The Securities and Exchange Board of India (SEBI), on November 04, 2024, issued a notification related to Relaxation from certain provisions for units allotted to an employee benefit trust for the purpose of a unit-based employee benefit scheme, Alignment of timelines for making distribution by REITs and Format of Quarterly Report and Compliance Certificate - Real Estate Investment Trusts (REITs).
SEBI has amended guidelines for Real Estate Investment Trusts (REITs) regarding the Unit-Based Employee Benefit (UBEB) scheme and other operational frameworks:
UBEB Scheme Adjustments:
Amendments to SEBI’s REIT Regulations (July 2024) allow the issuance of units to employee benefit trusts based on guidelines for preferential issues, excluding certain lock-in and allotment restrictions.
Specifically, units allotted to employee benefit trusts under the UBEB scheme are now exempt from general lock-in requirements and some restrictions on preferential issue eligibility.
Standardized Reporting:
SEBI mandates that REITs submit quarterly reports and compliance certificates in a standardized format, set by the Indian REITs Association (IRA) in consultation with SEBI. This aims to ensure uniform reporting across the industry.
Aligned Distribution Timelines:
Effective November 27, 2024, REIT distribution timelines have been revised. Any unclaimed distribution funds must be transferred to an “Unpaid Distribution Account” in compliance with the new schedule.
This circular takes effect immediately and aims to streamline REIT operations and regulatory compliance.
[Notification No. SEBI/HO/DDHS/DDHS-PoD-2/P/CIR/2024/158]
