The Investor Education and Protection Fund Authority (Accounting,Audit, Transfer and Refund), Third Amendment, Rules, 2021

MINISTRY OF CORPORATE AFFAIRS
NOTIFICATION
New Delhi, the 28th December, 2021

G.S.R. 888(E).—In exercise of the powers conferred by sub-sections (1), (2), (3), (4), (8), (9), (10) and (11)
of section 125, sub-section (6) of section 124 and section 236 read with section 469 of the Companies Act, 2013 (18
of 2013), the Central Government hereby makes the following rules, further to amend the Investor Education and
Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016, namely:-
[भाग II—खण् ड 3(i)] भारत का रािपत्र : ऄसाधारण 3
1. (1) These rules may be called the Investor Education and Protection Fund Authority (Accounting,
Audit, Transfer and Refund), Third Amendment, Rules, 2021.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. In the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund)
Rules, 2016, in rule 6,-
(i) for sub-rule (9), the following sub-rule shall be substituted, namely:-
“(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).”;
(ii) after sub-rule (11), the following sub-rule shall be inserted, namely:-
“(11A) In case an application for purchase of shares under section 236 is received through the company, the
Authority may receive the amount entitled on behalf of the minority shareholders from the company as per procedures
provided under sub-section 5 of the said section 236 and credit the amount to the Fund and a separate ledger account
shall be maintained for such proceeds:
Provided that Authority before such receipt of money on behalf of such shareholders shall verify that the
conditions provided under the relevant section of the Act and rules framed thereunder have been satisfied and shall
also call a report from the company on the following, namely:-
(a) whether the acquirer to whom the shares held by the Authority would be transferred has fulfilled the
requirements of section 236;
(b) whether the shares have been valued in accordance with the provisions of sub-section (2) of section
236 and the rules made thereunder; and
(c) any other relevant information:
Provided further that the company shall be liable under all circumstances whatsoever to indemnify the
Authority in case of any dispute or lawsuit that may be initiated and the Authority shall not be liable to indemnify the
minority shareholder or the Company or any other person for any liability arising, leading to any litigation or
complaint arising thereof:
Provided also that any claimant entitled to claim transfer of such shares from the Authority under sub-section
(6) of section 124 shall only be entitled to the amount received by the Authority on behalf of the minority shareholder
without any interest thereon.”;
(iii) after sub-rule (13), the following sub-rule shall be inserted, namely:-
“(13A) Any amount required to be credited by the companies to the Fund as provided under sub-rule (11A)
shall be remitted into the specified account of the IEPF Authority maintained in the Punjab National Bank and the
details thereof shall be furnished to the Authority in Form No. IEPF-7 within thirty days from the date of remittance or
within thirty days from the date of commencement of the Investor Education and Protection Fund Authority
(Accounting, Audit, Transfer and Refund), Third Amendment, Rules, 2021, as the case may be.”.

[F. No. 05/2/2020-IEPF]
MANOJ PANDEY, Jt. Secy.