Brookfield India REIT's investment manager, Brookprop Management Services, has settled allegations of violating the Code of Conduct prescribed by the Securities and Exchange Board of India (SEBI).
The entity paid Rs 20.47 lakh (around $23,000), according to a settlement order issued by the market regulator dated September 1.
The SEBI order said that it had probed the investment manager over allegations that it borrowed funds to facilitate distribution of net distributable cash flow (NDCF), allegedly in violation of Regulation 7(d) read with clauses 5 and 7 of Schedule VI of SEBI (Real Estate Investment Trusts) Regulations.
Regulation 7 (d) asks REITs and associated parties to comply with the Code of Conduct. Clause 5 asks the REIT manager to carry out the REIT’s business and invest in accordance with its offer document and in the interest of unit holders. Clause 7 asks to maintain high standards of integrity and fairness in all dealings.
Pending proceedings, Brookprop proposed to settle the matter without admitting or denying the findings. It filed a settlement application on July 26, 2024.
The terms of settlement were arrived at after consultations with SEBI's internal committee and the High Powered Advisory Committee.
Brookfield India REIT, which has a presence across six major cities, has a portfolio worth Rs 37,954 crore, as per its FY25 annual report. It reported a revenue of Rs 2,385 crore and adjusted EBITDA of Rs 1,910 crore.
