Tag: IEPFA

MCA & IEPFA further simplifies IEPFA Claim Settlement Process

Ministry of Corporate Affairshas further simplified claim settlement process through rationalization of various requirements under Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 with the mission and vision of Government of India of Ease of Living and Ease of Doing Business.

Companies Act, 2013 and rules made thereunder, as amended from time to time, mandates that businesses transfer to IEPF all the dues to shareholders which are unpaid or unclaimed for seven years. Shareholders can seek a refund of the same from IEPF. The new regime envisages a trust-based model for faster citizen centric services and turnaround time. Thisstepwill make the process of refund easier for shareholders.

Investor Education and Protection Fund Authority (IEPFA) has been established with an objective to promote Investor Education, Awareness & Protection, refund unclaimed shares, dividends and other amounts transferred to it under the applicable provisions ofthe Companies Act 2013. IEPFA works under the administrative control of MCA.

The refund process is simplified by issuing the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Second Amendment Rules, 2021.

Key Highlights:

For claimants:

  1. Advance Receipt:Requirement of Advance Receipt has been waived off,
  2. Succession Certificate/ Probate of Will/ Will: Requirement of Succession Certificate/ Probate of Will/ Will has been relaxed up to Rs 5,00,000 (five lakh) both for Physical & DEMAT shares,
  3. Notary:notarization of documents has been replaced with self-attestation and
  4. Affidavits:Requirements of Affidavits and Surety relatively have been eased.
  5. Ease in Process: MCA focused to make the process simpler and quicker for the claimants.

For companies,

  1. Attachments / proof: Requirement of attaching documents related to Unclaimed Suspense Account has been eased.
  2. Acceptance of Transmission related Documents: Companies have been given flexibility to accept transmission document viz. Succession Certificate, Will etc. as per their internal approved procedures and
  3. Advertisement in case Share Certificate Lost:Newspaper Advertisement requirement for loss of physical Share Certificate has been waived off up to an amount of Rs.5,00,000.

So far, IEPFA has approved more than 20,000 claims refunding more than 1.29 crore shares. Shares of the market value of more than ₹1,011 crore and dividends and other amounts exceeding ₹20 crore have been refunded.

Source: Press Info

Disclaimer:  Every effort has been made to avoid errors or omissions in this material. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. In no event the author shall be liable for any direct, indirect, special or incidental damage resulting from or arising out of or in connection with the use of this information.

IEFPA’s 6 modules of short films titled “Hisab Ki Kitaab” launched

Union Minister of State for Finance and Corporate Affairs Shri Anurag Singh Thakur launched the six modules of short films of Investor Education & Protection Fund Authority (IEPFA) titled “Hisaab Ki Kitaab”today.

“Hisaab ki kitab” is a series of 6 short films, developed by CSC eGov as a part of their training tool. There are 6 short films/ modules of 5 minutes duration each. The various modules highlight the importance of budget, saving, importance of Insurance schemes, various social security schemes of the government etc. The modules also interestingly portray the consequences of a common man falling prey to the schemes and how they should protect themselves from Ponzi schemes. These short films will be used by IEPFA and its partnering organisation for Investor Awareness Programs across the country. During the launch a trivia of all the 6 modules was showcased.

Shri Thakur said that financial inclusion is one of the top-most policy priorities of the Government of India. Financial literacy and education plays a crucial role in financial inclusion, inclusive growth and sustainable prosperity. In financial inclusion, a number of steps have been taken by the Government. As a result a large section of the population have been brought into the formal financial fold. In this context, promoting and deepening financial education would play a very important part in our endeavour to realise our collective potential.

He further added that “the mandate of IEPF Authority is to build investor awareness among various stakeholders in the rural and urban areas. Due to the digital global community, the urban-rural divide in India is blurring. Yet the behaviour change in the rural populace with respect to investment and long term financial planning needs to be triggered.”

Senior representatives of various partnering organisations of IEPF Authority like the Nehru Yuva Kendra Sangathan, India Post Payment Bank, Indian Institute of Corporate Affairs, ICSI and ICAI attended the virtual event.