Easier to claim unclaimed funds in Reit-Invit, SEBI made this change in rules

The number of people investing in REIT i.e. Real Estate Investment Trust and INVIT i.e. Infrastructure Investment Trust has increased. The convenience of investing in small amounts and the convenience of exiting at any time has attracted investors to REITs and InvITs. However, it has been observed that no one claims a share of the money invested in REITs and Invits. SEBI has now simplified the rules regarding such unclaimed funds.

It will be implemented from March next year.

Market regulator SEBI on Wednesday gave detailed information on the process related to unclaimed funds in REIT and InvIT. With these SEBI rules, it will become easier for investors to claim unclaimed funds lying in REITs and INVITs. These new rules of SEBI have not yet been implemented. The regulator has said that the new simplified rules will come into effect from March 1, 2024.

This is the objective of the regulator SEBI.

Earlier in September, SEBI had approved amendments to rules related to disclosure of Investor Protection and Education Fund ie IPEF, REIT and InvIT. Now SEBI has given information about the process of claiming unclaimed funds through three circulars. SEBI says its initiatives are focused on creating a uniform process for the ease and convenience of investors, through which unclaimed funds can be claimed in an orderly manner.

You will be able to claim this way.

SEBI has laid down a standard procedure and asked all listed entities, REITs and invitees to follow it. Under this, all listed entities, REITs and Invits will transfer unclaimed amounts to an escrow account. Investors will be able to claim such funds from the escrow account. To claim, investors have to approach listed entities, REITs or InvITs.

These matters have also been simplified.

After the money is transferred to the escrow account, investors will have seven years to claim it. If they are not claimed within seven years, the funds will be transferred to the IEPF. A few days before this, SEBI has also changed and made it easier for investors to claim their shares in case of death.

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