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REITs in India - Some predictions for the next 24 months

  • Tenant-landlord dynamics are likely to change. In the short term, tenants may seek dispensation, moratoriums or discounts to their payment obligations, on the grounds of force majeure or otherwise. In the medium term, there will be an expectation from developers to increase spend on social wellness and hygiene infrastructure.
  • The forced experiment of remote working may become a norm for certain businesses and have an impact on the flexi-working policies of all businesses, one way or another. As a result, tenants may reassess their space utilisation requirements, and developers, their ability to offer IT infrastructure, which can enable seamless connectivity for their tenants.

Continue Reading REITs in India: Some predictions for the next 24 months (and beyond)

Tax implications on INVITs, REITs and its Unitholders under Finance Act 2020

As you are aware, the Finance Minister, Ms. Nirmala Sitharaman, presented the Union Budget 2020-2021 on February 1, 2020 and consequently, introduced the Finance Bill, 2020 (“Bill”) in the Lok Sabha. The Bill comprised the financial proposals, including taxation related proposals, to amend the provisions of the Income-tax Act, 1961 (“Income-tax Act”) for the financial year 2021. Subsequently, the Finance Minister and her team had several discussions with various stakeholders, who we understand made many representations, seeking changes in some of the proposals. Pursuant to this, amendments to the Bill were presented and the Bill, incorporating the amendments was passed by the parliament on March 26, 2020 and received the assent of the President of India on March 27, 2020. It has now been enacted as the Finance Act, 2020 (“Finance Act”).
Continue Reading UPDATE:  Tax implications on INVITs, REITs and its Unitholders under Finance Act 2020

 Post-Listing Frameworks for REITs

REIT IT RIGHT

An eight-part series covering the commercial and legal considerations of REIT listings in India. The previous parts can be accessed here – Part 1, Part 2, Part 3, Part 4 .

Investor protection forms the bedrock of securities laws frameworks around the world with securities regulators putting in place meticulous and stringent governance, reporting as well as compliance frameworks for listed entities. The Indian securities regulator  has also prescribed a labyrinthine set of laws for post-listing reporting and corporate governance compliances by listed companies.

In stark contrast, however, the present regulatory framework for Real Estate Investment Trusts (REITs) in India offers limited guidance on post-listing compliances by listed REITs, mandating few compliances (mainly in relation to financial reporting, annual and half-yearly disclosures and investor grievances) and remaining silent on the applicability of a vast number of other obligations (including in relation to prevention of insider trading, takeovers and acquisitions, open offers etc.) which are typically applicable to listed companies.
Continue Reading Part V – Post-Listing Frameworks for REITs – A Giant Jigsaw with many a Missing Piece