Ministry of Corporate Affairs has further simplified claim settlement process through rationalization of various requirements under Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 with the mission and vision of Government of India of Ease of Living and Ease of Doing Business.
Companies Act, 2013 and rules made thereunder, as amended from time to time, mandates that businesses transfer to IEPF all the dues to shareholders which are unpaid or unclaimed for seven years. Shareholders can seek a refund of the same from IEPF. The new regime envisages a trust-based model for faster citizen centric services and turnaround time. This step will make the process of refund easier for shareholders.
Investor Education and Protection Fund Authority (IEPFA) has been established with an objective to promote Investor Education, Awareness & Protection, refund unclaimed shares, dividends and other amounts transferred to it under the applicable provisions ofthe Companies Act 2013. IEPFA works under the administrative control of MCA.
The refund process is simplified by issuing the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Second Amendment Rules, 2021.
- Advance Receipt: Requirement of Advance Receipt has been waived off,
- Succession Certificate/ Probate of Will/ Will: Requirement of Succession Certificate/ Probate of Will/ Will has been relaxed up to Rs 5,00,000 (five lakh) both for Physical & DEMAT shares,
- Notary: Notarization of documents has been replaced with self-attestation and
- Affidavits: Requirements of Affidavits and Surety relatively have been eased.
- Ease in Process: MCA focused to make the process simpler and quicker for the claimants.
- Attachments / proof: Requirement of attaching documents related to Unclaimed Suspense Account has been eased.
- Acceptance of Transmission related Documents: Companies have been given flexibility to accept transmission document viz. Succession Certificate, Will etc. as per their internal approved procedures and
- Advertisement in case Share Certificate Lost:Newspaper Advertisement requirement for loss of physical Share Certificate has been waived off up to an amount of Rs.5,00,000.
So far, IEPFA has approved more than 20,000 claims refunding more than 1.29 crore shares. Shares of the market value of more than Rs. 1,011 crore and dividends and other amounts exceeding Rs. 20 crore have been refunded.
Source: Press Info
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