ISLAMABAD, July 26: The Securities and Exchange Commission of Pakistan (SECP) has sought comments from all the stakeholders and public on amendments recently introduced to the Real Estate Investment Trusts (REITs).
The recent amendments made to part VIII-A of the Companies Ordinance 1984 through the Finance Bill 2007 empowers the SECP to make regulations in relation to section 282 of the ordinance.
Accordingly, in exercise of the powers conferred by section 282B (2) of the Ordinance, Real Estate Investment Trusts (REITs) Regulations 2007 have been drafted and placed on the commission’s website to elicit public opinion, states an official announcement issued by the commission here on Thursday.
These draft regulations are the product of two years of concerted effort by the commission and the concerned stakeholders including, representatives of federal and provincial governments, valuers, real estate developers, overseas investors, contractors, designers and other market entities.
The statement stated that the SECP continuously strived to offer financial products to the investors which were tailored to suit the prevailing market conditions and any future contingencies.
The most recent development in this regard was the introduction of Real Estate Investment Trusts (REITs).
According to the SECP spokesman, Pakistan would be the first emerging market to initiate REITs. The objective of the REITs was anchored around the concept to introduce an alternative asset class with the purpose to add depth to the capital market and provide transparency to real estate sector in the form of comprehensive disclosures and accountability through a trust mechanism engrained in the REITs Regulations.
He says REITs have the potential to become a valuable addition to both the financial markets and the real estate sector in Pakistan through a bond of unique product features with the benefits of mutual funds and the property market.
REITs will provide the investors an opportunity to invest in real estate, through a pooled investment vehicle, managed professionally by fund managers (licensed REIT Management Companies), he added.
He said SECP was eager to receive comments and suggestions on the draft REIT Regulations.