ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has proposed new regulatory reforms to the investment mechanism of Real Estate Investment Trusts (REITs).
- Bringing in new real estate investment products
- Facilitating the launch of various schemes by real estate investment trust management companies
- Implementing a reporting-based system
On the comprehensive concept paper for the new regulatory framework, which is available on the commission’s official website, SECP has requested feedback.
An overview of the real estate investment trust industry and potential regulatory changes were also provided in the paper.
It should be noted that the REIT industry is relatively undeveloped in Pakistan. However, in Pakistan over the past two years, ten new REIT schemes have been developed.
REITs now fall under a separate category on the trading board of the Pakistan Stock Exchange (PSX), thanks to SECP.