In a move to create ownership and give a sense of belongingness, among the employees of Investment Manager of InvITs and Manager of REITs. Before, this SEBI has issued a consultation paper on framework for issuance of Units Based Employee Benefits (UBEB) on December, 09th 2023. The said consultation paper, inter-alia, invited public comments on the framework.
Following this, SEBI approved amendments to the SEBI (Infrastructure Investment Trusts) Regulations, 2014, and SEBI (Real Estate Investment Trusts) Regulations, 2014, on April 30, 2024, to establish a framework for UBEB schemes for employees of InvIT and REIT managers.
SEBI further through notification dated July 09, 2024, notified the SEBI (Real Estate Investment Trusts) (Second Amendment) Regulations, 2024 and SEBI (Infrastructure Investment Trusts) (Second Amendment) Regulations, 2024 which has come into force on the date of publication in the Official Gazette vide this notification.
SEBI has brought out the framework for UBEB and inserted “Chapter IVB – Framework for Unit Based Employee Benefit Scheme” in the SEBI (Infrastructure Investment Trusts) Regulations, 2014 and “Chapter IVA – Framework for Unit Based Employee Benefit Scheme” in the SEBI (Real Estate Investment Trusts) Regulations, 2014.
This framework outlines the implementation process of UBEB through an Employee Benefit Trust (EB Trust), the receipt of units by Trust, and the allotment of units by REITs and InvITs.
The detailed framework on REITs Regulation can be read on : Click here
The detailed framework on INVITs Regulation can be read on: Click here
