Indian capital markets regulator (SEBI) approved real estate investment trusts (REITs) and infrastructure investment trusts (InvITs) framework (India’s very own framework for Business Trusts). This offers a new asset class for investors as also a new source of financing to India’s real estate and infrastructure industry.
Broad scope of trustee services envisaged for business trusts:
- Structuring from legal and taxation perspective
- Transfer of assets and listing assistance
- Setting up of operational framework and common platform for participants including sponsor(/s), investor(/s), investment manager, principal value, project manager and stock exchange
- Oversight of activities of the business trust under regulatory framework
- Legal due diligence on assets and monitoring the flow of funds
- Convening meetings of unit holders and maintenance of records
- Investor relationship activity including review of unit holder’s complaints and their redressal
- Regulatory compliance and reporting
- Annual administration during the life of the trust
