INVESTOR EDUCATION AND PROTECTION FUND AUTHORITY (ACCOUNTING, AUDIT, TRANSFER AND REFUND) AMENDMENT RULES, 2017 (effective from 28.02.2017)
Important Amendments
| The shares shall be credited to DEMAT Account of the Authority to be opened by the Authority, within a period of thirty days of such shares becoming due to be transferred to the Fund. |
| In cases where the period of seven years has been completed or being completed during the period from 7th September, 2016 to 31st May, 2017, the due date of transfer of such shares shall be deemed to be 31st May, 2017. |
Procedure for transferring shares against which dividend has not been paid or claimed for seven consecutive years [Section 124(6) read with Rule 6 of Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Amendment Rules, 2017]
1. Board approval -Transferring the shares on receipt of duly filled transfer forms
– Approving Intimation letter to shareholders
– Approving newspaper advertisement
– Authorizing CS/ other official to effect the transfer by executing requisite documents
2. Inform shareholders (whose dividend unpaid/unclaimed for 7 consecutive years) regarding transfer of their shares in IEPF suspense account at least 3 months before May 31, 2017e. February 28, 2017. Since this date has already elapsed, the same is required to be done immediately.
3. Simultaneously, a newspaper advertisement is required to be issued in English and regional language regarding the transfer.
4. Where Court has restrained transfer of certain shares and payment of dividend or such shares are pledged/hypothecated under Depositories Act, 1996, the Company shall not transfer them to the fund and furnish details of such shares in form IEPF 3 within 30 days of end of financial year i.e. March 31, 2017
5. For effecting the transfer:
| Steps | For shares in demat form | Steps | For shares in physical form |
| 1 | CS/Authorized Person shall inform the depository by way of corporate action for transferring the shares in favor of the authority. | 1 | CS/Authorized person shall make an application to Company on behalf of concerned shareholders for issue of duplicate share certificate. |
| 2 | On receipt of such intimation, the depository shall effect the transfer of shares in favor of DEMAT account of the Authority. | 2 | On receipt of such application, Company shall issue a duplicate share certificate stating “Issued in lieu of share certificate no. ____ for the purpose of transfer to IEPF”, with word “Duplicate” stamped in bold on first page of the share certificate. |
| 3 | Entry to be made in Form No. SH 2, for each duplicate share certificate issued | ||
| 4 | After issue of duplicate share certificates, the company shall inform the depository by way of corporate action to convert the duplicate share certificates into DEMAT form and transfer in favor of the Authority. |
6. Company shall send a statement to the Authority in Form No. IEPF 4giving details of transfer of shares.
IEPF Form Checklist:
| Section | Particulars | Form | Due date |
| Section 124 (5) | Transfer of Unpaid Dividend Account of the Company to IEPF | IEPF – 1 | Within 30 days after 7 years from the date of transfer to Unpaid Dividend Account. |
| Section 124 (2) | Submit statement (as on AGM date) of 7 years of unclaimed dividend amount to MCA & Upload on website | IEPF – 2 | Within 90 days from the date of the AGM |
| Section 124 (6) | Furnish details of shares and unpaid dividend against which restraining orders have been issued | IEPF – 3 | Within 30 days from end of financial year |
| Section 124 (6) | Furnish details of shares transferred to IEPF | IEPF – 4 | No time line prescribed |
| Section 124 (6)/ Section 125 (3) (a) | For claiming the transferred shares back from IEPF Account/application for refund by the shareholder | IEPF – 5 | No time line prescribed |
| Rule 8 of IEPF Rules | Statement stating amounts due to be transferred to the Fund in next Financial year | IEPF – 6 | Within 30 days from the end of Financial year |
| Rule 8 of IEPF Rules | Statement giving reasons for deviation in amount as given in IEPF 6 | No form prescribed yet | Within 30 days from the closure of accounts for the Financial year |
