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TMI BlogProcedural framework for dealing with unclaimed amounts lying with entities having listed non-convertible securities and manner of claiming such amounts by investorsX X X X Extracts X X X X X X X X Extracts X X X X ..... claimed interest/ dividend/ redemption amount for non-convertible securities], there was a need to standardise the process to be followed by a listed entity for transfer of such amounts to Escrow Account and by the investors for making claims thereof. Hence, a framework has been created for defining the manner of transfer of such unclaimed amounts (referred at paragraph 1 above) by a listed entity to an Escrow Account and claim thereof by an investor. The same is enclosed as Annex A to this Circular. 3. Further, Regulation 61A (3) of the LODR Regulations , inter-alia , provides that any amount transferred to the Escrow Account in terms of Regulation 61A (2) , remaining unclaimed for a period of seven years shall be transferred to: 3.1. the Investor Education and Protection Fund (IEPF) constituted in terms of section 125 of the Companies Act, 2013 in case of listed entities which are companies [Entities which fall within the definition of company under the Companies Act, 2013 and the Rules made thereunder; ]; and 3.2. the Investor Protection and Education Fund (IPEF) created by the Board in terms of section 11 of the Act in case of list ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ears, as on February 29, 2024, shall start computing interest, as per provisions of Annex - A , from March 1, 2024. For listed entities which are not companies and have unclaimed amounts in the Escrow Account for more than 7 years, as on February 29, 2024, shall transfer the unclaimed amounts of the investors to IPEF, in compliance with the provisions of Annex - B , on or before March 31, 2024. 12. This Circular is available on the SEBI website, www.sebi.gov.in , under the category, Legal , under Circulars . Yours faithfully, Pradeep Ramakrishnan General Manager Department of Debt and Hybrid Securities Tel No.022-2644 9246 Email id - [email protected] Annex A Framework for transfer of unclaimed amounts by the listed entities to Escrow Accounts and claim thereof by investors (Regulation 61A (2) of the LODR Regulations) Applicability: 1. To entities having listed non-convertible securities with interest/ dividend/ redemption amount which has not been claimed within thirty days from the due date of interest/ dividend/ redemption payment. Obligations of the lis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Total Name and designation of the Nodal Officer: Email ID and phone no.: 6. Search facility for investor: The listed entity shall provide a search facility on its website for investors to verify if there is any unclaimed amount due to them and lying in the Escrow Account of the listed entity. The search criterion may be based on combinations, such as: 6.1. PAN and Date of birth; or 6.2. Name and Depository Participant Identification (DP ID)/ Client Identification (Client ID). 7. Information of unclaimed amount: Upon such search, the following information shall be visible to the investor: 7.1. Amount due to the investor on the date of payment (in INR); 7.2. Category - interest/ dividend/ redemption amount; 7.3. Date when amount becam ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... days from the date of receipt of such communication, failing which the claim may be rejected. However, rejection of claim does not debar an investor from filing a fresh claim. 9.3. The listed entity shall within thirty days of receipt of a claim application from an investor or complete information as called upon from the investor, remit the payment to the investor using electronic modes of funds transfer. 9.4. The listed entity shall display the cumulative details of the number of claims received, processed, pending, etc. on its website. 10. Maintenance of records: The listed entity shall preserve information pertaining to the unclaimed amounts of investors including relevant documentation. The listed entity shall furnish necessary information, as and when called for by the Board. 11. Update of information: Any change in the information uploaded on the website shall be updated by the listed entity by the seventh day of the succeeding month. Procedure applicable to investors : 12. Procedure for claim by an investor: Any investor claiming to be entitled to any unclaimed amount lying with the listed entity may apply to the listed entity for paymen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ailure continues, subject to a maximum of ten lakh rupees. Any penalty amount so transferred to the IPEF shall be utilised for the purposes described under Regulations 5 (1) and 5 (2) of the IPEF Regulations. 4. Information to be submitted along with fund transfer: The listed entity shall provide information about the unclaimed amount transferred to the IPEF, as per prescribed format (enclosed as Form - A to this Annex), in hard copy, addressed to Chief General Manager, Office of Investor Assistance and Education, SEBI , as well as in soft copy, via email to [email protected] . 5. Display of information w.r.t. unclaimed amounts by listed entity on its website: The listed entity, shall, within a period of thirty days of transferring the unclaimed amount to the IPEF (as referred in paragraph 2 above), upload the details on its website as given below: ISIN Amount lying unclaimed in Escrow Account as at end of seven years (in INR) Category (Interest/ Dividend/ Redemption amount) No. of investors Date when amount became du ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owever, this does not preclude the Board from taking any action for any fraud or misrepresentation in this regard. 9. Others: The provisions with regard to Designating Nodal Officer, Search facility for an investor on the website of the listed entity, Policy for filing of claim by an investor and Processing of claim of an investor by the listed entity, Maintenance of records and Update of information by the listed entity, as prescribed in Annex - A to this circular, shall apply, mutatis mutandis , at the stage of transfer of funds from the Escrow Account to IPEF, as well. Procedures applicable to investors : 10. Procedure for claim by an investor: Any investor claiming to be entitled to any unclaimed amount transferred to the IPEF by the listed entity, may apply to the listed entity for payment of such amount, in the format and manner as prescribed by the listed entity. 11. Claim by legal heir/ successor/ nominee: The aforementioned provisions in respect of the investor, shall apply, mutatis mutandis, to the legal heir/ successor/ nominee of the investor. The legal heir/ successor/ nominee shall satisfy the provisions specified under the LODR Regulations ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ividend/ redemption amount) Date of Payment to IPEF UTR No. IV. Any other relevant information: Signature: Name: Designation of Officer (with stamp): Place: Date: Form - B (To be submitted by the listed entity along with refund application to IPEF) I. Details of the listed entity: a. Name b. PAN c. Registered office address d. Correspondence office address - e. Phone number f. Email ID g. Bank account details where refund is to be made (Bank account number, Name of Bank, IFSC Code, Branch address) - II. Details of amount claimed for refund: S. No. Name of the Investor Last known address, contact details (email ID and phone no.) of investor PAN of the Investor DPID/ Client ID of the Investor (if applicable) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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