SEBI Settlement Sees Brookprop Pay ₹20.47 Lakh Following REIT Regulation Breach Allegations

The Securities and Exchange Board of India (SEBI) has successfully concluded a regulatory dispute with Brookprop Management Services, the investment manager of Brookfield India Real Estate Investment Trust, after the company agreed to pay a settlement amount of ₹20.47 lakh.

SEBI Issues Show-Cause Notice Over REIT Compliance Concerns

The regulatory proceedings originated from a show-cause notice that SEBI issued on June 11, 2024, which highlighted concerns regarding alleged violations of Real Estate Investment Trust (REIT) regulations. The market regulator specifically flagged the company's use of borrowed funds for distributing Net Distributable Cash Flow, a practice that reportedly contravened established REIT sector compliance standards.

Settlement Application Filed Without Admission of Wrongdoing

Following the regulatory notice, Brookprop Management Services submitted a settlement application to SEBI in July 2024, strategically choosing not to admit or deny the allegations brought against them. The company's approach reflected a pragmatic decision to resolve the matter through SEBI's established settlement mechanism rather than pursuing lengthy litigation proceedings.

After thorough review by SEBI's internal committees and advisory panels, the regulatory body approved the settlement proposal in August 2025. The settlement process demonstrates SEBI's ongoing regulatory framework for addressing compliance issues in the financial markets.

Case Formally Closed Following Payment Receipt

SEBI officially closed the enforcement proceedings after receiving the agreed settlement amount from Brookprop Management Services. The resolution allows the REIT manager to continue operations while addressing the regulatory concerns in a structured and time-efficient manner.

This settlement reflects the broader regulatory environment where India's growing REIT market continues to evolve under enhanced supervision and compliance requirements.