Circular No: SEBI/HO/DDHS/DDHS-RAC-1/P/CIR/2023/178, Dated: 08.11.2023
SEBI with an objective to uniform the process of claiming unclaimed funds by investors has specified a procedural framework for dealing with unclaimed amounts lying with InvITs, REITs and entities having listed non-convertible securities. Further, the norms w.r.t the manner of claiming such unclaimed amounts by investors has also been prescribed. The circular shall be effective from 01st March, 2024.
This procedural framework would be applicable to entities having listed non-convertible securities with interest/dividend/redemption amount which has not been claimed within thirty days from the due date of interest/dividend/redemption payment.
Further, it is also applicable to the REITs and INVITs having amounts unclaimed or unpaid out of the distributions declared by it.
As per the procedural framework, it is the obligation of the listed entity to transfer the unclaimed amounts to an Escrow Account to be opened by it in any scheduled bank, within seven days from the date of expiry of the said period of thirty days.
Further, for REITs and INVITs, where a distribution has been made by the Manager, but the payment to any unitholders has remained unpaid or unclaimed, up to fifteen days from the date of declaration, the Manager shall, within seven working days from the date of expiry of such period of fifteen days, transfer such unclaimed amounts to an Escrow Account to be opened by it on behalf of the REIT & INVIT in any scheduled bank.
Also, the entities are required to designate as ‘Nodal Officer’, a person who may either be a Director, Chief Financial Officer, Company Secretary or Compliance Officer of the listed entity or investment manager. Such officer shall be the point of contact for investors entitled to claim their unclaimed amounts, SEBI, Stock Exchange(s) and Depositories.
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