Sebi Streamlines Process for Investors to Access Unclaimed Funds in REITs, InvITs, Debt Securities – News18

Capital markets regulator Sebi on Wednesday got here out with detailed procedures for coping with unclaimed funds of buyers mendacity with entities having listed non-convertible securities, REITs and InvITs. Also, the regulator has put in place a way of claiming such unclaimed quantities by buyers.

The new framework will come into impact from March 1, 2024, the Securities and Exchange Board of India (Sebi) stated in three separate circulars. The transfer is geared toward prescribing a uniform technique of declare for such unclaimed funds in a streamlined method for the benefit and comfort of buyers. This got here after the board of Sebi in September accepted amendments to guidelines concerning the IPEF (Investor Protection and Education Fund) disclosure, actual property funding trusts (REITs), and infrastructure funding trusts (InvITs).

Going by circulars, Sebi has outlined the way of dealing with the unclaimed quantities mendacity with REITs, InvITs, and in the escrow accounts of the listed entities (which aren’t corporations), switch of such quantities to IPEF and declare thereof by the buyers. Additionally, the regulator has standardised the method to be adopted by a listed entity, REITs and InvITs for the switch of such quantities to escrow accounts and by the buyers for making claims thereof.

Investors might strategy the debt-listed entity/ REIT/InvIT to declare their unclaimed quantities, thereby guaranteeing minimal disruptions in the declare course of for buyers. Under the rule, any quantity transferred to the escrow account remaining unclaimed for a interval of seven years shall be transferred to IEPF.

(This story has not been edited by News18 workers and is printed from a syndicated information company feed – PTI)