SEBI Notifies the Revised Framework for Computation of Net Distributable Cash Flow by REITs and INVITs

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  • Last Updated on 8 December, 2023

REITs and INVITs

Circular No. SEBI/HO/DDHS/DDHS-PoD/P/CIR/2023/184 & 185, Dated 06.12.2023

In order to promote ease of doing business, the SEBI has decided to standardize the framework for calculation of available Net Distributable Cash Flows (NDCF). Accordingly, the revised framework for computation of NDCF by REITs, INVITs, and its Holdcos/SPVs shall be as per the computation formula provided in the circulars.

Also, the trust along with its SPVs needs to ensure that minimum 90% distribution of NDCF be met for a given financial year on a cumulative periodic basis as specified for mandatory distributions in the InvIT & ReIT regulations.

Further, any restricted cash should not be considered for NDCF computation by the SPV, REITs or InvITs. The revised framework shall be applicable from 01.04.2024 and supersedes the Framework for calculation of Net Distributable Cash Flows provided in Master Circular for Infrastructure Investment Trusts (InvITs) dated July 06, 2023 and Real Estate Investment Trusts (REITs) dated July 06, 2023.

Click Here To Read The Full Circular

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