Solution

To boost corporate governance norms, SEBI has notified rules introducing special rights to unitholders of REITs who can now nominate representatives on the boards.    Also, the regulator has introduced the concept of a self-sponsored real estate investment trust (REIT).  Further, the principles of stewardship code would apply to members, nominated by the unitholders, on the board of directors of investment managers of REIT.    Unitholders holding not less than 10 per cent of the total outstanding units of the REIT, either individually or collectively, shall be entitled to nominate one director on the board of directors of the manager.    The sponsor of InvIT/ REIT would be required to hold a certain minimum unitholding on a reducing scale for the entire life of the InvIT/ REIT &  will collectively hold at least 15 per cent of the total units of the REIT, for three years from the date of listing of units in the initial offer.     Any holding by the sponsor exceeding 15 per cent will be held for at least one year from the date of listing of units issued in the initial offer.