SEBI allows meetings through VC or other audio-visual means for REITs/InvITS unitholders

Circular no. SEBI/HO/DDHS/DDHS_Div2/P/CIR/2023/13 & 14, dated 12.01.2023

The SEBI has allowed investment managers of real estate investment trusts (REITs) and infrastructure investment trusts (InvITS) to conduct the meetings of unit holders through video conferencing or other audio-visual means (OAVM).

Regulation 22(3)(a) of SEBI (Infrastructure Investment Trusts) Regulations, 2014 provides that an annual meeting of all unitholders of REITs/InvITs shall be held not less than once a year within 120 days from the end of a financial year and the time between two meetings shall not exceed fifteen months. Further, this move would allow maximum participation of unitholders in the decision-making process & helps in better governance.

Some of the key requirements that must be complied with are as follows –

(a) The recorded transcript of the meeting held through Video Conferencing or Other Audio-Visual means shall be maintained in safe custody.

(b) Convenience of different persons positioned in different time zones shall be kept in mind by the Investment Manager of the InvIT before scheduling the meeting.

(c) The facility for joining the meeting shall be kept open at least fifteen minutes before the time scheduled to start the meeting and shall not be closed until the expiry of fifteen minutes after such scheduled time.

(d) Before the actual date of the meeting, the facility of remote e-voting shall be provided.

(e) Only those unit holders that are present in the meeting and have not cast their vote on resolutions through remote e-voting and are otherwise not barred from doing so, shall be allowed to vote through the e-voting system at the meeting.

(f) At least one independent director of the Manager/Investment Manager and the auditor or his/her authorized representative who is qualified to be the auditor shall attend such meeting.

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