Process to refund from IEPF
Provisions of Investor Education and Protection fund:
Transfer of Dividend: Any money transferred to the Unpaid Dividend Account of a company in pursuance of this section which remains unpaid or unclaimed for a period of seven years (7 year and 37 days from the date of declaration of dividend) from the date of such transfer shall be transferred by the company along with interest accrued, if any, thereon to Investor education and protection fund.
§ The company shall send a statement in the prescribed form of the details of such transfer to the authority which administers the said Fund and that authority shall issue a receipt to the company as evidence of such transfer.
Transfer of Shares:
All shares in respect of which [dividend has not been paid or claimed for seven consecutive years or more shall be] transferred by the company in the name of Investor Education and Protection Fund along with a statement containing such details as may be prescribed:
Whether Shareholder can claim transfer of shares/Dividend from Investor Education and Protection Fund.
Yes, any claimant of shares transferred above shall be entitled to claim the transfer of shares from Investor Education and Protection Fund in accordance with such procedure and on submission of such documents as discussed below.
Process to get refund shares from IEPF:
Any person, whose shares, unclaimed dividend, matured deposits, matured debentures, application money due for refund, or interest thereon, sale proceeds of fractional shares, redemption proceeds of preference shares, etc. has been transferred to the Fund, may claim the shares under provision to sub-section (6) of section 124 or apply for refund under clause (a) of sub-section (3) of section 125 or under proviso to sub-section (3) of section 125, as the case may be, to the Authority.
ü The claimant shall file only one consolidated claim in respect of a company in a financial year.
ü In case, claimant is a legal heir or successor or administrator nominee of the registered security holder, he has to ensure that the transmission process is completed by the company before filing any claim with the Authority.
Step- I Claimant to Authority
I. Person have to make application to MCA in eform IEPF-5 by mentioning following details:
i. Particular of Applicant
ii. Particular of Company
iii. Details of Shares to be claimed
iv. Details of amount claimed
v. Year wise details of securities/deposits
vi. Aadhaar Number or Passport/OCI/PIO Card No. (in case of NRI/foreigners)
vii. Details of Bank account (Aadhar linked, in case applicant is not NRI/foreigner)in which refund of claim to be made
II. No need to affix DSC on the eform
III. There is no option to attach any document in the form.
Step- II Claimant to Company
The claimant and after filing the refund claim in this form online, shall to send the attachments prescribed below to Nodal Officer (IEPF) of the company at its registered office in an envelope marked “claim for refund form IEPF Authority” for initiating the verification for claim:
i. Print out of duly filled claim form (IEPF-5) with claimant signature
ii. Copy of acknowledgement
iii. Indemnity Bond (original) with claimant signature
§ On a non-judicial Stamp Paper of the value as prescribed under the Stamp Act if the amount of the claim is Rs.10, 000 or more.
§ On a plain paper if the amount claimed does not exceed Rs.10,000.
§ In case of refund of shares, on a non-judicial Stamp Paper of the value as prescribed under the Stamp Act.
iv. Advance Stamped receipt (original) with signature of claimant and two witnesses
v. In case of refund of matured deposit or debenture, original certificate thereto
vi. Copy of Aadhaar Card(For Indian Nationals)
vii. Proof of entitlement (certificate of share/Interest warrant Application No. etc.)
viii. Cancelled Cheque leaf
ix. Copy of Passport, OCI and PIO card in case of foreigners and NRI
Step- III Company to Authority
The company shall within 15 days of receipt of claim form, send a verification report to the Authority in the format specified by the Authority along with all documents submitted by the claimant.
Step- IV Authority to Claimant
After verification of the entitlement of the claimant-
To the Amount Claimed, the Authority and then Drawing and Disbursement Officer of the Authority shall present a bill to the Pay and Accounts Office for e- payment as per the guidelines.
To the Shares Claimed. the Authority shall issue a refund sanction order with the approval of the Competent Authority and shall either credit the shares which are lying with depository participant in IEPF suspense account (name of the company) to the Demat account of the claimant to the extent of the claimant’s entitlement or in case of the physical certificates, if any, cancel the duplicate certificate and transfer the shares in favour of the claimant.
Time Period: An application received for refund of any claim under this rule duly verified by the concerned company shall be disposed of by the Authority within sixty days from the date of receipt of the verification report from the company
(Author – CS Divesh Goyal, GOYAL DIVESH & ASSOCIATES Company Secretary in Practice from Delhi and can be contacted at email@example.com)
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