MCA has amended the IEPF Authority (Accounting, Audit, Transfer and Refund) Rules, 2016, to provide the following amendments:
1. A legal heir certificate issued by a Tahsildar or higher authority may be obtained, in place of succession certificate, probate of will, will, letter of administration, or court/tribunal order in all cases. Such legal heir certificate must be accompanied with a notarized indemnity bond from the claimant and a NOC from other legal heirs, confirming they have relinquished their rights.
2. When submitting a copy of the Will, the claimant must provide a notarized indemnity bond instead of Legal heirship certificate issued by Competent Authority, NOC from all legal heirs, affidavit from a witness confirming the Will, affidavit stating it is the last Will with no pending court matters, and surety affidavits from two individuals with their PAN cards.
3. Threshold for categorization of documentation has been increased from Rs. 5 lakh to Rs. 15 lakh in case securities held in DEMAT mode.
4. The applicant must quantify the value of listed securities based on the closing price one day prior to the application on a recognized stock exchange. For unlisted securities, the value should be based on the higher of the face or maturity value.
5. In case of loss of securities held in physical mode:
- The requirement of surety affidavit has been done away with;
- A self-attested copy of the FIR or police complaint will only be required if the market value of the shares exceeds Rs. five lakh; and
- Copy of advertisement will be required in a widely circulated newspaper instead of two newspapers (English & Regional language newspapers).
6. Mandatory contingency insurance for companies to cover risks arising from verification reports submitted to IEPF authority.