{"id":249520,"date":"2021-06-10T10:29:20","date_gmt":"2021-06-10T04:59:20","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=249520"},"modified":"2021-06-10T10:29:20","modified_gmt":"2021-06-10T04:59:20","slug":"investor-education-and-protection-fund-authority-accounting-audit-transfer-and-refund-amendment-rules-2021","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2021\/06\/10\/investor-education-and-protection-fund-authority-accounting-audit-transfer-and-refund-amendment-rules-2021\/","title":{"rendered":"Investor Education and Protection Fund Authority (Accounting,  Audit, Transfer and Refund) Amendment Rules, 2021"},"content":{"rendered":"<p style=\"text-align: justify;\"><span dir=\"ltr\">The Central <\/span><span dir=\"ltr\">Government hereby makes the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Amendment Rules, 2021, further to amend the <a href=\"http:\/\/www.scconline.com\/DocumentLink\/aWc827gP\">Investor Education and <\/a><\/span><span dir=\"ltr\">Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016, namely<\/span><\/p>\n<p style=\"text-align: justify;\"><span dir=\"ltr\">The following shall be <\/span><span dir=\"ltr\">inserted in the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016, namely:- <\/span><\/p>\n<p>&nbsp;<\/p>\n<blockquote>\n<p style=\"text-align: justify;\"><span style=\"color: #008080;\"><span dir=\"ltr\">6A. Manner of transfer of shares under sub-section (9) of section 90 of the Act to the <\/span><span dir=\"ltr\">Fund.-<\/span><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #008080;\"><span dir=\"ltr\">(1) The shares shall be credited to DEMAT Account of the Authority to be opened <\/span><span dir=\"ltr\">by the Authority for the said purpose, within a period of thirty days of such shares <\/span><span dir=\"ltr\">becoming due to be transferred to the Fund: <\/span><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #008080;\"><span dir=\"ltr\">Provided that transfer of shares by the companies to the Fund shall be deemed to be <\/span><span dir=\"ltr\">transmission of shares and the procedure to be followed for transmission of shares shall be <\/span><span dir=\"ltr\">followed by the companies while transferring the shares to the fund: <\/span><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #008080;\"><span dir=\"ltr\">Provided further that such shares shall be transferred to the Authority without any <\/span><span dir=\"ltr\">restrictions and no application shall be filed for claiming back such shares from the <\/span><span dir=\"ltr\">Authority. <\/span><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #008080;\"><span dir=\"ltr\">(2) For the purposes of effecting transfer of such shares, the Board shall authorise the <\/span><span dir=\"ltr\">Company Secretary or any other person to sign the necessary documents. <\/span><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #008080;\"><span dir=\"ltr\">(3) The company shall follow the following procedure while transferring the shares, <\/span><span dir=\"ltr\"> namely:- <\/span><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #008080;\"><span dir=\"ltr\">(A) for the purposes of effecting the transfer, where the shares are dealt with in a <\/span><span dir=\"ltr\">depository- <\/span><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #008080;\"><span dir=\"ltr\">(i) the company shall inform the depository by way of corporate action, where the <\/span><span dir=\"ltr\">shareholders have their accounts for transfer in favour of the Authority, <\/span><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #008080;\"><span dir=\"ltr\"> (ii) on receipt of such intimation, the depository shall effect the transfer of shares in favour <\/span><span dir=\"ltr\">of DEMAT account of the Authority; <\/span><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #008080;\"><span dir=\"ltr\">(B) for the purposes of effecting the transfer of shares held in physical form- <\/span><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #008080;\"><span dir=\"ltr\">(i) the Company Secretary or the person authorised by the Board shall make <\/span><span dir=\"ltr\">an application, on behalf of the concerned shareholder, to the company, for issue of a new <\/span><span dir=\"ltr\">share certificate; <\/span><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #008080;\"><span dir=\"ltr\">(ii) on receipt of the application under clause (a), a new share certificate for each <\/span><span dir=\"ltr\">such shareholder shall be issued and it shall be stated on the face of the certificate that <\/span><span dir=\"ltr\"> \u201cIssued in lieu of share certificate No&#8230;.. for the purpose of transfer to IEPF under sub-<\/span><span dir=\"ltr\">section (9) of section 90 of the Act\u201d and the same be recorded in the register maintained <\/span><span dir=\"ltr\">for the purpose; <\/span><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #008080;\"><span dir=\"ltr\">(iii) particulars of every share certificate shall be in Form No. SH-1 as specified in <\/span><span dir=\"ltr\">the Companies (Share Capital and Debentures) Rules, 2014; <\/span><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #008080;\"><span dir=\"ltr\">(iv) after issue of a new share certificate, the company shall inform the depository by way <\/span><span dir=\"ltr\">of corporate action to convert the share certificates into DEMAT form and transfer in <\/span><span dir=\"ltr\">favour of the Authority. <\/span><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #008080;\"><span dir=\"ltr\">(4) The company shall make such transfers through corporate action and shall preserve <\/span><span dir=\"ltr\">copies for its records. <\/span><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #008080;\"><span dir=\"ltr\">(5) While effecting such transfer, the company shall send a statement to the Authority <\/span><span dir=\"ltr\">in Form No. IEPF-4 within thirty days of the corporate action taken under sub-rule (4) of <\/span><span dir=\"ltr\">rule 6A containing details of such transfer and the company shall also attach a copy of <\/span><span dir=\"ltr\">order of the Tribunal under sub-section (8) of section 90 of the Act along with a <\/span><span dir=\"ltr\">declaration that no application under sub-section (9) of section 90 of the Act has been <\/span><span dir=\"ltr\">made or is pending before the Tribunal. <\/span><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #008080;\"><span dir=\"ltr\">(6) The voting rights on shares transferred to the Fund shall remain frozen: <\/span><span dir=\"ltr\">Provided that for the purpose of the Securities and Exchange Board of India (Substantial <\/span><span dir=\"ltr\">Acquisition of Shares and Takeovers) Regulations, 2011, the shares which have been <\/span><span dir=\"ltr\">transferred to the Authority shall not be excluded while calculating the total voting rights. <\/span><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #008080;\"><span dir=\"ltr\">(7) The company shall maintain all such statements filed under sub \u2013 rule (3) in the same <\/span><span dir=\"ltr\">format along with all supporting documents and the Authority shall have the powers to <\/span><span dir=\"ltr\">inspect such records. <\/span><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #008080;\"><span dir=\"ltr\">(8) All benefits accruing on such shares like bonus shares, split, consolidation, fraction <\/span><span dir=\"ltr\">shares and the like except right issue shall also be credited to such DEMAT account [by <\/span><span dir=\"ltr\">the company which shall send a statement to the Authority in Form No. IEPF-4 within <\/span><span dir=\"ltr\">thirty days of the corporate action containing details of such transfer.] <\/span><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #008080;\"><span dir=\"ltr\">(9) If the company is getting delisted, the Authority shall surrender shares on behalf of the <\/span><span dir=\"ltr\">shareholders in accordance with the Securities and Exchange Board of India (Delisting of <\/span><span dir=\"ltr\">Equity Shares) Regulations, 2009 and the proceeds realised shall be credited to the Fund <\/span><span dir=\"ltr\">and a separate ledger account shall be maintained for such proceeds. <\/span><\/span><\/p>\n<p style=\"text-align: justify;\"><span dir=\"ltr\" style=\"color: #008080;\">(10) In case the company whose shares or securities are held by the Authority is being <\/span><span dir=\"ltr\"><span style=\"color: #008080;\">wound up, the Authority may surrender the securities to receive the amount entitled on <\/span><\/span><span style=\"color: #008080;\"><span dir=\"ltr\">behalf of the security holder and credit the amount to the Fund and a separate ledger <\/span><span dir=\"ltr\">account shall be maintained for such proceeds. <\/span><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #008080;\"><span dir=\"ltr\">(11) Any further dividend received on such shares shall be credited to the Fund and a <\/span><span dir=\"ltr\">separate ledger account shall be maintained for such proceeds. <\/span><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #008080;\"><span dir=\"ltr\">(12) Any amount required to be credited by the companies to the Fund as provided under <\/span><span dir=\"ltr\">sub-rules (9), (10) and sub-rule (11) shall be remitted into the specified account of the <\/span><span dir=\"ltr\">IEPF Authority maintained in the Punjab National Bank [and the details thereof shall be <\/span><span dir=\"ltr\">furnished to the Authority in Form No. IEPF-7 within thirty days from the date of <\/span><span dir=\"ltr\">remittance]. <\/span><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #008080;\"><span dir=\"ltr\">Provided further that all such amounts shall be transferred to the Authority without any <\/span><span dir=\"ltr\">restrictions and no application shall be filed for claiming back such amounts from the <\/span><span dir=\"ltr\">Authority. <\/span><\/span><\/p>\n<p style=\"text-align: justify;\"><span dir=\"ltr\" style=\"color: #008080;\">(13) Authority shall furnish its report to the Central Government as and when non-<\/span><span dir=\"ltr\"><span style=\"color: #008080;\">compliance of the rules by companies came to its knowledge.<\/span><\/span><\/p>\n<\/blockquote>\n<p>&nbsp;<\/p>\n<p style=\"text-align: center;\">FORMS : IEPF 4 &amp; 7<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-249526 aligncenter\" src=\"https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/06\/Screenshot-2021-06-10-at-10.04.05-AM-300x209.png\" alt=\"\" width=\"300\" height=\"209\" srcset=\"https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/06\/Screenshot-2021-06-10-at-10.04.05-AM-300x209.png 300w, https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/06\/Screenshot-2021-06-10-at-10.04.05-AM-768x535.png 768w, https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/06\/Screenshot-2021-06-10-at-10.04.05-AM-1536x1069.png 1536w, https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/06\/Screenshot-2021-06-10-at-10.04.05-AM-60x42.png 60w, https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/06\/Screenshot-2021-06-10-at-10.04.05-AM.png 1968w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-249525 aligncenter\" src=\"https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/06\/Screenshot-2021-06-10-at-10.01.18-AM-300x249.png\" alt=\"\" width=\"300\" height=\"249\" srcset=\"https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/06\/Screenshot-2021-06-10-at-10.01.18-AM-300x249.png 300w, https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/06\/Screenshot-2021-06-10-at-10.01.18-AM-768x637.png 768w, https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/06\/Screenshot-2021-06-10-at-10.01.18-AM-1536x1275.png 1536w, https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/06\/Screenshot-2021-06-10-at-10.01.18-AM-60x50.png 60w, https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/06\/Screenshot-2021-06-10-at-10.01.18-AM.png 1974w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Central Government hereby makes the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Amendment Rules, 2021, further to <\/p>\n","protected":false},"author":8808,"featured_media":244192,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[4,15],"tags":[],"class_list":["post-249520","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-legislationupdates","category-rules_regulations"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.4 (Yoast SEO v26.4) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Amendment Rules, 2021 | SCC Times<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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