MITCON Credensia acts as trustee for SEBI-registered Real Estate Investment Trusts, providing independent oversight of fund operations under SEBI (Real Estate Investment Trusts) Regulations, 2014.
Our REIT trustee services include:
- Holding REIT assets in fiduciary capacity
- Approval of related-party transactions
- Monitoring of investment manager performance
- Compliance oversight with SEBI REIT regulations
- Independent valuation oversight
- Distribution policy compliance (90% mandatory distribution)
- Unit holder grievance redressal
- Coordination with auditors, valuers, and rating agencies
Scope of Service
- Vetting of the REIT trust deed, investment management agreement and offer documents
- Holding the REIT's assets in trust for the benefit of unit-holders
- Oversight of the Manager to ensure compliance with the SEBI (REIT) Regulations, 2014, trust deed and offer documents
- Monitoring of acquisitions, divestments, related-party transactions and leverage limits
- Review of valuation reports from the Valuer and ensuring required valuations are obtained
- Verification of timely distribution to unit-holders as per the regulations
- Convening meetings of unit-holders and acting on their resolutions
- Filing of trustee certifications and acting on unit-holder grievances as per the regulatory framework
Frequently Asked Questions
What is a Real Estate Investment Trust (REIT)?
A REIT is a SEBI-regulated trust that owns, operates or finances income-producing real estate and is required to distribute the majority of its net distributable cash flow to unit-holders. REITs in India are governed by the SEBI (Real Estate Investment Trusts) Regulations, 2014.
Who are the parties in a REIT structure?
The Sponsor (who sets up the REIT), the Manager (who manages the assets), the Trustee (who holds the assets in trust for unit-holders), the Valuer, the Auditor, and the Unit-holders.
What is the trustee's role in a REIT?
The trustee holds the REIT's assets in trust for the unit-holders, oversees the Manager's compliance with the SEBI REIT Regulations and trust deed, monitors related-party transactions, reviews valuations, and ensures distributions are made as required.
How are unit-holder distributions monitored?
SEBI requires REITs to distribute a minimum percentage of their net distributable cash flow to unit-holders at prescribed intervals. The trustee verifies that the Manager makes these distributions correctly and on time.
What are the leverage limits for a REIT?
REITs are subject to SEBI-prescribed leverage limits as a percentage of the value of REIT assets, with additional requirements applicable when leverage crosses defined thresholds. The trustee monitors compliance with these limits.
How are related-party transactions handled?
Related-party transactions must be on arm's-length terms with disclosures and unit-holder approvals as prescribed by the SEBI REIT Regulations. The trustee independently reviews these transactions.
What documents are required to appoint MITCON Credentia as REIT Trustee?
The REIT trust deed, investment management agreement, offer documents, SEBI registration documents, and KYC of the Sponsor and Manager.
How does MITCON Credentia add value as REIT Trustee?
Through experienced REIT operations personnel, structured oversight of the Manager, prompt regulatory filings, transparent reporting to unit-holders, and a solution-oriented approach to ongoing administration.
Have questions about Trustee for REITs?
Our team can walk you through structuring, fee arrangements, and compliance requirements.
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