Transfer of shares to IEPF Account

Ministry of Corporate Affairs issued General Circular No. 06/2017 dated 29^th May, 2017.

As per Rule 6 of IEPF (Accounting, Audit, Transfer and Refund) Amendment Rules, 2017 where the seven year period provided under sub-section (5) of section 124 has been completed or being completed during period from September, 7, 2016 to May 31, 2017, the due date of transfer of such shares by companies is May 31, 2017.

Till finalization of modalities of transfer/transmittal of shares from companies account to demat account of IEPF, due date for transfer of shares shall stand extended and revised due date for transfer/transmittal of shares shall be notified soon.

Accordingly Companies have been advised to complete all formalities, as laid down in the aforesaid Rules without waiting for fresh dates. Companies which have already published notice in newspaper and send notices to the shareholders need not give the fresh notices again due to this extension.

The circular can be downloaded from following link:

http://www.mca.gov.in/Ministry/pdf/GeneralCircular6_29052017.pdf

Transfer of shares to IEPF Account

Ministry of Corporate Affairs vide General Circular No.05/2017 have withdrawn the General Circular No. 03/2017 dated 27/04/2017 with immediate effect. The subject matter of the circular is being reviewed by the Ministry and fresh instructions on the matter will be issued in due course of time with the Approval of the Competent Authority.

The circular can be downloaded from following link:

https://www.mca.gov.in/Ministry/pdf/Circular_16052017.pdf

Ministry of Corporate Affairs vide notification dated 11^th May, 2017 has amended deposit rules. The summary is as follows:

•    Any amount received by a company from Infrastructure Investment funds registered with SEBI will not be considered as deposit.

•    Further companies may accept deposits without deposit Insurance contract till 31st March, 2018 or till the availability of Insurance product whichever is earlier

  The notification can be downloaded from following link:

  http://www.mca.gov.in/Ministry/pdf/CompaniesAcceptanceofDeposits_12052017.pdf

      

File Formats for Transfer of Shares to the Demat account of IEPF Authority

In furtherance to our newsletter dated 5^th May, 2017, all  Companies  are  required  to  transfer  such  shares to IEPF to the Demat Account of IEPF Authority  by  way  of  Corporate  Action. For  this  purpose,  the  IEPF  Authority  has  engaged  services  of  NSDL.

NSDL Vide Circular No.: NSDL/CIR/II/ 4 /2017 has prescribed three  different  file  formats  to  transfer  shares  to  Demat  account  of  IEPF  Authority  held with NSDL.

Format	Particulars
Format  A	Applicable where shares are being transferred from Investors’ holding  demat  account  in  NSDL  Depository  System
Format  B	Applicable where shares are being transferred from Investors’ holding demat account in CDSL Depository  System.
Format C	Applicable where shares being transferred are held in physical form

The detailed operational guidelines to transfer shares to the Demat account of IEPF Authority using the aforementioned file formats will be issued shortly.

   
      The circular can be downloaded from following link:

http://www.mca.gov.in/Ministry/pdf/IEPFcircular_09052017.pdf

The newsletter dated 5^th May, 2017 can be viewed on following link:

http://mmjcadvisoryblog.blogspot.in/2017/05/clarification-on-transfer-of-shares-to.html

Clarification on Transfer of shares to IEPF Account

Pursuant to the provisions of section 124 of the Companies Act, 2013, any money transferred to Unpaid Dividend Account of a Company which remains unpaid or unclaimed for a period of seven years is required to be transferred to Investor Education and Protection Fund, (IEPF). Further alongwith the monies, even those shares are also required to be transferred to IEPF.

As per Rule 6 of IEPF (Accounting, Audit, Transfer and Refund) Amendment Rules, 2017 where the seven year period provided under sub-section (5) of section 124 has been completed or being completed during period from September, 7, 2016 to May 31, 2017, the due date of transfer of such shares by companies is May 31, 2017.

To complete the processes of transfer of shares to IEPF, MCA vide General Circular 03/2017 has clarified the following:

• Special Demat Account shall be opened by IEPF Authority in NSDL

• The said account shall have features and functionality to support IEPF operations

• Companies are required to transfer shares (whether held in Demat or Physical form) to demat account of IEPF Authority by way of corporate action.

• NSDL will prescribe the file formats and operational procedures for transfer of shares to special demat account of the IEPF Authority by 30th April, 2017 and 15th May, 2017 respectively.

• NSDL shall levy charges to the companies for  uploading and  maintaining  of records pertaining to shares transferred to the special demat account of the IEPF Authority which would be in addition to the fees which NSDL levy for corporate actions.

The circular can be downloaded from following link:

http://www.mca.gov.in/Ministry/pdf/Circular_27042017.pd