SEBI Amends Regulations for REITs and InvITs to Introduce Unit-Based Employee Benefit Schemes

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.