Sebi Exempts InvITs and REITs from Lock-In Restrictions

Markets regulator Sebi has exempted InvITs and REITs from lock-in and allotment restrictions when issuing units to employee benefit trusts. This move aims to facilitate easier acquisition and distribution of units to employees, boosting transparency and operational efficiency in the sector.

The markets regulator Sebi has granted exemptions for infrastructure investment trusts (InvITs) and real estate investment trusts (REITs) from specific lock-in and allotment restrictions. This applies when these entities issue units to an employee benefit trust under unit-based employee benefit (UBEB) schemes. The decision is expected to simplify the process of acquiring and distributing units to employees.

In its effort to streamline the operational aspects and promote transparency, Sebi has also standardized the quarterly reporting format for InvITs and REITs. The Bharat InvITs Association and Indian REITs Association are tasked with specifying a uniform format for quarterly reports and compliance certificates. This standardized format will be accessible on the association's websites.

These measures are designed to enhance operational efficiency and ensure consistency within the InvIT and REIT sectors, which facilitate investments into commercial real estate and infrastructure assets, respectively.

(With inputs from agencies.)