instead of the previous 30-day requirement
  • Valuation reports must be submitted to trustees simultaneously with stock exchange submissions
  • Enhanced disclosure of fund receipts, payments, compliance status, and performance reports
  • Updated reporting on under-construction properties progress

Important Dates

  • Effective Date: September 2, 2025 (date of publication in Official Gazette)
  • Quarterly Reporting: Timeline now aligned with SEBI’s prescribed deadlines for quarterly financial results

Impact Assessment

This amendment primarily affects REIT operational compliance and reporting procedures. The changes streamline reporting timelines and enhance transparency requirements. The revised definition of ‘public’ provides clearer boundaries for related party transactions and investor categorization, which should improve regulatory clarity for REIT operations.

Impact Justification

Regulatory amendment affecting REIT compliance and reporting requirements