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SEBI has issued a consultation paper in which it has proposed revision of timeline for distribution of dividends in REITs (other than SM REITs) and INvITs to 5 working days from the date of declaration.
The investment manager of REIT/InvIT will also have to intimate the record date to the stock exchange at least two working days in advance.
Earlier, REITs and INvITs would take 15 days for distribution from the date of declaration.
Other key proposals include:
- SEBI has proposed the reduction of trading lot for privately placed InvIT to Rs 25 lakh. Earlier, the ticket size for INvITs was Rs. 1 crore.
- It has proposed that adequate electronic backup systems have to be in place by the manager of REIT/ investment manager of InvIT /trustee for maintenance of records.
Suggestions to the consultation paper can be sent till May 30, 2024.