ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has announced amendments to the Real Estate Investment Trust (REIT) Regulations, 2022, aimed at improving the governance, transparency, and operational efficiency of REIT schemes in Pakistan. The revised regulations focus on streamlining processes, strengthening oversight, and fostering earlier listings of REIT schemes to enhance their development as a capital market asset class.
Key amendments introduced by the SECP include clearer timelines for transferring real estate and shares of special purpose vehicles (SPVs). These changes are designed to promote the early listing of REIT schemes, increasing their visibility in the market and attracting more investment. The regulatory updates also strengthen the roles of REIT Management Companies (RMCs) and trustees, ensuring better governance and reducing regulatory arbitrage across different REIT structures.
In a bid to align with Shariah governance frameworks, the SECP has refined the definition of real estate, distinguishing between passive and active components. Additionally, the regulations now include income and asset test requirements, consistent with international best practices, to ensure that REIT schemes primarily invest in and generate income from real estate assets.
The amendments followed a comprehensive stakeholder consultation process, which included meetings with RMCs, trustees, banks, mutual funds, law firms, and consultants. The SECP emphasised that the revised regulations are expected to boost investor confidence and encourage the growth of REITs as a long-term, stable investment option in Pakistan’s capital markets.
The amended REIT Regulations are now available on the SECP’s official website, marking a significant step toward strengthening Pakistan’s real estate investment framework.
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