The Securities and Exchange Board of India (“SEBI”), in exercise of powers conferred under Section 11(1) of Chapter IV of the Securities and Exchange Board of India Act, 1992, vide Circular No. SEBI/HO/DDHS/DDHS-PoD-2/P/CIR/2025/88,[1] dated June 12, 2025, has implemented further measures to strengthen investor protection and transparency in the Real Estate Investment Trusts (“REITs”) framework. All provisions outlined in this circular shall be effective immediately (“Circular”).
This development builds upon earlier regulatory directives issued through Circular dated November 26, 2021, now consolidated under Chapter 14 of the Master Circular for REITs issued on May 15, 2024.
Key Highlights:
- Investor Charter for REITs Introduced: As part of SEBI’s continuing efforts to enhance financial consumer protection, promote financial inclusion, and support investor education, SEBI has formally introduced an Investor Charter specifically for REITs, as provided in Annexure A of the Circular. This initiative aligns with recent developments in the securities market, including the introduction of the Online Dispute Resolution (ODR) platform and the upgraded SCORES 2.0 grievance redressal system.
- Basis and Consultation: The move follows consultation with the Hybrid Securities Advisory Committee (HySAC) and seeks to institutionalize and clearly communicate the rights, responsibilities, expected services, and grievance mechanisms available to investors in REITs.
- Transparency in Complaint Redressal: To ensure transparency in the investor grievance redressal process, all registered REITs are required to disclose the following data on their respective websites:
- Details of complaints received and resolved.Categorized and consolidated complaint data.Monthly updates to be published by the 7th day of the succeeding month, in the prescribed format provided in Annexure B of the Circular.
- Disclosure Obligations for IRA and REITs:
- Investment Real Estate Advisors (IRAs) are required to publish the Investor Charter on their websites and mobile applications (if any) and display it prominently at their offices.REITs must take proactive steps to bring the Investor Charter to the attention of their investors by:Hosting it on websites and mobile applications (if available).Displaying it at prominent locations within office premises.Circulating copies via email or physical correspondence.
[1]https://www.sebi.gov.in/legal/circulars/jun-2025/investor-charter-real-estate-investment-trusts-reits-_94555.html