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TMI BlogProcedural framework for dealing with unclaimed amounts lying with Real Estate Investment Trusts (REITs) and manner of claiming such amounts by unitholdersX X X X Extracts X X X X X X X X Extracts X X X X ..... date of such declaration. However, in certain cases it has been observed that the distribution amounts remained unclaimed or unpaid because of various reasons, including failure to update account details by the unitholders. 3. In order to deal with any amount remaining unclaimed or unpaid out of distributions [ Hereinafter such amounts shall be referred to as, unclaimed amounts ; ], Regulation 18(6)(f) of the REIT Regulations , was inserted, as under: any amount remaining unclaimed or unpaid out of the distributions declared by a REIT in terms of sub-clause (c), shall be transferred to the Investor Protection and Education Fund constituted by the Board in terms of section 11 of the Act, in such manner as may be specified by the Board. 4. Further, Regulation 18(6)(g) of the REIT 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 (f), may be claimed in such manner as may be specified by the Board . 5. In order to define the manner of handling the unclaimed amounts lying with the REITs, transfer of such amounts to the IPEF and clai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... istributions declared by it. Part I - Transfer of unclaimed amounts to Escrow Account/ Unpaid Distribution Account of the REIT by the Manager: A. Obligations of the REIT : 1. Transfer of unclaimed amount to Unpaid Distribution Account: 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 in any scheduled bank. Such account shall be termed as the Unpaid Distribution Account . 2. Interest in case of default: In case a default is made in transferring the amount referred above in paragraph (A)(1) of Part I or portion thereof to the Unpaid Distribution Account of the REIT, it shall pay, interest on the amount that has not been transferred to the said account, for the period of default i.e. from the date of default till the date of transfer to the Unpaid Distribution Account, at the rate of twelve percent per annum. The said interest amount shall accrue t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Information of unclaimed amounts: Upon such search, the following information shall be visible to the unitholder: 6.1. Amount due to the unitholder on the date of declaration (in INR); 6.2. Category - Interest/ Dividend/ Repayment of Capital/ Any other; 6.3. Date when amount became due (dd/mm/yyyy); 6.4. Amount (in INR) transferred to Unpaid Distribution Account (including penal interest, if any, for delay in transfer by the Manager); 6.5. Date when unclaimed amount was transferred to Unpaid Distribution Account (dd/mm/yyyy); Further, the interest, if any, in the Unpaid Distribution Account, that accrues to the unitholder in proportion to his/ her unclaimed amount, may also be disclosed by the Manager. 7. Policy for filing of claim: The Manager of the REIT shall formulate a policy specifying the process to be followed by unitholders for claiming their unclaimed amounts. Such a policy shall include the following: 7.1. the format in which claim has to be submitted by a unitholder; 7.2. the procedure and documentation for making claim, depending on whether the claim is being submitted by the unitholder self or by the legal heir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... website of the REIT shall be updated by the Manager by the seventh day of the succeeding month. B. Procedure for claim by a unitholder: Any unitholder claiming to be entitled to any unclaimed amount lying with the REIT may apply to the Manager for payment of such amount, in the format and manner as prescribed by the Manager. Part II - Transfer of unclaimed amounts from Unpaid Distribution Account of the REIT to IPEF by the Manager: A. Obligations of the REIT : 1. Transfer of unclaimed amount: Any amount transferred to the Unpaid Distribution Account of an REIT which remains unpaid or unclaimed for a period of seven years from the due date of such transfer, shall be transferred by the Manager, along with interest accrued, if any, thereon, to the IPEF. The Manager shall make such transfer within a period of thirty days from the date of expiry of seven years. Such fund transfer shall be made in the manner prescribed vide SEBI Circular ref. no. SEBI/HO/GSD/TAD/P/CIR/2023/149 dated September 4, 2023 [https://www.sebi.gov.in/legal/circulars/sep-2023/change-in-mode-of-payment-w-r-t-sebi-investor-protection-and-education-fund-bank-a-c_76474.html], as amended f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Name and designation of the Nodal Officer: Email ID and phone no.: 5. Information of unclaimed amount: In the search facility provided for the unitholder, on the website of the REIT, by the Manager, upon searching, the following information shall be visible to the unitholder: 5.1. Amount lying unclaimed in the Unpaid Distribution Account of the REIT as at end of seven years (in INR); 5.2. Break-up of interest/ dividend/ Repayment of Capital/ Any other; 5.3. Date when amount became due for transfer to IPEF (dd/mm/yyyy); 5.4. Amount (in INR) transferred to IPEF by the Manager; 5.5. Date when unclaimed amount was transferred to the IPEF by the Manager (dd/mm/yyyy); 6. Application for refund to IPEF: In terms of Regulation 5(3)(ii) of the IPEF Regulations, an Manager (on behalf of REIT), shall, after processing an application from a unitholder for unclaimed amount, make an application to IPEF for refund of such amount. The application has to be submitted by the Manager for reimbursement of the amount transferred by it to the unitholder, as per prescribed format (enclosed as Form - B to this Annex), in hard copy, addressed t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s: In case the REIT is part of a scheme of arrangement, amalgamation, merger, etc., the resultant entity shall become liable to discharge the obligations of the REIT, in respect of unclaimed amounts. Part III - Claim by legal heir/ successor/ nominee: 12. The aforementioned provisions in respect of the unitholder, shall apply, mutatis mutandis, to the legal heir/ successor/ nominee of the unitholder. The legal heir/ successor/ nominee shall satisfy the provisions specified under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and circulars issued thereunder, for the transmission of units of REIT and/ or the corresponding claim thereon, as applicable. Form - A (To be furnished by the Manager of REIT along with transfer of unclaimed amounts to IPEF) I. Details of the REIT: a. Name b. PAN c. Registered office address d. Correspondence office address - e. Phone number f. Email ID II. Details of Nodal Officer of REIT: a. Name b. Designation c. Registered office address d. Phone number e. Email ID - III. Details of unclaimed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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