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MCA notifies IEPF Authority (Accounting, Audit, Transfer and Refund) Second Amendment Rules, 2021 to amend the existing Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 vide Notification No. G.S.R.785(E) Dated: 9th November, 2021.  IEPF Authority (Accounting, Audit, Transfer and Refund) Second Amendment Rules, 2021 shall come into force from 09th November, 2021.

Ministry of Corporate Affairs and IEPFA further simplify IEPFA Claim Settlement Process towards Ease of Doing Business and Ease of Living

In a major step towards the mission and vision of Government of India of Ease of Living and Ease of Doing Business, Ministry of Corporate Affairs (MCA) has further simplified claim settlement process through rationalization of various requirements under Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016.

For claimants, requirement of Advance Receipt has been waived off, requirement of Succession Certificate/ Probate of Will/ Will has been relaxed up to Rs 5,00,000 (five lakh) both for Physical & DEMAT shares, notarization of documents has been replaced with self-attestation and requirements of Affidavits and Surety relatively have been eased.

For companies, requirement of attaching documents related to Unclaimed Suspense Account has been eased and companies have been given flexibility to accept transmission document viz. Succession Certificate, Will etc. as per their internal approved procedures and Newspaper Advertisement requirement for loss of physical Share Certificate has been waived off up to an amount of Rs.5,00,000.

The focus of the change has been to make the process simpler and quicker for the claimants. The new regime envisages a trust-based model for faster citizen centric services and turnaround time. It is expected that with these changes many more claimants shall come forward to claim their shares and amounts from Investor Education and Protection Fund Authority (IEPFA). Till date IEPFA has approved more than 20,000 claims refunding more than 1.29 crore shares. Shares of market value of more than Rs 1,011 crore and dividends and other amounts exceeding Rs 20 crore have been refunded.

ABOUT IEPFA

Investor Education and Protection Fund Authority (IEPFA) has been established under Section 125 of the Companies Act 2013 for administration of the IEPF fund as per section 125 (3) of Companies Act 2013. The main objective of the authority includes to promote Investor Education, Awareness & Protection, refund unclaimed shares, dividends and other amounts transferred to it under sections 124 and 125 of the Companies Act 2013 to the rightful claimants. IEPFA works under the administrative control of MCA.

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Analysis of Amendment with Comments

 

Sr. No. Amendment Comments
1 Omission: Rule 7(7) proviso the words “Advance Receipts”, shall be omitted. This is certainly a clerical error in the amendment rules. It is stated that in rule 7, in sub-rule (7), in the proviso, the words “Advance Receipts”, shall be omitted. However, in rule 7 the words “Advance Receipts” finds place only in proviso to sub-rule (2).

If the intention of the Ministry is to remove the above-mentioned words from proviso to sub-rule (2) then the amended provisions shall stand as follows:

Upon submission, Form No. IEPF-5 shall be transmitted online to the Nodal Officer of the company for verification of claim:

Provided that the claimant after making an application in Form No. IEPF-5 under sub rule 1, shall send original physical share certificate, original bond, deposit certificate, debenture certificate, as the case may be, along with Indemnity Bond, Advance Receipts, any other document as enumerated in Form No. IEPF-5, duly signed by him, to the Nodal Officer of the concerned company at its registered office for verification of the claim.

2 Substitution: Schedule II 

for the words, figures and bracket, “Rs 2,00,000 (Rupees Two Lakh only),” wherever occurring, Rs 5,00,000 (Rupees five lakh only), shall be substituted.

The base limit of ₹2 lakhs is increased to ₹5 lakhs for various document submission related purposes.  It is advisable to refer to the Schedule II for better understanding.
3 Substitution: Schedule II under heading, “Documents to be submitted to the Authority to register transmission of securities”, under sub-heading “A. Documentary requirement for securities held in physical mode” in item 1, under the heading, “Where the shares are held singly with nomination” 

(a) in sub-item 1.1, for the word, “nominee”, the word, “claimant” shall be substituted;

(b) for sub-item 1.2, the following shall be substituted, namely: –

“Copy of death certificate of security holder attested by claimant.”

(c) for sub-item 1.4, the following shall be substituted, namely: –

“The original share certificate is to be sent to the company and scanned copy to be attached with the form”

a. Amendment in 1.1 is for the purpose of convenience and widening the scope.

b. Amendment in 1.2 is to provide that the copy of death certificate shall be attested by the claimant.

c. Amendment in 1.4 is to clarify that the original share certificate shall be sent to the company also scanned copy of the same shall be attached with the form.

4 Substitution, Insertion: Schedule II under heading, “Documents to be submitted to the Authority to register transmission of securities”, under sub-heading “A. Documentary requirement for securities held in physical mode” in item 2, under the heading, “Where the shares are held singly without nomination, the following documents in addition to the documents specified at paragraph 1 are required” 

(a) in sub-item 2.2, for clause (a), the following shall be substituted

“Succession certificate or probate of will or will or letter of administration or Decree, as may be applicable in terms of Indian Succession Act, 1925. (39 of 1925) or any other Decree or Order of any Court or Tribunal”.

(b) for sub-item, 2.3, the following shall be substituted, namely: –

“For value of securities more than 5,00,000 (Rupees Five lakh only) per issuer company as on date of application: Succession certificate or probate of will or will or letter of administration or Decree, as may be applicable in terms of Indian Succession Act, 1925. (39 of 1925) or any other Decree or Order of any Court or Tribunal.”.

(c) after sub-item 2.3 and before item 3, the following explanation shall be inserted, namely: –

“Explanation: (1) The Company may enhance the limit of Rs. 5,00,000 (Rupees Five lakh only) per issuer company in accordance with SCHEDULE VII of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, after taking approval of its Board of Directors and provide copy of Board resolution to Authority at the time of verification of claim.

(2) for the case where will is provided, following documents shall also be required:

(a) Legal heirship certificate issued by Competent Authority;

(b) No Objection Certificate from all legal heirs in favor of the claimant;

(c) Affidavit from witness about confirmation of will wherever alive or death certificate of such witness;

(d) Affidavit with regard to the will as last will and no matter is pending before any court with regard to such will;

(e) Surety affidavit by at least two sureties with their PAN Card.

a. Self-explanatory.

Amended provision:

Succession certificate or probate of will or will or letter of administration or court Decree, as may be applicable in terms of Indian Succession Act, 1925. (39 of 1925) or any other Decree or Order of any Court or Tribunal.

b. Amendment in 2.3 is to bring it in line with the amendments made in 2.2 clause (a).

c. Insertion of explanation after 2.3 is self-explanatory.

5 Substitution: Schedule II under heading, “Documents to be submitted to the Authority to register transmission of securities”, under sub-heading “A. Documentary requirement for securities held in physical mode” in item 3, under the heading “Where the shares are held jointly with nomination”

(a) in sub-item 3.1, for the word, “nominee”, the word, “claimant” shall be substituted;

(b) for sub-item 3.2, the following shall be substituted, namely: –

“Copy of death certificate of security holder attested by claimant.”

(c) for sub-item 3.4, the following shall be substituted, namely: –

“The original share certificate is to be sent to the company and scanned copy to be attached with the form”

a. Amendment in 3.1 is for the purpose of convenience and widening the scope.

b. Amendment in 3.2 is to provide that the copy of death certificate shall be attested by the claimant.

c. Amendment in 3.4 is to clarify that the original share certificate shall be sent to the company also scanned copy of the same shall be attached with the form.

6 Substitution, Insertion: Schedule II under heading, “Documents to be submitted to the Authority to register transmission of securities”, under sub-heading “A. Documentary requirement for securities held in physical mode” in item 4, under the heading, “Where the shares are held jointly without nomination, the following documents in addition to the documents specified at paragraph 3 are required” 

(a) in sub-item 4.2, for clause (a), the following shall be substituted

“Succession certificate or probate of will or will or letter of administration or Decree, as may be applicable in terms of Indian Succession Act, 1925. (39 of 1925) or any other Decree or Order of any Court or Tribunal”.

(b) for sub-item, 4.3, the following shall be substituted, namely: –

“For value of securities more than 5,00,000 (Rupees Five lakh only) per issuer company as on date of application: Succession certificate or probate of will or will or letter of administration or Decree, as may be applicable in terms of Indian Succession Act, 1925. (39 of 1925) or any other Decree or Order of any Court or Tribunal.”.

(c) after sub-item 4.3 and before sub-heading ‘B’, the following explanation shall be inserted, namely: –

“Explanation: (1) The Company may enhance the limit of Rs. 5,00,000 (Rupees Five lakh only) per issuer company in accordance with SCHEDULE VII of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, after taking approval of its Board of Directors and provide copy of Board resolution to Authority at the time of verification of claim.

(2) for the case where will is provided, following documents shall also be required:

(a) Legal heirship certificate issued by Competent Authority;

(b) No Objection Certificate from all legal heirs in favor of the claimant;

(c) Affidavit from witness about confirmation of will wherever alive or death certificate of such witness;

(d) Affidavit with regard to the will as last will and no matter is pending before any court with regard to such will;

(e) Surety affidavit by at least two sureties with their PAN Card.

a. Self-explanatory.

Amended provision:

Succession certificate or probate of will or will or letter of administration or court Decree, as may be applicable in terms of Indian Succession Act, 1925. (39 of 1925) or any other Decree or Order of any Court or Tribunal.

b. Amendment in 4.3 is to bring it in line with the amendments made in 4.2.

c. Insertion of explanation after 4.3 is self-explanatory.

7 Substitution: Schedule II under heading, “Documents to be submitted to the Authority to register transmission of securities”, under sub-heading “B. Documentary requirement for securities held in DEMAT mode” in item 1, under the heading, “Where the shares are held singly with nomination” 

(a) in sub-item 1.1, for the word, “nominee”, the word, “claimant” shall be substituted;

(b) for sub-item 1.2, the following shall be substituted, namely: –

“Copy of death certificate of security holder attested by claimant.”

(c) for sub-item 1.4, the following shall be substituted, namely: –

“Copy of transaction statement duly attested by Claimant”

a. Amendment in 1.1 is for the purpose of convenience and widening the scope.

b. Amendment in 1.2 is to provide that the copy of death certificate shall be attested by the claimant.

c. Amendment in 1.4 is to provide that the copy of transaction statement shall be duly attested by Claimant. In the existing provisions, the requirement was to get it certified by Depository Participant.

8 Substitution, Insertion: Schedule II under heading, “Documents to be submitted to the Authority to register transmission of securities”, under sub-heading “B. Documentary requirement for securities held in DEMAT mode” in item 2, under the heading, “Where the shares are held singly without nomination, the following documents in addition to the documents specified at paragraph 1 are required” 

(a) in sub-item 2.2, for clause (a), the following shall be substituted

“Succession certificate or probate of will or will or letter of administration or Decree, as may be applicable in terms of Indian Succession Act, 1925. (39 of 1925) or any other Decree or Order of any Court or Tribunal”.

(b) for sub-item, 2.3, the following shall be substituted, namely: –

“For value of securities more than 5,00,000 (Rupees Five lakh only) per issuer company as on date of application: Succession certificate or probate of will or will or letter of administration or Decree, as may be applicable in terms of Indian Succession Act, 1925. (39 of 1925) or any other Decree or Order of any Court or Tribunal.”.

(c) after sub-item 2.3 and before item 3, the following explanation shall be inserted, namely: –

“Explanation: (1) The Company may enhance the limit of Rs. 5,00,000 (Rupees Five lakh only) per issuer company in accordance with SCHEDULE VII of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, after taking approval of its Board of Directors and provide copy of Board resolution to Authority at the time of verification of claim.

(2) for the case where will is provided, following documents shall also be required:

(a) Legal heirship certificate issued by Competent Authority;

(b) No Objection Certificate from all legal heirs in favor of the claimant;

(c) Affidavit from witness about confirmation of will wherever alive or death certificate of such witness;

(d) Affidavit with regard to the will as last will and no matter is pending before any court with regard to such will;

(e) Surety affidavit by at least two sureties with their PAN Card.

a. Self-explanatory.

Amended provision:

Succession certificate or probate of will or will or letter of administration or court Decree, as may be applicable in terms of Indian Succession Act, 1925. (39 of 1925) or any other Decree or Order of any Court or Tribunal.

b. Amendment in 2.3 is to bring it in line with the amendments made in 2.2 clause (a).

c. Insertion of explanation after 2.3 is self-explanatory.

9 Substitution: Schedule II under heading, “Documents to be submitted to the Authority to register transmission of securities”, under sub-heading “B. Documentary requirement for securities held in DEMAT mode” in item 3, under the heading “Where the shares are held jointly with nomination”

(a) in sub-item 3.1, for the word, “nominee”, the word, “claimant” shall be substituted;

(b) for sub-item 3.2, the following shall be substituted, namely: –

“Copy of death certificate of security holder attested by claimant.”

(c) for sub-item 3.4, the following shall be substituted, namely: –

“Copy of transaction statement duly attested by Claimant”

a. Amendment in 3.1 is for the purpose of convenience and widening the scope.

b. Amendment in 3.2 is to provide that the copy of death certificate shall be attested by the claimant.

c. Amendment in 3.4 is to provide that the copy of transaction statement shall be duly attested by Claimant. In the existing provisions, the requirement was to get it certified by Depository Participant.

10 Substitution, Insertion: Schedule II under heading, “Documents to be submitted to the Authority to register transmission of securities”, under sub-heading “B. Documentary requirement for securities held in DEMAT mode” in item 4, under the heading, “Where the shares are held jointly without nomination, the following documents in addition to the documents specified at paragraph 3 are required” 

(a) in sub-item 4.2, for clause (a), the following shall be substituted

“Succession certificate or probate of will or will or letter of administration or Decree, as may be applicable in terms of Indian Succession Act, 1925. (39 of 1925) or any other Decree or Order of any Court or Tribunal”.

(b) for sub-item, 4.3, the following shall be substituted, namely: –

“For value of securities more than 5,00,000 (Rupees Five lakh only) per issuer company as on date of application: Succession certificate or probate of will or will or letter of administration or Decree, as may be applicable in terms of Indian Succession Act, 1925. (39 of 1925) or any other Decree or Order of any Court or Tribunal.”.

(c) after sub-item 4.3 and before Schedule III, the following explanation shall be inserted, namely: –

“Explanation: (1) The Company may enhance the limit of Rs. 5,00,000 (Rupees Five lakh only) per issuer company in accordance with SCHEDULE VII of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, after taking approval of its Board of Directors and provide copy of Board resolution to Authority at the time of verification of claim.

(2) for the case where will is provided, following documents shall also be required:

(a) Legal heirship certificate issued by Competent Authority;

(b) No Objection Certificate from all legal heirs in favor of the claimant;

(c) Affidavit from witness about confirmation of will wherever alive or death certificate of such witness;

(d) Affidavit with regard to the will as last will and no matter is pending before any court with regard to such will;

(e) Surety affidavit by at least two sureties with their PAN Card.

a. Self-explanatory.

Amended provision:

Succession certificate or probate of will or will or letter of administration or court Decree, as may be applicable in terms of Indian Succession Act, 1925. (39 of 1925) or any other Decree or Order of any Court or Tribunal.

b. Amendment in 4.3 is to bring it in line with the amendments made in 4.2.

c. Insertion of explanation after 4.3 is self-explanatory.

11 Substitution, Omission: Schedule III under the heading, “Documents to be submitted to the Authority in case of loss of securities held in physical mode”

(i) in item 1, for the word, “Notarized”, the word, “Self-attested”, shall be substituted;

(ii) in item 2, the words, “value equal to market value that of shares as on date of execution”, shall be omitted;

(iii) in item 4, for letters, figures and symbols, “Rs 10,000”, the letters, figures and symbols, “Rs 5,00,000” shall be substituted.

i. Now, in case of loss of securities held in physical mode, the shareholder can submit self-attested copy of FIR/ Police Compliant instead of a notarized copy.

ii. In the existing provisions, it was required to submit Surety Affidavit of value equal to market value that of shares as on date of execution but with the advent of this amendment, the Surety Affidavit needs not to be of the afore-mentioned value.

iii. Earlier, it was required to give an advertisement in at least one English language national daily newspaper having nationwide circulation and in one regional language daily newspaper published in the place of registered office of company, if the market value of the shares was greater than ₹10,000, which is now increased to ₹5 lakhs. This amendment is for the benefit of small shareholders.

12 Omission, Insertion: Schedule IV, under the heading, “Procedure to be followed while disposing the claims”, in item 2

(i) sub-item (iv) shall be omitted;

(ii) in sub-item (ix), the words, “verification of transaction statement of the unclaimed suspense account of the company. At any point of time, details of every investor whose shares have been transferred from unclaimed suspense account, may be called from depository.” shall be omitted. 

(iii) in sub-item (x), after letters, symbols, figures and words, “IEPF-1 or INV-1 or IEPF-1A” and before the symbol, “.”, the word, letters, symbol and figure, “or IEPF-7” shall be inserted.

Self- explanatory

i. Omitted provision:

Affidavit and other supporting documents for change or variations in address in various documents, share certificates, current address and address recorded in share certificate or Form No. IEPF – 4 or other places.

ii. Amended provision:

Matching of CML of unclaimed suspense account in case the transfer of shares has taken place from the unclaimed suspense account from the company. Verification of transaction statement of the unclaimed suspense account of the company. At any point of time, details of every investor whose shares have been transferred from unclaimed suspense account, may be called from depository.

iii. Amended provision:

The details of amount due to the claimant are to be verified from e form IEPF-1 or INV-1 or IEPF-1A or IEPF-7. In case of non- availability of the data in MCA system, proportionate deductions in the refund amount can be made

MINISTRY OF CORPORATE AFFAIRS
NOTIFICATION
New Delhi, the 9th November, 2021

G.S.R.785(E).In exercise of the powers conferred under sub-sections (1), (2), (3), (4), (8), (9), (10) and (11) of section 125 and sub-section (6) of section 124 read with section 469 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following rules, further to amend the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016, namely:-

1. (1) These rules may be called the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Second Amendment Rules, 2021.

(2) These rules shall come into force on the date of their publication in Official Gazette.

In the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016, (hereinafter referred to as the Principle Rules), in rule 7, in sub-rule (7), in the proviso, the words “Advance Receipts”, shall be omitted.

3 In the Principal Rules, in Schedule II, –

(1) for the words, figures and bracket, “Rs 2,00,000 (Rupees Two Lakh only),” wherever occurring, Rs 5,00,000 (Rupees five lakh only), shall be substituted.

(2) under heading, “Documents to be submitted to the Authority to register transmission of securities”, under sub-heading “ A. Documentary requirement for securities held in physical mode”,-

(i) in item 1, under the heading, “Where the shares are held singly with nomination,-

(a) in sub-item ‘1’, for the word, “nominee”, the word, “claimant” shall be substituted;

(b) for sub-item ‘2’, the following shall be substituted, namely: – “Copy of death certificate of security holder attested by claimant.”

(c) for sub-item ‘4’, the following shall be substituted, namely: –

“The original share certificate is to be sent to the company and scanned copy to be attached with the form”.

(ii) in item 2, under the heading, “Where the shares are held singly without nomination, the following documents in addition to the documents specified at paragraph 1 are required,”-

(a) in sub-item’2.2′, for clause (a), the following shall be substituted, –

“Succession certificate or probate of will or will or letter of administration or Decree, as may be applicable in terms of Indian Succession Act, 1925. (39 of 1925) or any other Decree or Order of any Court or Tribunal”.

(b) for sub-item, ‘2.3’, the following shall be substituted, namely: –

“For value of securities more than 5,00,000 (Rupees Five lakh only) per issuer company as on date of application: Succession certificate or probate of will or will or letter of administration or Decree, as may be applicable in terms of Indian Succession Act, 1925. (39 of 1925) or any other Decree or Order of any Court or Tribunal.”.

(c) after sub-item ‘2.3’ and before item ‘3’, the following explanation shall be inserted, namely: –

“Explanation: (1) The Company may enhance the limit of Rs. 5,00,000 (Rupees Five lakh only) per issuer company in accordance with SCHEDULE VII of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, after taking approval of its Board of Directors and provide copy of Board resolution to Authority at the time of verification of claim.

(2) for the case where will is provided, following documents shall also be required:

(a) Legal heirship certificate issued by Competent Authority;

(b) No Objection Certificate from all legal heirs in favor of the claimant;

(c) Affidavit from witness about confirmation of will wherever alive or death certificate of such witness;

(d) Affidavit with regard to the will as last will and no matter is pending before any court with regard to such will;

(e) Surety affidavit by at least two sureties with their PAN Card.”.

(iii) in item ‘3’, under the heading “Where the shares are held jointly with nomination”, –

(a) in sub-item „3.1‟, for the word, “nominee”, the word, “claimant” shall be substituted;

(b) for sub-item „3.2‟, the following shall be substituted, namely: –

“Copy of death certificate of security holder attested by claimant.”

(c) for sub-item „3.4‟, the following shall be substituted, namely: –

“The Original share certificate is to be sent to the company and scanned copy to be attached with the form”.

(iv) in item ‘4’, under the heading, “Where the shares are held jointly without nomination, the following documents in addition to the documents specified at paragraph 3 are required”,-

(a) for sub-item ‘4.2’, the following shall be substituted, –

“Succession certificate or probate of will or will or letter of administration or Decree, as may be applicable in terms of Indian Succession Act, 1925. (39 of 1925) or any other Decree or Order of any Court or Tribunal”.

(b) for sub-item ‘3’, the following shall be substituted, namely: –

“For value of securities more than 5,00,000 (Rupees Five lakh only) per issuer company as on date of application: Succession certificate or probate of will or will or letter of administration or Decree, as may be applicable in terms of Indian Succession Act, 1925. (39 of 1925) or any other Decree or Order of any Court or Tribunal.”.

(c) after sub-item ‘3’, and before sub-heading ‘B’ the following explanation shall be inserted, namely: –

“Explanation: (1) The Company may enhance the limit of Rs. 5,00,000 (Rupees Five lakh only) per issuer company in accordance with SCHEDULE VII of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, after taking approval of its Board of Directors and provide copy of Board resolution to Authority at the time of verification of claim.

(2) for the case where will is provided, following documents shall also be required:

(a) Legal heirship certificate issued by Competent Authority;

(b) No Objection Certificate from all legal heirs in favor of the claimant;

(c) Affidavit from witness about confirmation of will wherever alive or death certificate of such witness;

(d) Affidavit with regard to the will as last will and no matter is pending before any court with regard to such will;

(e) Surety affidavit by at least two sureties with their PAN Card.”.

3. In the Principal Rules, in Schedule II, under heading, “Documents to be submitted to the Authority to register transmission of securities”, under sub-heading “B. Documentary requirement for securities held in DEMAT mode”,-

(i) in item ‘1’: –

(a) in sub-item „1.1‟ for the word, “nominee”, the word, “claimant” shall be substituted;

(b) for sub-item „1.2‟, the following shall be substituted, namely: –

“Copy of death certificate of security holder attested by claimant.”

(c) for sub-item „1.4‟, the following shall be substituted, namely: –

“Copy of transaction statement duly attested by Claimant.”.

(ii) in item ‘2’, –

(a) in sub-item‟2.2‟, for clause (a), the following shall be substituted, –

“Succession certificate or probate of will or will or letter of administration or Decree, as may be applicable in terms of Indian Succession Act, 1925. (39 of 1925) or any other Decree or Order of any Court or Tribunal”.

(b) for sub-item, ‘3’, the following shall be substituted, namely: –

“For value of securities more than 5,00,000 (Rupees Five lakh only) per issuer company as on date of application: Succession certificate or probate of will or will or letter of administration or Decree, as may be applicable in terms of Indian Succession Act, 1925. (39 of 1925) or any other Decree or Order of any Court or Tribunal.”.

(c) after sub-item ‘3’ and before item ‘3’, the following explanation shall be inserted, namely: –

“Explanation: (1) The Company may enhance the limit of Rs. 5,00,000 (Rupees Five lakh only) per issuer company in accordance with SCHEDULE VII of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, after taking approval of its Board of Directors and provide copy of Board resolution to Authority at the time of verification of claim.

(2) for the case where will is provided, following documents shall also be required:

(a) Legal heirship certificate issued by Competent Authority;

(b) No Objection Certificate from all legal heirs in favor of the claimant;

(c) Affidavit from witness about confirmation of will wherever alive or death certificate of such witness;

(d) Affidavit with regard to the will as last will and no matter is pending before any court with regard to such will;

(e) Surety affidavit by at least two sureties with their PAN Card.”.

(iii) in item ‘3’, –

(a) in sub-item „3.1‟ for the word, “nominee”, the word, “claimant” shall be substituted;

(b) for sub-item „3.2‟, the following shall be substituted, namely: –

“Copy of death certificate of security holder attested by claimant.”

(c) for sub-item „3.4‟, the following shall be substituted, namely: –

“Copy of transaction statement duly attested by Claimant.”.

(iv) in item ‘4’, –

(a) in sub-item ‘4.2’, for clause (a), the following shall be substituted, –

“Succession certificate or probate of will or will or letter of administration or Decree, as may be applicable in terms of Indian Succession Act, 1925. (39 of 1925) or any other Decree or Order of any Court or Tribunal”.

(b) for sub-item ‘3’, the following shall be substituted, namely: –

“For value of securities more than 5,00,000 (Rupees Five lakh only) per issuer company as on date of application: Succession certificate or probate of will or will or letter of administration or Decree, as may be applicable in terms of Indian Succession Act, 1925. (39 of 1925) or any other Decree or Order of any Court or Tribunal.”.

(c) after sub-item ‘3’, and before Schedule III, the following explanation shall be inserted, namely: –

“Explanation: (1) The Company may enhance the limit of Rs. 5,00,000 (Rupees Five lakh only) per issuer company in accordance with SCHEDULE VII of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, after taking approval of its Board of Directors and provide copy of Board resolution to Authority at the time of verification of claim.

(2) for the case where will is provided, following documents shall also be required:

(a) Legal heirship certificate issued by Competent Authority;

(b) No Objection Certificate from all legal heirs in favor of the claimant;

(c) Affidavit from witness about confirmation of will wherever alive or death certificate of such witness;

(d) Affidavit with regard to the will as last will and no matter is pending before any court with regard to such will;

(e) Surety affidavit by at least two sureties with their PAN Card.”.

4. in the Principal Rules, in Schedule III, under the heading, “Documents to be submitted to the Authority in case of loss of securities held in physical mode”, –

(i) in item „1‟, for the word, “Notarised”, the word, “Self attested”, shall be substituted;

(ii) in item „2‟, the words, “value equal to market value that of shares as on date of execution”, shall be omitted;

(iii) in item „4‟, for letters, figures and symbols, “Rs 10,000”, the letters, figures and symbols, “Rs 5,00,000” shall be substituted.

5. in the Principal Rules , in Schedule IV, under the heading, “ Procedure to be followed while disposing the claims”, in item ‘2’, –

(i) sub-item (iv) shall be omitted;

(ii) in sub-item (ix), the words, “verification of transaction statement of the unclaimed suspense account of the company. At any point of time, details of every investor whose shares have been transferred from unclaimed suspense account, may be called from depository.” shall be omitted.

(iii) in sub-item (x), after letters, symbols, figures and words, “IEPF-1 or INV-1 or IEPF-1A” and before the symbol, “.”, the word, letters, symbol and figure, “or IEPF-7” shall be inserted.

6. in the Principal Rules, for the Form No. IEPF-5, the following Form shall be substituted:-

Download Full Text FORM NO. IEPF-5  PDF

[F. No. 05/1/2021-IEPF]

MANOJ PANDEY, Jt. Secy.

Note: The principal rules were published in the Gazette of India vide number G.S.R. 854 (E), dated the 5th September, 2016 and amended vide notification number G.S.R. 178(E) dated 28th February, 2017, G.S.R. 1267 (E) dated 13th October, 2017, G.S.R. 472 (E) dated 22.05.2018, G.S.R. 343(E) dated 1st May, 2019, G.S.R. 371(E) dated 14th August, 2019 and G.S.R. 396(E) dated 09th June, 2021.

*****

MINISTRY OF CORPORATE AFFAIRS

CORRIGENDUM

New Delhi, the 12th November, 2021

G.S.R. 791(E).—In the notification of the Government of India in the Ministry of Corporate Affairs number G.S.R. 785(E), dated the 09th November, 2021, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), dated the 09th November, 2021, at page 9, in the English version, in line 9, for “sub-rule (7)”, read “sub-rule (2)”.

[F. No. 05/1/2021-IEPF]
MANOJ PANDEY, Jt. Secy.

*****

Disclaimer: The author is based in Jabalpur and is a Practicing Company Secretary dealing in Corporate, Legal & Taxation services. The information contained in this write up, as provided by the author, is to provide a general guidance to the intended user. The information should not be used as a substitute for specific consultations. Author recommends that professional advice is sought before taking any action on specific issues.

The author can also be reached at [email protected]

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