IPEF Authority (Accounting, Audit, Transfer and Refund) 2nd Amendment Rules 2019. Forms IPEF 1 to 5 notified

Investor Education & Protection Fund Authority (Accounting, Audit, Transfer and Refund) 2nd Amendment Rules 2019

MINISTRY OF CORPORATE AFFAIRS

NOTIFICATION

New Delhi, the 14th August, 2019

G.S.R. 571(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, 2019.

(2) The provisions of these rules, Other than rule 6 (i), 6 (iv), 6 (v), 6(vi), 6(vii) and 6 (viii), shall come into force with effect from the 20th day of August, 2019.

(3) The provisions of rule 6 (i), 6 (iv), 6 (v), 6(vi), 6(vii) and 6 (viii), shall come into force with effect from the 20th day of September, 2019.

2. In the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016, (hereinafter referred to as the principle rules), in rule 2,-

(i) in sub-rule (1), in clause (d), after the words “and includes any other entity which is required to transfer any fund to the Investor Education and Protection Fund in accordance with any Act or statute governing it” , the words “and any transferee company in respect of the assets and liabilities of transferor company” shall be inserted ;

(ii) in sub-rule (1), in clause (da), for the word “namely”, the word “including” shall be substituted ;

(iii) in sub-rule (1), clause (g) shall be omitted.

3. In the principal rules, in rule 3,-

(i) in sub-rule (4), in clause (a), the words, brackets and letter “except clause (g)” shall be omitted;

(ii) in sub-rule (4), in clause (b), in sub-clause (ii), after the words “State Government”, the words “ the Central Government” shall be inserted.

4. In the principal rules, in rule 5,-

(i) for sub-rule (1), the following sub-rule shall be substituted, namely:-

“(1) Any amount required to be credited by the companies to the Fund as provided under clauses (a) to (n) of sub-section (2) of section 125 of the Act shall be remitted online along with a Statement in Form No. IEPF 1 containing details of such transfer to the Authority within a period of thirty days of such amounts becoming due to be credited to the Fund.” ;
(ii) sub-rules (2), (3) and (4) shall be omitted ;

(iii) After sub-rule (4),the following sub-rule shall be inserted, namely:-

“(4A) The companies which have transferred any amount referred to in clauses (a) to (d) of sub-section (2) of section 205C of the Companies Act, 1956 (1 of 1956) to Investor Education and Protection Fund or Central Government, but have not filed the statement or have filed the statement in any format other than in excel template, as required under sub-rule (1) of rule 5, shall submit details mentioned in sub-rule (1) of rule 5 in Form No. IEPF – 1A along with excel template within sixty days of notification of these amended rule.”;

(iv) in sub-rule (6), for clause (c), the following clause shall be substituted, namely:-

“(c) The company shall maintain the record filed under sub – rule (1) in the same format along with all supporting documents and the Authority shall have the powers to inspect such records.”;

(v) for sub-rule (8), the following sub-rule shall be substituted, namely:-

“(8) Every company shall within a period of sixty days after the holding of Annual General Meeting or the date on which it should have been held as per the provisions of section 96 of the Act, whichever is earlier and every year thereafter till completion of the seven years period, identify the unclaimed amounts, as referred in subsection (2) of section 125 of the Act, as on the date of closure of financial year the account of which are to be adopted in the Annual General Meeting as per sub-section (1) of section 137 of the Act, separately furnish and upload on its own website and also on website of Authority or any other website as may be specified by the Government, a statement or information of unclaimed and unpaid amounts separately for each of the previous seven financial years through Form No. IEPF-2, containing following information, namely:-

(a) the names and last known addresses of the persons entitled to receive the sum;
(b) the nature of amount;
(c) the amount to which each person is entitled;
(d) the due date for transfer into the Investor Education and Protection Fund; and
(e) such other information as may be considered necessary”.

5. In the Principle rules, in rule 6-

(i) in sub-rule (1), in the first proviso, after the worlds “any dividend warrant”, the words “or any dividend amount has been credited to bank account of the owner of such shares” shall be inserted;

(ii) in sub-rule (1), after third proviso, the following Explanation shall be inserted, namely:-

“Explanation.- For removal of all doubts, it is hereby clarified that all shares in respect of which dividend has been transferred to Investor Education and Protection Fund on or before the 7th September 2016, shall also be transferred by the company in the name of Investor Education and Protection Fund”;

(iii) for sub-rule (5) the following sub-rule shall be substituted, namely:-

“(5) While effecting such transfer, the company shall send a statement to the Authority in Form No. IEPF-4 within thirty days of the corporate action taken under clause (c) of sub-rule (3) of rule 6 containing details of such transfer and the company shall also attach a copy of the public notice published under clause (a) of sub-rule (3) of rule 6 in Form No IEPF-4.”.

(iv) for sub-rule (7), the following sub-rule shall be substituted, namely:-

“(7)The company shall maintain all such statements filed under sub – rule (5) in the same format along with all supporting documents and the Authority shall have the powers to inspect such records.”;

(v) for sub-rule (8), the following sub-rule shall be substituted, namely:-
“(8) All benefits accruing on such shares like bonus shares, split, consolidation, fraction shares and the like except right issue shall also be credited to such DEMAT account [by the company which shall send a statement to the Authority in Form No. IEPF-4 within thirty days of the corporate action containing details of such transfer.]”.

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Schedule II – Documents to be submitted to the Authority to register transmission of securities

Schedule III – Documents to be submitted to the Authority in case of loss of securities held in physical mode.

Schedule IV Procedure to be followed while disposing the claims

FORM NO. IEPF-1 Statement of amounts credited to Investor Education and Protection Fund

FORM NO.IEPF-1A Statement of amounts credited to Investor Education and Protection Fund

FORM NO. IEPF-2 Statement of unclaimed and unpaid amounts and details of Nodal Officer

FORM NO. IEPF-4 Statement of shares transferred to the Investor Education and Protection Fund

FORM NO. IEPF-5 Application to the Authority for claiming unpaid amounts and shares out of Investor Education and Protection Fund (IEPF)

[F. No. 05/02/2019-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 and G.S.R. 343(E) dated 1st May, 2019.

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