Government has removed the requirement for filing an FIR for claims of share certificates valued up to ₹5 lakh. Instead, claims are processed based on an e-verification report submitted by the respective companies to the Investor Education and Protection Fund Authority (IEPFA). Companies must adhere to a uniform document set mandated under Schedule II of the IEPFA Rules, ensuring prompt recognition of legal heir certificates without imposing additional conditions. To ensure authenticity for duplicate physical security certificates, the IEPFA relies on e-verification reports from companies. These measures aim to streamline claim processes while ensuring claimant genuineness and entitlement under the amended IEPFA Rules, 2016.
GOVERNMENT OF INDIA
MINISTRY OF CORPORATE AFFAIRS
LOK SABHA
UNSTARRED QUESTION NO. 1051
ANSWERED ON MONDAY THE 10TH FEBRUARY, 2025
AUTHENTICITY OF AN APPLICANT CLAIMING SHARE/SECURITY CERTIFICATES
QUESTION
1051. Smt. Kriti Devi Debbarman:
Shri Chavda Vinod Lakhamshi:
Shri Anurag Sharma:
Will the Minister of CORPORATE AFFAIRS
be pleased to state:
(a) whether the condition of FIR has been removed for Share Certificates upto the value of Rs. 5 lakh;
(b) if so, the alternative measures taken to certify such claims;
(c) the steps being taken by the companies to recognise and accept legal heirs certificates without any delay or imposing additional conditions; and
(d) the measures being implemented to certify authenticity of applicants applying for duplicate physical security certificates subsequent to removal of the condition of security deposits/surety requirements?
ANSWER
MINISTER OF STATE OF THE MINISTRY OF CORPORATE AFFAIRS AND MINISTRY OF ROAD TRANSPORT AND HIGHWAYS
(HARSH MALHOTRA)
(a) & (b): Yes, Sir. The Investor Education and Protection Fund Authority (IEPFA) processes such claims based upon the e-verification report filed by the companies.
(c): A uniform set of documents has been mandated under Schedule II of Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016, as amended from time to time, for companies to recognize and accept legal heirs certificates without any delay or imposing additional conditions.
(d); The IEPFA processes the claims based upon the e-verification report filed by the companies. As per Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016, as amended from time to time, the companies are liable under all circumstances to verify the genuineness and entitlement of the claimant.
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this is great relief and news BUT the RTA are still demanding additional papers on stamp papers. Also when a claimant is sole surviving legal heir as per hindu act then why are Registrar and Transfer agents keep on asking for sucession ,legal heir certificate. Also WHY IS RATION CARD NOT BEING ACCEPTED AS PROOF OF FAMILY. LASTLY WHO IS TO HBE HELD GUILTY FOR DUPLICATE SHARES WHEN COMPANY /RTA both have not issued communications to investor