Sebi Simplifies Unclaimed Funds Process for REITs, InvITs, Debt Securities
By Rediff Money Desk, NEWDELHI Nov 08, 2023 19:44
Sebi introduces new procedures for investors to claim unclaimed funds in REITs, InvITs, and debt securities. The new framework aims to streamline the process for investor convenience, effective March 1, 2024.
![Sebi Simplifies Unclaimed Funds Process for REITs, InvITs, Debt Securities](https://im.rediff.com/money/2018/aug/27sebi.jpg)
New Delhi, Nov 8 (PTI) Capital markets regulator Sebi on Wednesday came out with detailed procedures for dealing with unclaimed funds of investors lying with entities having listed non-convertible securities, REITs and InvITs.
Also, the regulator has put in place a manner of claiming such unclaimed amounts by investors.
The new framework will come into effect from March 1, 2024, the Securities and Exchange Board of India (Sebi) said in three separate circulars.
The move is aimed at prescribing a uniform process of claim for such unclaimed funds in a streamlined manner for the ease and convenience of investors.
This came after the board of Sebi in September approved amendments to rules about the IPEF (Investor Protection and Education Fund) disclosure, real estate investment trusts (REITs), and infrastructure investment trusts (InvITs).
Going by circulars, Sebi has defined the manner of handling the unclaimed amounts lying with REITs, InvITs, and in the escrow accounts of the listed entities (which are not companies), transfer of such amounts to IPEF and claim thereof by the investors.
Additionally, the regulator has standardised the process to be followed by a listed entity, REITs and InvITs for the transfer of such amounts to escrow accounts and by the investors for making claims thereof.
Investors may approach the debt-listed entity/ REIT/InvIT to claim their unclaimed amounts, thereby ensuring minimal disruptions in the claim process for investors.
Under the rule, any amount transferred to the escrow account remaining unclaimed for a period of seven years shall be transferred to IEPF.
Also, the regulator has put in place a manner of claiming such unclaimed amounts by investors.
The new framework will come into effect from March 1, 2024, the Securities and Exchange Board of India (Sebi) said in three separate circulars.
The move is aimed at prescribing a uniform process of claim for such unclaimed funds in a streamlined manner for the ease and convenience of investors.
This came after the board of Sebi in September approved amendments to rules about the IPEF (Investor Protection and Education Fund) disclosure, real estate investment trusts (REITs), and infrastructure investment trusts (InvITs).
Going by circulars, Sebi has defined the manner of handling the unclaimed amounts lying with REITs, InvITs, and in the escrow accounts of the listed entities (which are not companies), transfer of such amounts to IPEF and claim thereof by the investors.
Additionally, the regulator has standardised the process to be followed by a listed entity, REITs and InvITs for the transfer of such amounts to escrow accounts and by the investors for making claims thereof.
Investors may approach the debt-listed entity/ REIT/InvIT to claim their unclaimed amounts, thereby ensuring minimal disruptions in the claim process for investors.
Under the rule, any amount transferred to the escrow account remaining unclaimed for a period of seven years shall be transferred to IEPF.
Read More On:
DISCLAIMER - This article is from a syndicated feed. The original source is responsible for accuracy, views & content ownership. Views expressed may not reflect those of rediff.com India Limited.
You May Like To Read
TODAY'S MOST TRADED COMPANIES
- Company Name
- Price
- Volume
- GTL Infrastructure
- 2.93 ( -4.87)
- 226206286
- IFL Enterprises
- 1.30 (+ 4.84)
- 81461564
- Vodafone Idea L
- 16.79 (+ 0.66)
- 67447398
- NCL Research
- 0.95 ( -4.04)
- 31996628
- Franklin Industries
- 3.73 (+ 3.32)
- 21511209
MORE NEWS
![Dell Launches...](https://im.rediff.com/80-80/money/2024/feb/28ai-pc1.jpg)
Dell Launches Copilot+ AI PCs in India with...
Dell, Qualcomm, and Microsoft partner to launch Copilot+ AI PCs in India, featuring XPS...
![Union Budget...](https://im.rediff.com/80-80/money/2021/jan/07budget.jpg)
Union Budget 2024: Focus on Welfare, Deposit...
Care Ratings expects India's Union Budget 2024 to prioritize welfare schemes,...
![Aluminium Scrap...](https://im.rediff.com/80-80/money/2020/jul/16aluminium.jpg)
Aluminium Scrap Import Duty Hike Urged by...
Aluminium producers seek a rise in import duty on scrap to 7.5% from 2.5%, aiming to...