News sources said on August 23 that the Securities and Exchange Commission of Pakistan (SECP) has proposed new changes to the rules for investing in Real Estate Investment Trusts (REITs).
In a paper called “Review of Landscape and Revamping Framework,” which was just released, the commission proposed new rules for managing the new REIT companies, their shares, and their assets. Besides this, the new rules would be responsible for:
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Putting out new products for investing in real estate
Making it easier for companies that run real estate investment trusts to start different plans
Moving toward a system that is based on reports
Read: Four new REITs are likely to come out soon.
SECP has asked for feedback on the detailed concept paper about the new regulatory framework, which can be found on the official website of the commission. The paper gives an overview of the business of real estate investment trusts and possible changes to the rules.
It’s important to note that the Pakistani market is very new to the REIT business. In Pakistan, however, ten new REIT plans have been made in the last two years. REITs now have their own category on the Pakistan Stock Exchange (PSX) trading board. This was done recently by SECP.