Securities and Exchange Board of India (SEBI) has issued circulars for Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) on November 13, 2024, effective immediately, outlining the following amendments:
- The lock-in restrictions and restrictions in case of allotment of units, as prescribed under the guidelines for preferential issue of units shall not be applicable in case of allotment of units to employee benefit trust under unit-based employee benefit scheme.
- SEBI has authorized Indian REITs Association (for REITs) and Bharat InvITs Association (for InvITs) to prescribe formats for compliance certificate under Regulation 9(3) and quarterly compliance report under Regulation 10(18) of respective regulations to be submitted by the Manager/ Investment Manager with the REIT/ InvIT Trustee. Once prescribed, REITs and InvITs shall have to comply with the same.
- With regard to the amendments made to the distribution timelines on September 27, 2024, SEBI has revised the language in the paragraphs concerning the timeline for the transfer of unclaimed/ unpaid distributions by Manager/ Investment Manager, with a view to align the same with the respective regulations.
Below are the links to the Circulars for quick reference –