SEBI Update – Procedural framework for dealing with unclaimed amounts lying with Real Estate Investment Trusts (REITs) and manner of claiming such amounts by unit holders

The SEBI has issued a circular outlining the procedural framework for dealing with unclaimed amounts in Real Estate Investment Trusts (REITs).

The circular emphasizes Regulation 18(16)(b) and 18(16)(c) of the SEBI (Real Estate Investment Trusts) Regulations, 2014, which mandate the distribution of Net Distributable Cash Flows (NDCFs) and the timeline for such distributions. 

It introduces Regulation 18(6)(f) and 18(6)(g) to define the transfer and claiming process for unclaimed distributions. 

The framework includes steps for REITs to transfer unclaimed amounts to an Escrow Account and subsequently to the Investor Protection and Education Fund (IPEF). It also outlines the obligations of REITs, the role of the Manager, and the procedures for unitholders to claim their unclaimed amounts.

The provisions of this Circular shall come into effect from March 1, 2024.
Link – https://sebi.gov.in/legal/circulars/nov-2023/procedural-framework-for-dealing-with-unclaimed-amounts-lying-with-real-estate-investment-trusts-reits-and-manner-of-claiming-such-amounts-by-unitholders_78992.html