MCA vide Notification dated October 13, 2017, has amended the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 w.e.f. 13.10.2017.
Key Highlights of the IEPF (Accounting, Audit, Transfer and Refund) Second Amendment Rules, 2017:-
- Due date of transfer of shares shall be deemed to be 31st October, 2017
- Company shall follow the procedure for transmission of shares instead of transfer of shares
- In case of non-compliance done by companies, IEPF Authority shall submit its report to the Central Government
- Every company shall nominate a Nodal Officer for the purpose of coordination with IEPF Authority
- IEPF Authority may reject Form IEPF-5, after giving an opportunity to the claimant to furnish response
In cases where the period of seven years provided under section 124(5) has been completed or being completed during the period from 7th September, 2016 to 31st October, 2017, the due date of transfer of such shares shall be deemed to be 31st October, 2017.
Transfer of shares by the companies to IEPF shall be deemed to be transmission of shares and the procedure to be followed for transmission of shares shall be followed by the companies while transferring the shares to IEPF.
For the purposes of effecting the transfer of shares held in physical form:
|1.||The Company Secretary or the person authorised by the Board shall make an application, on behalf of the concerned shareholder, to the company, for issue of a new certificate;|
|2.||On receipt of the application, a new share certificate (in Form SH-1) for each shareholder shall be issued and it shall be stated on the face of the certificate that “Issued in lieu of share certificate No….. for the purpose of transfer to IEPF” and the same be recorded in the register maintained for the purpose;|
|3.||After issue of a new share certificate, the company shall inform the depository to convert the share certificates into DEMAT form and transfer in favour of the Authority|
IEPF Authority shall furnish its report to the Central Government as and when non-compliance of the IEPF rules by companies came to its knowledge.
Every company which has deposited the amount to the fund shall nominate a Nodal Officer for the purpose of coordination with IEPF Authority and communicate the contact details of the Nodal Officer duly indicating his or her designation, postal address, telephone and mobile number and company authorized e-mail ID to the IEPF Authority, within 15 days from the date of publication of these amendment rules and the company shall display the name of Nodal Officer and his e-mail ID on its website.
In case of non-receipt of report from the company or non-receipt of rectified documents by the IEPF Authority after the expiry of 90 days from the date of filing of Form IEPF-5, the IEPF Authority may reject Form IEPF-5, after giving an opportunity to the claimant to furnish response within a period of 30 days.
Form IEPF-5 is filed by Investor for the purpose of claiming the dividend or shares transferred to IEPF