Sebi eases norms for investors to access unclaimed amount in debt securities, REITs, InvITs

The amendments are also towards “creating a regulatory framework for segregation of unclaimed amounts of investors in the IPEF", the press statement said.

The Securities and Exchange Board of India (Sebi) Board has approved amendments that would make it easier for investors in debt to access unclaimed amounts in debt-listed securities, Real-Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs).

After the meeting on September 21, the Sebi Board announced approval of amendments to the Investor Protection and Education Fund (IPEF) Regulations, Listing Obligations and Disclosure Requirements (LODR) Regulations, InvIT Regulations and REIT Regulations to streamline the framework for credit of unclaimed amounts of investors in listed entities other than companies.

The press release stated, “The proposal for transfer of unclaimed amounts lying in escrow account for more than seven years, to the IPEF for debt listed entities other than companies under LODR Regulations was approved by the SEBI Board in its meeting held on September 30, 2022. Similarly, the proposal to transfer the unclaimed or unpaid amounts to investors in REITs and InvITs to IPEF was approved by the SEBI Board in its meeting held on December 20, 2022. Accordingly, changes were made in the REITs Regulations and InvIT Regulations.”

It added, “Consequently, with a view to further streamline the credit of unclaimed amounts and provide for the claim of such unclaimed amounts, the Board has approved amendments to the IPEF Regulations, LODR Regulations, REIT Regulations and InvIT Regulations” to prescribe a uniform process of claim for such amounts in a streamlined manner.

It said, “Investors may approach the debt listed entity/ REIT/InvIT to claim their unclaimed amounts, thereby ensuring minimal disruptions in the claim process for investors.”

The amendments are also towards “creating a regulatory framework for segregation of unclaimed amounts of investors in the IPEF, to facilitate utilization and processing of such amounts in the manner prescribed by the Board”.