Regulation 17C - Manner of receiving units by the employee benefit trust - Securities and Exchange Board of India (Real Estate Investment Trusts) Regulations, 2014

1 [Manner of receiving units by the employee benefit trust. 17C. (1) The employee benefit trust may receive units of the REIT in the following manner for the purpose of offering unit based employee benefit scheme: (a) The manager may receive the units of REIT in lieu of management fees, through the employee benefit trust, only for the limited purpose of providing unit based employee benefit on such units; Explanation. For the above purpose, the manager may take full or part of the management fees in the form of units of REIT. (b) A shareholder of manager may transfer full or part of the units of REIT held by it to the employee benefit trust; Provided that in case a sponsor is also a shareholder of the manager, then sponsor group and associate of the sponsor may also transfer full or part of the units held by them to the employee benefit trust; (c) The manager may transfer full or part of the units of REIT held by it to the employee benefit trust; Explanation. For the purpose of clauses (b) and (c), any transfer of units to the employee benefit trust shall be irrevocable and without any consideration in return i.e. shall constitute a gift to the employee benefit trust. (2) Subordinate units shall not be eligible for being transferred to the employee benefit trust or being made part of a unit based employee benefit scheme. (3) The cash accumulated by the employee benefit trust on account of distributions received on units of the REIT held by such trust, income earned on the assets held by the employee benefit trust and receipt of exercise price from the employees of the manager on exercise of options, may be used by the employee benefit trust for acquiring units of the REIT either from the secondary market or during any fresh issuance of units by the REIT only for the purpose of using such units for unit based employee benefit scheme. (4) The employee benefit trust may subscribe to the units of the REIT subject to compliance with the minimum lot for primary market transaction specified under these regulations. ] *************** NOTES:- 1. Inserted vide Notification No. SEBI/LAD-NRO/GN/2024/193 dated 09-07-2024