On Tuesday, SEBI updated rules regarding unitholder nomination rights for Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InVITs). Previously, unitholders with significant ownership could nominate a director to the board but were restricted if they had nomination rights as shareholders or lenders. The new rule, effective immediately, adds an exception for unitholders with rights due to conditions under the Sebi (Debenture Trustees) Regulations, 1993. This change aims to clarify and ease the process of appointing directors. Investors should note the enhanced clarity and potential impact on governance in REITs and InVITs.
