SEBI Amends Regulations for REITs and InvITs to Introduce Unit-Based Employee Benefit Schemes
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Overview of SEBI's Amendments
The Securities and Exchange Board of India (SEBI) has issued two notifications aimed at enhancing the governance of Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs). Among the significant changes are updates to allow the introduction of unit-based employee benefit schemes.
Unit-Based Employee Benefit Scheme
- The scheme is designed similarly to employee unit option schemes.
- Investment managers can now grant unit options to employees.
- The scheme is facilitated through an employee benefit trust.
Conclusion
These amendments by SEBI highlight an essential shift towards integrating employee interests with investment strategies. This move is expected to enhance engagement and contribute positively to company performance.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.