Tag Archives: Investor Education and Protection Fund Authority

REFUND OR RECLAIM FROM IEPF


Ministry of Corporate Affairs amended the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016. The Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Second Amendment Rules, 2019 rules published in Official Gazette on 14th August 2019. In this post, we will discuss amended provisions related to refund of such amount and shares related to unpaid dividend transferred to the Investor Education and Protection Fund Authority. Amendment relevant to this post comes into effect with effect from 20th September 2019 except fraudulent claim and deceitful impersonation related provisions under Rule 7(11) which came into effect on 20th August 2019.

Continue reading

Advertisements

EFFECT OF TRANSFER OF SHARES TO IEPF


Sub – Section (6) of Section 124 mandates transfer of all shares in respect of which dividend has not been paid or claimed for seven consecutive years or more in the name of Investor Education and Protection Fund along with a statement containing such details as prescribed. Rule 5 of the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 prescribe the manner of such credit.  We discussed procedure amended with effect from 20th August 2019 in the last post here. In this post, we will discuss the post-transfer effects and procedures.

Continue reading

TRANSFER OF SHARES RELATED TO UNPAID DIVIDEND


Sub – Section (6) of Section 124 mandates transfer of all shares in respect of which dividend has not been paid or claimed for seven consecutive years or more in the name of Investor Education and Protection Fund along with a statement containing such details as prescribed. Rule 5 of the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 prescribe the manner of such credit.  The procedure is now amended with effect from 20th August 2019.

Continue reading

CREDIT OF CERTAIN AMOUNTS TO IEPF


Section 124 of the Companies Act, 2013 and other provisions of laws mandates credits of certain amounts to the Investor Education and Protection Fund (IEPF). Rule 5 of the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 prescribe the manner of such credit.  The procedure is now amended with effect from 20th August 2019. We will discuss the updated process which is more logical and easy to comply.

Continue reading

COMPANY UNDER IEPF RULES


Since the introduction of Investor Education and Protection Fund (IEPF) in the year 2001, I have a keen interest in the law related to investor protection, particularly under the Companies Law. Presently, one of the significant but neglected features of the IPEF Rules is the definition of the Company. The definition has been amended several times to keep track of silent changes of several laws without much notice of the stakeholder.

Continue reading

ISSUE OF SECURITIES IN DEMATERIALISED FORM BY UNLISTED PUBLIC COMPANIES


Ministry of Corporate Affairs earlier brought into existence a new rule with effect from 10th September 2019 which mandates the issue of new securities by unlisted public companies in dematerialised form. These rules also placed restrictions on the transfer of existing securities in dematerialised form only. Judicially it is a welcome to step to reduce the burden of courts and partially it is an additional cost. The rule was amended twice since its inception. Let us discuss.

The government inserted a new Rule 9A to the Companies (Prospectus and Allotment of Securities) Rules, 2014 vides notification G.S.R. 853(E) dated 10th September 2019. The Rule came into effect with effect from 2nd October 2018. With recent amendment vide Notification G.S.R. 376(E) dated 22nd May 2019 introduced a half yearly return called Reconciliation of Share Capital Audit Report (Half-yearly).

Continue reading

INVESTOR EDUCATION AND PROTECTION FUND AUTHORITY


Investor Education and Protection Fund Authority established under Section 125(5) of the Companies Act, 2013 is an authority to administer for administration of Investor Education and Protection Fund established under Section 125(1) of the Act. Operating provisions of Section 125 are not force, but recently a Notification S.O. 125(E) dated 13th January 2016 notified part of this Section to be effective with effect from 13th January 2016. Consequently, Ministry of Corporate Affairs also put a draft notification for the Investor Education and Protection Fund Authority (Appointment of Chairperson and Members, holding of meetings and provision for offices and officers) Rules, 2016. In this post, we discuss the Notification and these Rules.

Continue reading