SEBI Grants Lock-in and Allotment Exemptions for InvITs and REITs in Employee Benefit Schemes
Moneylife Digital Team 14 November 2024
Markets regulator Securities and Exchange Board of India (SEBI ) has exempted infrastructure investment trusts (InvITs) and real estate investment trusts (REITs) from lock-in and allotment restrictions while issuing units to an employee benefit trust under unit-based employee benefit (UBEB) schemes. 
 
In two separate circulars, SEBI explained that to promote ease of doing business, the lock-in and allotment-related restrictions would not apply to the employee benefit trust. This change is intended to facilitate the trust's acquisition of units and their subsequent transfer to employees, as per the UBEB scheme's terms, it added.
 
In addition, the market regulator has introduced a standard quarterly reporting format. It has mandated that the Bharat InvITs Association and Indian REITs Association adopt a uniform structure for quarterly reports and compliance certificates. 
 
“These updates aim to ensure that all InvITs and REITs follow the same reporting format, which will be publicly accessible on the associations' websites. These measures are designed to enhance operational efficiency, transparency, and consistency within the InvIT and REIT sectors. REITs offer investors the opportunity to invest in commercial real estate, while InvITs provide access to a portfolio of infrastructure assets,” SEBI says.
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