SEBI Update – Procedural framework for dealing with unclaimed amounts lying with Infrastructure Investment Trusts (InvITs) and manner of claiming such amounts by unitholders

The SEBI has issued a circular addressing the procedural framework for dealing with unclaimed amounts in Infrastructure Investment Trusts (InvITs).

The circular mandates that unitholders of InvITs should receive not less than ninety per cent of Net Distributable Cash Flows (NDCFs). Regulation 18(6)(c) states that distributions should be made once every six months for publicly offered InvITs and once every year for privately placed InvITs. However, unclaimed amounts have arisen due to various reasons, including unitholders failing to update their account details.
SEBI introduced Regulation 18(6)(e) and 18(6)(f), which specify the transfer of unclaimed or unpaid amounts to the ‘Investor Protection and Education Fund’ (IPEF) and the process for unitholders to claim these amounts.

The provisions of this Circular shall come into effect from March 1, 2024.
Link – https://www.sebi.gov.in/legal/circulars/nov-2023/procedural-framework-for-dealing-with-unclaimed-amounts-lying-with-infrastructure-investment-trusts-invits-and-manner-of-claiming-such-amounts-by-unitholders_78990.html