Sebi lays down framework for calculation of net distributable cash flows by REITs, InvITs, ET RealEstate

December 6, 2023
1 min read
sebi lays down framework for calculation of net distributable cash flows by reits invits

NEW DELHI: To promote ease of doing business, capital markets regulator Sebi on Wednesday decided to standardise the framework for calculation of available net distributable cash flows by REITs, InvITs and their respective holding companies. The new framework will be applicable from April 1, 2024, the Securities and Exchange Board of India (Sebi) said in two separate circulars.

Under the rules, the Net Distributable Cash Flow (NDCF) is computed at the level of real estate investment trusts (REITs), and infrastructure investment trusts (InvITs) and their holding companies (HoldCo) or special purpose vehicles (SPVs).

Further, the minimum distribution should be 90 per cent of the NDFC at the Trust level as well as the HoldCo/SPV level. This is subject to applicable provisions in the Companies Act or the Limited Liability Partnership Act.

Sebi said that the option to retain 10 per cent distribution needs to be computed by taking together the retention done at SPV level and Trust level.

“Further, Trust along with its SPVs needs to ensure that minimum 90 per cent distribution of NDCF be met for a given financial year on a cumulative periodic basis,” the regulator said.

Similarly, any restricted cash should not be considered for NDCF computation by the SPV or InvIT.

Last month, Sebi came out with detailed procedures for dealing with unclaimed funds of investors lying with entities having listed non-convertible securities, REITs and InvITs.

  • Published On Dec 6, 2023 at 07:40 PM IST

Join the community of 2M+ industry professionals

Subscribe to our newsletter to get latest insights & analysis.

Download ETRealty App

  • Get Realtime updates
  • Save your favourite articles

Scan to download App
realty barcode

Source link


Curation Team will curate content from different sources and present for you. We will not edit any content. Source link is provided for the source from where its received .

Leave a Reply

Your email address will not be published.

2023120638 grosvenor mayfairwest1600
Previous Story

Grosvenor unveils Phase 1 plan for Vancouver’s 14-acre Mayfair West • RENX

actis mahindra lifespace to make partial exit worth rs 120 crore from mahindra homes
Next Story

Actis, Mahindra Lifespace to make partial exit worth Rs 120 crore from Mahindra Homes, ET RealEstate

Latest from Blog