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Brookprop Management Services, the manager of Brookfield India Real Estate Trust, resolved a regulatory case with the Securities and Exchange Board of India (SEBI) earlier this week by paying INR 20.47 lakh. The matter related to alleged violations of Real Estate Investment Trust (REIT) regulations, specifically the use of borrowed funds to facilitate distributions. SEBI disposed of the adjudication proceedings following the acceptance of the settlement proposal filed by the entity.
Brookprop Management Services, which manages Brookfield India Real Estate Trust, settled a case with capital market regulator SEBI after making a payment of INR 20.47 lakh. The case revolved around alleged violations of REIT norms, particularly the use of borrowed funds for distributing Net Distributable Cash Flow (NDCF). Advertisement
SEBI, in its show cause notice, had alleged that the applicant utilised borrowed funds for facilitating distributions, which contravened REIT guidelines. The matter was pursued through adjudication proceedings initiated via a show cause notice issued in June.
The regulator stated in its order that, given the acceptance of settlement terms and receipt of the settlement amount, the adjudication proceedings against the applicant were disposed of under the applicable settlement regulations.
The order followed an application filed by the entity with SEBI, wherein it proposed to resolve the proceedings through a settlement order, without admitting or denying the findings of fact or conclusions of law. This move allowed Brookprop to bring closure to the regulatory matter without further litigation.
By opting for a settlement order, Brookprop avoided protracted legal proceedings while addressing the concerns raised by SEBI. Although the entity did not admit to or deny the alleged violations, the payment and closure of the case signalled its compliance with settlement norms, bringing the issue to a formal close.
Source - PTI
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