Procedure of transfer of shares to IEPF Authority. The Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Amendment Rules, 2021.
MCA has notified the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Amendment Rules, 2021.
Under section 90 of the Companies Act 2013, every individual who holds beneficial interests, of not less than twenty-five per cent in shares of a company or the right to exercise, or the actual exercising of significant influence or control over the company (namely significant beneficial owner) is required to make a declaration to the company, specifying the nature of his interest and other prescribed particulars.
Further company is required to give notice calling prescribed information to any person whom it believes to be a significant beneficial owner of the company.
On failure of such individual to give satisfactory information as required, the company may apply to the Tribunal for an order directing that the shares in question be subject to restrictions with regard to transfer of interest, suspension of all rights attached to the shares and such other matters and the Tribunal may pass such order.
The company or the person aggrieved by the order of the Tribunal may make an application to the Tribunal for relaxation or lifting of the restrictions placed.
However if no such application is filed within one year such shares shall be transferred to the Investor Education and Protection Fund (IEPF) created by the Central Government under section 125 of the Companies Act, 2013 for the promotion of investors’ awareness and protection of the interests of investors.
A new Rule 6A has been notified prescribing manner and procedure of transfer of shares under sub-section (9) of section 90 of the Act to the Fund.
While effecting such transfer, the company shall send a statement to the IEPF Authority in Form No. IEPF-4. 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 by sending a statement to the Authority in Form No. IEPF-4. Any amount required to be credited by the companies to the Fund shall be remitted into the specified account of the IEPF Authority maintained in the Punjab National Bank and the details thereof shall be furnished to the Authority in Form No. IEPF-7
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