RIGHTS AND RESPONSIBILITIES OF TRUSTEE :
Regulation 9 prescribed the rights and responsibilities of a Trustee of a REIT. These are the discuss below:-
1. The Trustee shall hold the REIT assets in trust for the benefit of the unit holders.
2. The Trustee shall enter into an investment management agreement with the manager on behalf of the REIT.
3. The trustee shall oversee activities of the manager in the interest of the unit holders, and shall obtain compliance certificate from the manager in the form as may be specified on a quarterly basis.
4. The trustee shall ensure that the manager complies with the reporting and disclosures requirements in
these regulations and in case of any delay or discrepancy, require the manager to rectify the same on
an urgent basis.
5. The trustee shall review the transactions carried out between the manager and its associates and where the manager has advised that there may be a conflict of interest, shall obtain confirmation from a practising chartered accountant that such transaction is on arm’s length basis.
6. The trustee shall periodically review the status of unit holders’ complaints and their redressal undertaken by the manager.
7. The trustee shall make distributions and ensure that the manager makes timely declaration of distributions
to the unit holders.
8. The trustee may require the manager to set up such systems and submit such reports to the trustees, as may be necessary for effective monitoring of the performance and functioning of the REIT.
9. The trustee shall ensure that subscription amount is kept in a separate bank account in name of the REIT and is only utilized for adjustment against allotment of units or refund of money to the applicants till the time such units are listed.
10. The trustee shall ensure that the remuneration of the valuer is not linked to or based on the value of the asset being valued.
11. The trustee shall ensure that the manager convenes meetings of the unit holders in accordance with these regulations and oversee the voting by unit holders and declare outcome of the voting.
12. The trustee may take up with SEBI or with the designated stock exchange, any matter which has been
approved in an annual meeting or special meeting, if the matter requires such action.
13. The trustee shall obtain prior approval from the unit holders in accordance with these regulation and from SEBI in case of change in control of the manager.
14. The trustee and its associates shall not invest in units of the REIT in which it is designated as the trustee.
15. The trustee shall ensure that the activity of the REIT is being operated in accordance with the provisions of the trust deed, the offer document and if any discrepancy is noticed, shall inform the same to SEBI immediately in writing.
16. The trustee shall provide to SEBI and to the designated stock exchange such information as may be sought by SEBI or by the designated stock exchange pertaining to the activity of the REIT.
17. The trustee shall immediately inform to SEBI in case any act which is detrimental to the interest of the unit holders is noted.