How to Get back Shares from IEPF -347
How to Get back
Shares from IEPF?
An
endeavor to help General Investors.
As MCA has issued [1]Investor
Education and Protection Fund Authority Rules, 2017. As per these rules “Any money
as dividend not claimed by investor
within 7 year and 37 days from the date of declaration of dividend, shall
be transferred by the company along with interest accrued, if any, thereon to Investor
education and protection fund.
Even 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.
In previous 7-8 months
shares of many persons has been transferred in the name of Investor Education
and Protection Fund. As a normal person main issue is how to get recover such
shares from the IEPF in their name.
In this editorial author
shall endeavor to briefly discuss “Process for a general person to
claim their shares from IEPF to their names and mistakes which a person should
not made while applying for the same”.
By using the below
mentioned process a General Person himself can apply for refund of shares from
IEPF to their names.
A. Whether Shareholder can claim transfer
of shares/Dividend from Investor Education and Protection Fund.
Yes, any
claimant of shares transferred to IEPF 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.
B. In respect of a Company, how many claim form can be file by the claimant in
a financial year.
The
claimant shall file only one consolidated claim in respect of a company in a
financial year. Claimant have to very conscious while filing the form, because
for a company he will get only one chance in a financial year.
C. In case of claimant is legal heir or successor or nominee of the
registered share holder. In this case whether they can directly apply to IEPF
for refund of shares or dividend?
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
D. Whether any documents required to be attached in the form IEPF – 5?
No need to attach any documents in the form.
NOTE:
i.
Claimant have to
download the form IEPF – 5 from the website of http://www.iepf.gov.in/
ii.
After download have
to fill the above mentioned information.
iii.
After that claimant
has to upload the form on website of IEPF only.
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) (the name of Nodal
Officer and his e-mail ID shall be published on its website) 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.
NOTE:
In case of non receipt
of documents by the Authority after the expiry of 90 days from the date of
filing of Form IEPF-5, the Authority may reject Form IEPF-5, after giving
an opportunity to the claimant to furnish response within a period of 30 days.
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 60 days from the date of receipt of the verification
report from the company.
If Incomplete Application:
In cases, where the
application is incomplete or not approved, a communication shall be sent to the
claimant and the concerned company by the Authority detailing deficiencies of
the application.
“Provided that in case of non receipt of
rectified documents by the Authority after the expiry of ninety days from the
date of such communication, the Authority may reject Form IEPF-5, after giving
an opportunity to the claimant to furnish response within a period of thirty
days.”
(Author – CS Divesh Goyal, GOYAL DIVESH
& ASSOCIATES Company Secretary in Practice from Delhi and can be contacted
at csdiveshgoyal@gmail.com)
Disclaimer: The entire contents of this
document have been prepared on the basis of relevant provisions and as per the
information existing at the time of the preparation. Although care has been
taken to ensure the accuracy, completeness and reliability of the information
provided, I assume no responsibility therefore. Users of this information are
expected to refer to the relevant existing provisions of applicable Laws. The
user of the information agrees that the information is not a professional
advice and is subject to change without notice. I assume no responsibility for
the consequences of use of such information. IN NO EVENT SHALL I SHALL BE
LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL OR INCIDENTAL DAMAGE RESULTING FROM,
ARISING OUT OF OR IN CONNECTION WITH THE USE OF THE INFORMATION. This is only a
knowledge sharing initiative and author does not intend to solicit any business
or profession.
Comments
Post a Comment