Navigating SEBI's Big Update on InvITs

We are excited to share the latest developments from the Securities and Exchange Board of India (SEBI) that will significantly impact the compliance workflows for Infrastructure Investment Trusts (InvITs).

Key Points from the SEBI Circular:

1. Relaxation from Certain Provisions for Units Allotted to Employee Benefit Trusts:

   • SEBI has provided exemptions to the lock-in and allotment restrictions for units issued to employee benefit trusts for unit-based employee benefit (UBEB) schemes.

   • This is to promote ease of doing business and facilitate the acquisition of units by employee benefit trusts and their subsequent transfer to employees as per the UBEB scheme terms.

2. Standardized Format for Quarterly Reports and Compliance Certificates:

   • SEBI has mandated that the Bharat InvITs Association (BIA), in consultation with SEBI, shall specify the format for quarterly reports and compliance certificates to be submitted by InvIT Investment Managers.

   • This is to ensure uniformity across the industry in the reporting and certification process.

   • All InvITs are required to follow the format specified by BIA.

3. Alignment of Timelines for Making Distributions by InvITs:

   • SEBI has modified the Master Circular for InvITs to align the timelines for making distributions with the revised InvIT Regulations.

   • This includes changes to the timeline for transferring unclaimed distribution amounts to the Unpaid Distribution Account.

The circular aims to promote ease of compliance, streamline reporting, and align distribution timelines for InvITs, further strengthening the regulatory framework for this investment vehicle.

To help you navigate these evolving regulations, we are excited to introduce our AI-powered ComplianceOS agent. ComplianceOS is India's first BFSI-focused vertical LLM that acts as a compliance officer, automating several time-consuming tasks for your teams.

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To learn more about how ComplianceOS can transform your compliance workflows, schedule a demo with our team today.
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