Investor education and protection fund- yearly disclosure

MCA 2263 views 12 replies

Ankur Garg

Company Secretary and Compliance Officer

114788 Points Joined January 2009

Investor Education and Protection Fund (Uploading of information regarding unpaid and unclaimed amounts lying with companies) Rules, 2012.

Gist: The information regarding unpaid and unclaimed dividend is required to be disclosed to the Ministry and on the website of the Company yearly separately every year till the completion of the seven years’ period within 90 days after holding AGM.

This is to inform you that Ministry has issued Investor Education and Protection Fund (Uploading of information regarding unpaid and unclaimed amounts lying with companies) Rules, 2012. According to the said rules every company (including Non-banking Financial Companies and Residuary Non-banking Companies) is required to file the information of unclaimed and unpaid amounts as referred to in sub-section (2) of section 205C of the Companies Act, 1956.

This information is mandatorily required to be uploaded on the website of the company and on the website of the Ministry filed every year within a period of 90 days after the holding of Annual General Meeting or the date on which it should have been held as per the provisions of section 166 of the Act, and every year thereafter till completion of the seven years' period.

The information is to be filed in Form 5- INV as per the above mentioned rules. The eForm, the excel template and detailed steps are provided in the IEPF application link on the portal www.iepf.gov.in (https://www.iepf.gov.in).

For financial year ended on 31st March 2011, the information should be uploaded and the eForm should be filed latest by 31st July 2012.

The said information shall be duly verified and certified by a Chartered Accountant or a Company Secretary or a Cost Accountant in practice or by the Statutory Auditors of the Company.

Courtesy: CS Ankur Srivastava

Thanks

Replies (12)

CS Ankur Srivastava

Company Secretary & Compliance Officer

17858 Points Joined November 2008

Thanks for the gesture Ankur ji.....

ashisha

Practising CA

261 Points Joined November 2010

Sir,

is filing of Form 5INV mandatory for those companies that have not declared any dividends and no amount is pending in the fund?

Ankur Garg

Company Secretary and Compliance Officer

114788 Points Joined January 2009

Originally posted by : ashisha
	Sir, is filing of Form 5INV mandatory for those companies that have not declared any dividends and no amount is pending in the fund?

No it is not required for such companies. The companies having unpaid and unclaimed dividend amount in IEPF required to comply with these rules.

Regards

Priyanka

Assistant Company Secretary

905 Points Joined March 2011

Thanks Ankur Sir,

But please clarify "every company (including Non-banking Financial Companies and Residuary Non-banking Companies) is required to file the information" doesn't it cover every company

Ankur Garg

Company Secretary and Compliance Officer

114788 Points Joined January 2009

Originally posted by : Priyanka
	Thanks Ankur Sir, But please clarify "every company (including Non-banking Financial Companies and Residuary Non-banking Companies) is required to file the information" doesn't it cover every company

Well as per my understanding every company here means company having unpaid and unclaimed dividend amount in IEPF.

Rest you can verify the same from FAQ posted on IEPF website. Link given below:

https://www.iepf.gov.in/IEPF/faq.html

After opening the link plz click on: "Application"

Thanks

Richa Agarwalla

Practising Company Secretary

33 Points Joined April 2010

Sir,

is filing of Form 5INV mandatory for those companies that have declared dividends but no amount is pending in the fund?

Ankur Garg

Company Secretary and Compliance Officer

114788 Points Joined January 2009

Originally posted by : Richa Ginoria
	Sir, is filing of Form 5INV mandatory for those companies that have declared dividends but no amount is pending in the fund?

It is required to be filed if company have declared dividend and there is some unpaid and unclaimed dividend in the hands of the company. In case entire declared dividend paid off within section 207 time limit and there is no unclaimed dividend, no need to file form 5INV.

Rest you can verify the same from FAQ posted on IEPF website. Link given below:

https://www.iepf.gov.in/IEPF/faq.html

After opening the link plz click on: "Application"

Thanks

CS Ankur Srivastava

Company Secretary & Compliance Officer

17858 Points Joined November 2008

It is applicable only to the companies having unpaid and unclaimed dividend.

CS MOHIT SALUJA

PRACTICING CS Jalandhar 9914558709

5155 Points Joined April 2010

here are some queries:

1. Its given "Every Company". It means it applies over public companies only or even on Private Companies and Closely held companies also.

2. it talked about unclaimed and unpaid amount. it means not only the dividend but also the application money pending and due for refund information is also required to be entered in Form 5 INV. So wanna asking is it also applicable over Private Limited companies also.

CS Ankur Srivastava

Company Secretary & Compliance Officer

17858 Points Joined November 2008

Every company including private company has to within 90 days of holding its AGM mandatorily submit form 5 INV every year identify the unclaimed amounts as referred to in section 205C(2) untill such amount has been transferred to Investor Education and Protection Fund.

Yes, your observation is perfectly right Share Application money due for refund is also covered under the above circular.

Form 5 INV is to be filed to report the unclaimed amount lying with the Company.

Furthermore, form 5 INV is to report the moneys referred to in clauses (a) to (d) of Section 205C(2).

SONY SARKAR

Executive CS

21 Points Joined June 2013

THE DURATION MENTIONED IN THE CIRCULAR IS WITHIN 90 DAYS OF HOLDING OF AGM. WHAT IF A COMPANY DOES NOT FILE THE FORM WITHIN 90 DAYS. DOES IT HAVE TO PAY ANY PENALTY ON THE SAME.

PLEASE REPLY....ITS URGENT