Rule 6 Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016

(1) The shares shall be credited to DEMAT Account of the Authority to be opened by the Authority for the said purpose, within a period of thirty days of such shares becoming due to be transferred to the Fund:

Provided that, in case the beneficial owner has encashed any dividend warrant ⁵[or any dividend amount has been credited to bank account of the owner of such shares] during the last seven years, such shares shall not be required to be transferred to the Fund even though some dividend warrants may not have been encashed:

*²[ Provided further that in cases where the period of seven years provided under sub-section (5) of section 124 has been completed or being completed during the period from 7th September, 2016 to 31st October, 2017, the due date of transfer of such shares shall be deemed to be 31st October, 2017.]

⁴[Provided further that transfer of shares by the companies to the Fund shall be deemed to be transmission of shares and the procedure to be followed for transmission of shares shall be followed by the companies while transferring the shares to the fund.]

⁷[Explanation.- For removal of all doubts, it is hereby clarified that all shares in respect of which dividend has been transferred to Investor Education and Protection Fund on or before the 7th September 2016, shall also be transferred by the company in the name of Investor Education and Protection Fund.]

(2) For the purposes of effecting transfer of such shares, the Board shall authorise the Company Secretary or any other person to sign the necessary documents.

(3) The company shall follow the following procedure while transferring the shares, namely:-

(a) The company shall inform, at the latest available address, the shareholder concerned regarding transfer of shares three months before the due date of transfer of shares and also simultaneously publish a notice in the leading newspaper in English and regional language having wide circulation informing the concerned that the names of such shareholders and their folio number or DP ID – Client ID are available on their website duly mentioning the website address.

(b) In case, where there is a specific order of Court or Tribunal or statutory Authority restraining any transfer of such shares and payment of dividend or where such shares are pledged or hypothecated under the provisions of the Depositories Act, 1996 or shares already been transferred under sub-rule (1) above, the company shall not transfer such shares to the Fund:

Provided that the company shall furnish details of such shares and unpaid dividend to the Authority in Form No. IEPF 3 within thirty days from the end of financial year.

(c) For the purposes of effecting the transfer, where the shares are dealt with in a depository-

(i) the Company shall inform the depository byway of corporate action, where the shareholders have their accounts for transfer in favour of the Authority.

(ii) on receipt of such intimation, the depository shall effect the transfer of shares in favour of DEMAT account of the Authority.

³“(d) For the purposes of effecting the transfer shares held in physical form–

(i) the Company Secretary or the person authorised by the Board shall make an application, on behalf of the concerned shareholder, to the company, for issue of a new share certificate;

(ii) on receipt of the application under clause (a), a new share certificate for each such shareholder shall be issued and it shall be stated on the face of the certificate that

“Issued in lieu of share certificate No for the purpose oftransferto IEPF” and the same be recorded in the register maintained forthe purpose;

(iii) particulars of every share certificate shall be in Form No. SH–1 as specified in the Companies (Share Capital and Debentures) Rules, 2014;

(iv) after issue of a new share certificate, the company shall inform the depository byway of corporate action to convert the share certificates into DEMAT form and transfer in favour of the Authority.“

(4) The company shall make such transfers through corporate action and shall preserve copies for its records.

⁸[(5) While effecting such transfer, the company shall send a statement to the Authority in Form No. I EPF–4 within thirty days of the corporate action taken under clause (c) of sub–rule (3) of rule 6 containing details of such transfer and the company shall also attach a copy of the public notice published under clause (a) of sub–rule (3) of rule 6 in Form No IEPF–4.1

(6) The voting rights on shares transferred to the Fund shall remain frozen until the rightful owner claims the shares:

Provided that forthe purpose of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, the shares which have been transferred to the Authority shall not be excluded while calculating the total voting rights.

⁹[(7) The company shall maintain all such statements filed under sub – rule (5) in the same format along with all supporting documents and the Authority shall have the powers to inspect such records],

^l0[(8) All benefits accruing on such shares like bonus shares, split, consolidation, fraction shares and the like except right issue shall also be credited to such DEMAT account [by the company which shall send a statement to the Authority in Form No. IEPF–4 within thirty days of the corporate action containing details of such transfer.]]

^l1[(9) The shares held in such DEMAT account shall not be transferred or dealt with in any manner whatsoever except for the purposes of transferring the shares back to the claimant as and when he approaches the Authority or in accordance with sub-rules (10), (11) and (11A).]

(10) If the company is getting delisted, the Authority shall surrender shares on behalf of the shareholders in accordance with the Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009 and the proceeds realised shall be credited to the Fund and a separate ledger account shall be maintained for such proceeds.

(11) In case the company whose shares or securities are held by the Authority is being wound up, the Authority may surrender the securities to receive the amount entitled on behalf of the securityholder and credit the amount to the Fund and a separate ledger account shall be maintained for such proceeds.

(12) Any further dividend received on such shares shall be credited to the Fund and a separate ledger account shall be maintained for such proceeds”.]

–[“(13) Any amount required to be credited by the companies to the Fund as provided under sub–rules (10), (11) and sub–rule (12) shall be remitted into the specified account of the IEPF Authority maintained in the Punjab National Bank ⁶[and the details thereof shall be furnished to the Authority in Form No. I EPF 7 within thirty days from the date of remittance or within thirty days from the date of enforcement of these Rules, as the case may be.]

(14) Authority shall furnish its report to the Central Government as and when noncompliance of the rules by companies came to its knowledge.”].

Amendment

^1. Substituted by the Investor Education and ProtectionFund Authority (Accounting, Audit, Transfer and Refund) Amendment Rules, 2017 Dated 28th February, 2017. – Original Content

^2. Substituted by the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Second Amendment Rules, 2017.

For the Words:

“Provided further that in cases where the period of seven years provided under sub–section (5) of section 124 has been completed or being completed during the period from 7th September, 2016 to 31st May, 2017, the due date of transfer of such shares shall be deemed to be 31st May, 2017.“ the following shall be substituted:–

“Provided further that in cases where the period of seven years provided under sub–section (5) of section 124 has been completed or being completed during the period from 7th September, 2016 to 31st October, 2017, the due date of transfer of such shares shall be deemed to be 31st October, 2017”

^3. Substituted by The Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund^ Second Amendment Rules, 2017.

In sub–rule(3), for clause (d):

“(d) For the purposes of effecting the transfer where the shares are held in physical form–

(i) the Company Secretary or the person authorised bythe Board shall make an application, on behalf of the concerned shareholders, to the company, for issue of duplicate share certificates;

**(ii) on receipt of the application under clause (a), a duplicate certificate for each such shareholder shall be issued and it shall be stated on the face of it and be recorded in the register maintained for the purpose, that the duplicate certificate is “Issued in lieu of share certificate No for purpose of transfer to IEPF’’ and the word “duplicate” shall be stamped or punched in bold letters on the first page of the share certificate:

(iii) particulars of every share certificate issued as above shall be entered forthwith in a register of renewed and duplicate share certificates maintained in Form No. SH–2 as specified in the Companies (Share Capital and Debentures) Rules, 2014;

(iv) after issue of duplicate share certificates, the company shall inform the depository by way of corporate action to convert the duplicate share certificates into DEMAT form and transfer in favour of the Authority.”

The following shall be substituted:

”(d) For the purposes of effecting the transfer shares held in physical form–

(i) the Company Secretary or the person authorised by the Board shall make an application, on behalf of the concerned shareholder, to the company, for issue of a new share certificate;

(ii) on receipt of the application under clause (a), a new share certificate for each such shareholder shall be issued and it shall be stated on the face of the certificate that

“Issued in lieu of share certificate No for the purpose of transfer to IEPF” andthe same be recorded in the register maintained for the purpose;

(iii) particulars of every share certificate shall be in Form No. SH–1 as specified in the Companies (Share Capital and Debentures) Rules, 2014;

(iv) after issue of a new share certificate, the company shall inform the depository byway of corporate action to convert the share certificates into DEMAT form and transfer in favour of the Authority.“

^4.Inserted as per the Investor Education and Protection Fund Authority (Accounting. Audit. Transfer and Refund) Second Amendment Rules. 2017

^5.Inserted by The Investor Investor Education and Protection Fund Authority (Accounting. Audit. Transfer and Refund) Second Amendment Rules. 2017 Dated 13th October 201 7

^6. Inserted by the Investor Investor Education and Protection Fund Authority (Accounting. Audit. Transfer and Refund) Second Amendment Rules. 2017Dated 22nd May 2018

^7.Inserted by The Investor Education and Protection FundAuthoritv (Accounting. Audit. Transfer and Refund^Second Amendment Rules. 2019 Dated 14th August. 2019 Effective from 20th August 2019

^8.Substituted by The Investor Education and Protection FundAuthoritv (Accounting. Audit. Transfer and Refund)Second Amendment Rules. 2019 Dated 14th August. 2019Effective from 20th August 2019

(5) While effecting such transfer, the company shall send a statement to the Authority in Form No. IEPF 4 containing details of such transfer.

the following sub–rule shall be substituted namely,

(5) While effecting such transfer, the company shall send a statement to the Authority in Form No. IEPF–4 within thirty days of the corporate action taken under clause (c) of sub–rule (3) of rule 6 containing details of such transfer and the company shall also attach a copy of the public notice published under clause (a) of sub–rule (3) of rule 6 in Form No IEPF–4.

^9.Substituted by The Investor Education and Protection FundAuthoritv (Accounting. Audit. Transfer and Refund^Second Amendment Rules. 2019 Dated 14th August. 2019 Effective from 20th August 2019

for sub–rule (7),

(7) The company shall maintain the details of shareholding of each individual shareholders whose shares have been credited to the DEMAT account of the Authority.

the following sub–rule shall be substituted namely,

(7) The company shall maintain all such statements filed under sub – rule (5) in the same format along with all supporting documents and the Authority shall have the powers to inspect such records.

^10.Substituted bv The Investor Education and Protection FundAuthoritv (Accounting. Audit. Transfer and Refund)Second Amendment Rules. 2019 Dated 14th August. 2019 Effective from 20th August 2019

for sub–rule (8),

(8) All benefits accruing on such shares e.g., bonus shares, split, consolidation, fraction shares etc., except right issue shall also be credited to such DEMAT account.

the following sub–rule shall be substituted namely,

(8) All benefits accruing on such shares like bonus shares, split, consolidation, fraction shares and the like except right issue shall also be credited to such DEMAT account [by the company which shall send a statement to the Authority in Form No. IEPF–4 within thirty days of the corporate action containing details of such transfer.

* Other Circular related to transfer of shares;–

^1. Transfer of shares to IEPF Authority

^2. Clarification regarding due date of transfer of shares to IEPF Authority

^3. Transfer of Shares to IEPF Authority–Circular No. 12 Dated: 16.10.2017

**” Circular Related to

^1. Clarification regarding transmission of Securities bv Operation of Law.

^11.Substituted by the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Third Amendment Rules, 2021 dated 28th December 2021.

Original Omitted Content:-

(9) The shares held in such DEMAT account shall not be transferred or dealt with in any manner whatsoever except forthe purposes of transferring the shares back to the claimant as and when he approaches the Authority or in accordance with sub–rule (10) and (11).