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TMI BlogProcedural framework for dealing with unclaimed amounts lying with Infrastructure Investment Trusts (InvITs) 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 ..... not later than fifteen days from the 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)(e) of the InvIT Regulations, was inserted, as under: "any amount remaining unclaimed or unpaid out of the distributions declared by a InvIT 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)(f) of the InvIT 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 (e), 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 InvITs, transfer of such amounts to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ibution Account of the InvIT by the Investment Manager: A. Obligations of the InvIT: 1. Transfer of unclaimed amount to Unpaid Distribution Account: Where a distribution has been made by the Investment Manager, but the payment to any unitholders has remained unpaid or unclaimed, up to fifteen days from the date of declaration, the Investment 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 InvIT 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 InvIT, 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 to the unitholder in proportion to the amount remaining unclaimed. The Investment Man ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nterest, if any, for delay in transfer by the Investment 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 Investment Manager. 7. Policy for filing of claim: The Investment manager of the InvIT 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/ nominee/ etc. of the unitholder; 7.3. the documents required to be submitted in support of the claim e.g. proof of identity, proof of address, proof of holding, etc.; 7.4. manner of submission of claim by the unitholder; 7.5. timeline within which the unitholder can submit documents, provide clarifications etc. 7.6. conditions for rejection of claim and option of re-filing of a clai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsfer of unclaimed amounts from Unpaid Distribution Account of the InvIT to IPEF by the Investment Manager: A. Obligations of the InvIT: 1. Transfer of unclaimed amount: Any amount transferred to the Unpaid Distribution Account of an InvIT which remains unpaid or unclaimed for a period of seven years from the due date of such transfer, shall be transferred by the Investment manager, along with interest accrued, if any, thereon, to the IPEF. The Investment 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 from time to time. 2. Interest in case of default: In case a default is made in transferring the amount referred above in paragraph (A)(1) of Part II or portion thereof to the IPEF, the Investment manager shall be liable to a penalty of one lakh rupees and in case of continuing failure, a further penalty of five hundred rupees f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... laimed amount, make an application to IPEF for refund of such amount. The application has to be submitted by the Investment 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 to 'Chief General Manager, Office of Investor Assistance and Education, SEBI', as well as in soft copy, via email to [email protected]. 7. Indemnity: The amount refunded from IPEF to the InvIT for the unclaimed amount paid by the InvIT to the unitholder, shall discharge the Board against any future claim of such unitholder. The InvIT shall indemnify the Board, against any future dispute that may arise with respect to the unclaimed amount of the unitholder, including, on account of a fraudulent claim or misrepresentation by the unitholder. However, this does not preclude the Board from taking any action for the fraud or misrepresentation in this regard. 8. Others: The provisions with regard to Designating Nodal Officer, Search facility for a unitholder on the website of the InvIT, Policy for filing of claim by a unitholder and Processing of claim of a unitholder by the Investment Manager, Maintena ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Phone number - f. Email ID - II. Details of Nodal Officer of InvIT: a. Name - b. Designation - c. Registered office address - d. Phone number - e. Email ID - III. Details of unclaimed amounts: S. No. Name of the Unitholder Last known address, contact details (email ID and phone no.) of unitholder PAN of the Unitholder DPID/ Client ID of the Unitholder (if applicable) Amount transferred f rom Unpaid Distribution Account to IPEF (in INR) Category of Amount (interest/ dividend/ Repayment of Capital/ Any other) Date of Payment to IPEF UTR No. IV. Any other relevant information: Signature: Name: Designation of Officer (with stamp): Place: Date: Form - B (To be submitted by the Investment Manager of InvIT along with refund application to IPEF) I. Details of the InvIT: a. Name - b. PAN - c. Registered office address - d. Correspondence office address - e. Phone number - f. Email ID - g. Bank account details where refund is to be made (Bank account number, Name of Bank, IFSC Code, Branch address) - II. Details of amount claimed for refund: S. No. Name of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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