The Securities and Exchange Commission of Pakistan (SECP) has issued a notification for public consultations on proposed amendments to the Real Estate Investment Trust (REIT) Regulations, 2022. These amendments are the result of an extensive consultation process involving key stakeholders, including REIT Management Companies (RMCs), trustees, the banking sector, mutual funds, legal firms, and consultants. Initial feedback was gathered to identify areas for improvement in the REIT framework.
A detailed Consultation Paper, titled “Areas of Improvement in the REIT Regulations, 2022,” was published to invite further input. In-person consultations were later held in Karachi and Lahore, where stakeholders engaged in discussions to refine proposals based on a consensus-driven approach. Following this process, the SECP has now released the draft amendments for public comments before they are finalized.
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The proposed changes aim to streamline procedures for the registration of trust deeds and REIT schemes, establish clearer timelines for transferring real estate or shares of Special Purpose Vehicles (SPVs) under the REIT structure, and encourage early listing of REIT schemes to strengthen their position as a capital market asset class.
Additionally, the amendments seek to reinforce the roles and responsibilities of RMCs and trustees, address regulatory arbitrage across different REIT structures, and enhance compliance with the Shariah governance framework.
