This article examines the significant amendments to the regulations governing Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs). The SEBI (InvITs) (Second Amendment) Regulations, 2024, and SEBI (REITs) (Second Amendment) Regulations, 2024, introduce new norms primarily focusing on implementing a unit-based employee benefit scheme called the 'Employee Unit Option Scheme.' The article covers the following key aspects:
‣ Definition and overview of the 'Employee Unit Option Scheme'
‣ New regulations for employee unit-based schemes in InvITs and REITs
‣ Applicability of the framework for unit-based employee benefit schemes
‣ Procedures for receiving units by Employee Benefit Trusts
‣ Methods of allotting units to Employee Benefit Trusts
‣ Role of the Nomination and Remuneration Committee
‣ Disclosure requirements for unit-based employee benefit schemes in annual reports
‣ Introduction of new schedules in SEBI regulations for REITs and InvITs
