Procedural framework for dealing with unclaimed amounts lying with Real Estate Investment Trusts (REITs) and manner of claiming such amounts by unitholders
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Unclaimed distributions procedure: REITs must escrow unpaid amounts and enable structured claims and refunds to protect investors. REIT Managers must transfer distributions remaining unpaid or unclaimed after the short payment window into an escrow-style Unpaid Distribution Account, designate a Nodal Officer, publish searchable details and a claim policy on the REIT website, process verified claims by electronic payment within prescribed timelines, and preserve records. Amounts unclaimed for the statutory extended period must be transferred, with accrued interest, to the Investor Protection and Education Fund, with specified information submitted to the Board; late transfers attract fixed and continuing penalties. Managers may seek reimbursement from the Fund via prescribed refund applications and must indemnify the Board against future disputes, while the Board verifies and processes refunds.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Unclaimed distributions procedure: REITs must escrow unpaid amounts and enable structured claims and refunds to protect investors.
REIT Managers must transfer distributions remaining unpaid or unclaimed after the short payment window into an escrow-style Unpaid Distribution Account, designate a Nodal Officer, publish searchable details and a claim policy on the REIT website, process verified claims by electronic payment within prescribed timelines, and preserve records. Amounts unclaimed for the statutory extended period must be transferred, with accrued interest, to the Investor Protection and Education Fund, with specified information submitted to the Board; late transfers attract fixed and continuing penalties. Managers may seek reimbursement from the Fund via prescribed refund applications and must indemnify the Board against future disputes, while the Board verifies and processes refunds.
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