Transfer of Shares to IEPF Authority - Companies Law - 12/2017

General Circular No. 12/2017 No. 11/06/2017-IEPF Government of India Ministry of Corporate Affairs 5 th Floor, 'A' Wing Shastri Bhawan, Dr. R. P. Road New Delhi - 110001 Dated: 16.10.2017 To All Stakeholders Nodal Officers (IEPF) of Concerned Companies All Regional Directors and Registrar of Companies MD CEO NSDL MD CEO CDSL Subject: Transfer of Shares to IEPF Authority Pursuant to second proviso to Rule 6 of Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 as amended time to time, wherein the seven years period provided under sub-section (5) of section 124 is completed for unpaid/unclaimed dividends during September 7, 2016 to October 31, 2017, the due date for transfer of such shares by companies is October 31 st 2017. 2. The IEPF Authority has opened demat accounts with National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL) through Punjab National Bank and SBICAP Securities Limited respectively, as Depository Participants. The details of said accounts are as under: Particulars PNB SBICAP DP ID IN300708 12047200 Client ID 10656671 13676780 3. These demat accounts will have features and functionality to support IEPF operations using paperless, digital processes and facilitate record keeping of shares transferred to the IEPF Authority to meet the requirements of the Rules. 4. All companies which are required to transfer shares to 'EPF Authority under the aforesaid Rules, shall transfer such shares, whether held in dematerialised form or physical form, to the demat accounts of IEPF Authority by way of corporate action. The Information related to the shareholders, whose shares are being transferred to IEPF,s demat accounts with PNB or SBICAP shall be provided by the companies to NSDL or CDSL respectively as per the prescribed format by the concerned depository. 5. The Ministry of Corporate Affairs has held separate discussions with NSDL and CDSL during which they have agreed to levy reduced charges for account maintenance and record keeping pertaining to shares transferred to the demat accounts of IEPF Authority. A Memorandum of Understanding (MOU) to the effect is being finalized with the two depositories and the same will also be uploaded on website www.iepf.gov.in on finalization. NSDL and CDSL shall, based on these discussions, separately notify the charges, which shall not be more than those finalized in the MOU NSDL and CDSL are required to allow the services with immediate effect. 6. Any cash benefit accruing on account of shares transferred to IEPF such as dividend, proceeds realised on account of delisting of equity shares of the company, amount entitled on behalf of security holder if the company is being wound up as per Rule 6, sub-rule (10), (11) and (12) of Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 , shall be transferred by companies to bank account opened by the Authority with Punjab National Bank, sansad marg, New Delhi, which has been linked to demat accounts mentioned at para 2 above. 7. It is clarified that Only amounts mentioned in para 6 above are to be transferred to Bank account indicated above. Transfer of amount due to be transferred under section 125(2) of the Companies Act, 2013 or any other amount to aforesaid account is strictly prohibited. 8. This issues with the approval of the Competent Authority. (Rakesh Tyagi) Director