SEBI Introduces Investor Charters for InvITs and REITs

The Securities and Exchange Board of India (SEBI) vide two separate circulars dated June 12, 2025 introduced investor charters for real estate investments trusts (REITs) and infrastructure investment trusts (InvITs) (Circulars). The aim is to enhance financial consumer protection, financial inclusion, and financial literacy. Accordingly, REITs and InvITs have been directed to disseminate the investor charters on their website.

Key highlights of the investor charters are as follows:

• Vision and mission
  The vision statement focuses on developing transparent, efficient, and reliable investment opportunities while protecting interests of unitholders. The mission statement focuses on developing a globally competitive industry with good corporate governance and facilitation of informed investment decision making.
• Description of activities and services
  The charters outline the core functions of REITs and InvITs including raising funds from investors through issuance of units, operating under a structured framework with sponsor, trustee, and managers, and integrating environmental, social and governance factors into their investment. REITs and InvITs are further required to distribute at least 90% of the net distributable cash flows to the unitholders and to provide periodic disclosures and reports (such as quarterly and half-yearly reports).

The charters outline the specific services provided, the frequency of required reports, and the associated timelines for each service. For example, if the minimum subscription amount is not achieved, the subscription funds must be refunded within 15 days of the closing date, and REITs are required to disclose the unitholding pattern within 21 days after the end of each quarter. It further simplifies the timelines applicable for disclosure requirements (annual reports, half-yearly reports, valuation reports) for the investors.

• Grievance redressal mechanism and do’s and don’ts
  SEBI’s new investor charters also establish a three-tiered grievance resolution system for REITs and InvITs. Investors should first contact the trust / trust’s compliance officer or investor relations officer. If unresolved, complaints can be escalated to SEBI’s SCORES portal or the new Online Dispute Resolution platform. Physical complaints may also be sent to SEBI’s Office of Investor Assistance.

Further, investors should always verify that the trust is registered with SEBI, carefully review all offer documents to understand the terms and risks involved, and ensure their personal information is regularly updated with the trust. It is also important to monitor all communications from the trust and stay informed about any regulatory changes or tax implications that may affect their investment.

Further, all REITs and InvITs have to disclose complaints or issues against them and redressal thereof on their respective websites by the 7th of each succeeding month.

Conclusion:

These investor charters establish standardized frameworks for investor rights, responsibilities, and grievance redressal mechanisms for both investment vehicles. They reflect SEBI’s ongoing commitment to strengthening investor protection.