Regulation 26ZK - Distributions - Securities and Exchange Board of India (Real Estate Investment Trusts) Regulations, 2014

1 [ Distributions. 26ZK. (1) With respect to distributions made by the scheme of SM REIT and SPV, the investment manager shall ensure, (a) not less than ninety-five per cent. of net distributable cash flows of the SPV are distributed to the scheme of SM REIT subject to applicable provisions in the Companies Act, 2013: Provided that the amount retained by the SPV shall be utilized only in such manner as may be specified by the Board from time to time; (b) hundred per cent. of the net distributable cash flows of the scheme of SM REIT shall be distributed to the unit holders; (c) the distributions are declared at least once in every quarter of the financial year and not later than fifteen working days from the end of the quarter; (d) the distributions are paid to the unitholders within 2 [ five working days from the record date ] . 3 [ Explanation . For the purpose of above clause, record date for the payment of distribution shall be the date which is two working days from the date of the declaration of distribution (excluding the date of declaration and the record date). ] (2) If the investment manager fails to make payment within the said timelines, then the investment manager shall pay interest at the rate of fifteen per cent. per annum to the unitholders, for the delayed period and such excess interest shall not be recovered by the investment manager from the SM REIT in any form. ] 4 [ (3) Any amount remaining unclaimed or unpaid out of the distributions declared by a scheme of SM REIT, 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: Provided that the amount transferred to Investor Protection and Education Fund shall not bear any interest. (4) The unclaimed or unpaid amount of a person that has been transferred to the Investor Protection and Education Fund in terms of sub-regulation (3) of this regulation, may be claimed in such manner as may be specified by the Board. ] ************** NOTES:- 1. Inserted vide Notification No. SEBI/LAD-NRO/GN/2024/166 dated 08-03-2024 2. Substituted vide Notification No. SEBI/LAD-NRO/GN/2024/208 dated 26-09-2024 w.e.f. 26-09-2024 before it was read as, seven working days of such declaration 3. Inserted vide Notification No. SEBI/LAD-NRO/GN/2024/208 dated 26-09-2024 w.e.f. 26-09-2024 4. Inserted vide F. No. SEBI/LAD-NRO/GN/2025/241 dated 22-04-2025