According to the draft regulations, an RMC shall devise dividend policy in the best interest of unit holders. RMC means a duly incorporated public limited company which has been licensed by the Commission under the rules to undertake REIT management services. The dividend policy shall be in consonance with the provision of applicable tax law.
The dividend policy shall be stated in the trust deed and offering documents of the REIT scheme. Dividends shall be paid in cash, the SECP added. Earlier, prior to the proposed amendments, Real Estate Investment Trust Regulations, 2015 said that the dividends shall be paid in cash unless dividend distribution in form of bonus units is allowed by the Commission under the regulations, sources said.
The SECP has also proposed to omit regulation 19 of the Real Estate Investment Trust Regulations, 2015. Under section 19 (Power of the Commission to cause valuation), the Commission, if it deems necessary, may cause another valuation of any REIT assets by a valuer appointed by the Commission. Fees and costs incurred on valuation after the launch of the REIT scheme shall be paid by the REIT scheme, it added.