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TMI BlogRelaxation from certain provisions for units allotted to an employee benefit trust for the purpose of a unit based employee benefit scheme, Alignment of timelines for making distribution by InvITs and Format of Quarterly Report and Compliance Certificate – Infrastructure Investment Trusts (InvITs)X X X X Extracts X X X X X X X X Extracts X X X X ..... scheme, Alignment of timelines for making distribution by InvITs and Format of Quarterly Report and Compliance Certificate Infrastructure Investment Trusts (InvITs) Relaxation from certain provisions for units allotted to an employee benefit trust for the purpose of a unit based employee benefit scheme 1. SEBI (Infrastructure Investment Trusts) Regulations, 2014 ( InvIT Regulations ) were amended on July 13, 2024 to provide a framework for unit based employee benefit ( UBEB ) scheme. The framework for UBEB scheme, inter-alia, provides that issuance of units to the employee benefit trust shall be based on the guidelines for preferential issue of units, including pricing guidelines as specified by the Board. 2. Chapter 7 of the Master Circula ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e employee benefit trust and the subsequent transfer of units to the employees as per the terms of the UBEB scheme, it is proposed that the aforementioned lock-in and allotment related restrictions shall not apply to the employee benefit trust. Accordingly, in Chapter 7 of the Master Circular 3.1. a new paragraph 7.6.4. is inserted as under: The lock-in requirement mentioned at paragraph 7.6.2. and 7.6.3. above shall not be applicable in case of units allotted to an employee benefit trust for the purpose of a unit based employee benefit scheme in compliance with Chapter IVB of the InvIT Regulations. 3.2. the following proviso is inserted under paragraph 7.7.1.: Provided further that this restriction on preferential issue of units shall not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lish it on its website. Any future changes to this format shall be made by BIA in consultation with SEBI, prior to implementation. 7. All InvITs shall follow the aforementioned format specified by BIA to ensure compliance with Regulation 10(18)(a) and Regulation 9(3) of the InvIT Regulations . Alignment of timelines for making distribution by InvITs 8. InvIT Regulations were amended on September 27, 2024 to revise the timelines for distributions made by InvITs w.e.f. November 27, 2024. Chapter 23 and Annexure 16 of the Master Circular for InvITs dated May 15, 2024 related to procedural framework for dealing with unclaimed amounts lying with InvITs also provides reference to the timelines for making distributions. Accordingly, Master Circula ..... X X X X Extracts X X X X X X X X Extracts X X X X
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