Sebi Simplifies Process to Recover Unclaimed Funds

Securities and Exchange Board of India (Sebi) has simplified the process for investors to access unclaimed funds lying with entities such as REITs, InvITs and debt securities. The new framework, which will come into effect on March 1, 2024, aims to make it easier for investors to track and claim their unclaimed funds. Key Changes: Uniform Claim Process: Investors will now be able to claim unclaimed funds under a single, uniform process. This will eliminate the need for investors to file separate claims with different entities. Online Claim Submission: Investors will be able to submit their claims online through the Sebi website. This will make the process more convenient and accessible. Early Identification and Transfer: Sebi will require entities to identify unclaimed funds at an early stage and transfer them to the Investor Protection and Education Fund (IPEF). This will ensure that investors have access to their funds sooner. IPEF Portal: Sebi will launch a dedicated portal for investors to track and claim their unclaimed funds through IPEF. This portal will provide investors with real-time information about their unclaimed funds. Benefits for Investors: The new framework will provide several benefits to investors, including: Ease of Claim: The simplified claim process will make it easier for investors to track and claim their unclaimed funds. Timely Resolution: The early identification and transfer of unclaimed funds to IPEF will ensure that investors have access to their funds sooner. Transparency: The dedicated portal for IPEF will provide investors with real-time information about their unclaimed funds. Impact on REITs, InvITs and Debt Securities: The new framework will also have an impact on REITs, InvITs and debt securities. These entities will now be required to implement stricter procedures for identifying and transferring unclaimed funds to IPEF. This will help to ensure that investors are not left out of pocket.