The Securities and Exchange Board of India (SEBI) on November 08, 2023, issued the Procedural framework for dealing with unclaimed amounts lying with Infrastructure Investment Trusts (InvITs) and the manner of claiming such amounts by unitholders.
The following has been stated:
• It mandates that not less than ninety per cent of Net Distributable Cash Flows (NDCFs) of the InvIT shall be distributed to the unitholders under Regulation 18(6)(b) of the SEBI (Infrastructure Investment Trusts) Regulations, 2014.
• It is stated that that such distributions to be made by the InvIT, shall be declared and made not less than once every six months in every financial year in case of publicly offered InvITs and not less than once every year in case of privately placed InvITs and shall be made not later than fifteen days from the date of such declaration.
• Further, Regulation 18(6)(f) of the InvIT Regulations, provides that, ‘the unclaimed or unpaid amount of a person that has been transferred to the Investor Protection and Education Fund in terms of sub-clause (e), may be claimed in such manner as may be specified by the Board’.
A framework defining the procedure to be followed by an InvIT for the transfer of unclaimed amounts, initially to an Escrow Account and subsequently, to the IPEF and claim thereof by a unitholder, has been provided as Annex –A to this Circular.
Please find the Annexure attached to the document below.
[Circular No. SEBI/HO/DDHS/DDHS-RAC-1/P/CIR/2023/178]
