WHEN IEPF-2 IS REQUIRED?
The IEPF stands for Investor Education and Protection Fund, and it is used to safeguard investors, as the name suggests. We attempted to write an essay on the IEPF-2 form, as well as its criteria and timelines, in the hopes that you will find it informative and relevant. Let’s take a closer look at a couple of the concepts in the IEPF-2 form–
Rule 5(8) and 7(2B) of the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer, and Refund) Rules, 2016 mandate the filing of e-Form IEPF-2.
Rule 5(8):
Every company shall identify the unclaimed amounts, as defined in section 125(2) of the Act, as of the date of closure of the financial year the account of which is to be adopted in the AGM as per section 137(1) of the Act, within 60 days after the holding of the AGM or the date on which it should have been held as per the provisions of section 96 of the Act, whichever is earlier, and every year thereafter until the completion of the seven-year period, within 60 days after the holding.
For each of the previous seven financial years, each company shall separately furnish and upload on its own website, as well as on the website of the Authority or any other website as may be specified by the Government, a statement or information of unclaimed and unpaid amounts through Form No. IEPF-2, containing the following information:-
(a) the names and last known addresses of those entitled to the sum;
(b) the type of the payment;
(c) the amount to which each person is entitled;
(d) the due date for deposit into the Investor Education and Protection Fund; and
(e) any additional information deemed required.
Rule 7(2B):
Within fifteen days of the date of publication of these rules, the Nodal Officer and Deputy Nodal Officer’s details, including his or her designation, postal address, telephone and mobile number, and company authorised e-mail ID, shall be communicated to the IEPF Authority in Form IEPF – 2, and the company shall display the name of the Nodal Officer and his e-mail ID on its website. Provided, however, that any change in the nodal officer or his information must be reported to the Authority via Form IEPF 2 within seven days of the change, along with the board’s approval.
Statement of Unpaid and Unclaimed Amounts with Nodal Officer Information is the purpose of the e-Form.
It was formerly known under the Companies Act of 1956 – Form 5-INV e-Form Number
What is the purpose of filing?
1. A list of monies that have not been claimed or paid
2. Designation of a Nodal Officer
3. Appointment of a Nodal Officer’s Deputy
4. Only the Nodal Officer’s information has to be updated.
5. Updating/Cessation of subordinate Nodal Officer’s information solely
When to file?
Statement of Unpaid and Unclaimed Amounts – Must be filed within 60 days , 60 days should be calculated from date mentioned in field 4(b).
Form filed for appointment of Nodal Officer -must be filed within 7 days from the date of Board resolution
Form filed for appointment of Deputy Nodal Officer- must be filed within 7 days from the date of board resolution
Form filed for updating of Nodal Officer details -must be filed within 7 days from the date of board resolution
Form filed for updating/Cessation of Deputy Nodal Officer details – must be filed within 7 days from the date of the board resolution.
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I have done my best to provide all the specifics, but please accept my apologies if any of the information supplied is incorrect. Please feel free to comment, interact, and propose topics for future posts.
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