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Here, I come up with the practical aspects and timeline as prepared for one the Company, hope this will be helpful for you to analyse in details.
(The Shares on which dividend warrant has not been encashed by the shareholders for a continuous period during the last seven years).
Action to be taken
All such shares in respect of which dividend has not been paid or claimed for seven consecutive years or more shall be transferred to IEPF
Section 124(6) of CA, 2013
Company to identify and prepare a list of all the shareholders who have not encashed the dividend warrants for a continuous period of last seven years, containing the details of name of the shareholder, Folio No, Demat Account No and number of shares etc, except the shares on which there is specific order of the court of Tribunal or statutory authority restraining any transfer of shares and where such shares are pledged or hypothecated under the provisions of Depositories Act, 1996.
The Shares shall be credited to the 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
Rule 6(1) of IEPF Authority ( Accounting, Audit, Transfer and Refund) Rules, 2016 (“IEPF Rules”)
Provided that, in case the beneficial owner has encashed any dividend warrant 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.
Proviso (1) to Rule 6
The due date for transfer of shares, where the period of seven years has been completed or being completed during the period from September 7, 2016 to October 31, 2017, shall be deemed to be October 31, 2017
Second Proviso to Rule 6 (1) of IEPF Rules
Provided that the 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.
Third proviso to the Rule 6 of IEPF Rules
Board of Directors of the Company to pass a resolution authorizing the company secretary or any other person to sign the necessary documents.
Hold a board meeting or pass a resolution by circulation
Display the details of the shareholders whose shares are proposed to be transferred to the IEPF authority, on the website
Display on the website
Company shall inform the shareholder concerned regarding the proposed transfer of shares
Send letter to all the shareholders at the latest available address
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 and Client Id are available on their website duly mentioning the website address
Publish newspaper advertisements in English and regional language
Every company which has remitted the amount to the Fund shall nominate a Nodal Officer for the purpose of coordination with the IEPF authority and communicate the contact details of the Nodal Officer duly indicating his or her designation, postal address, telephone and mobile number and the company authorised email id to the IEPF authority, within 15 days from the date of publication of these rules and the company shall display the name of the Nodal Officer and his email Id on its website.
Company to communicate the contact details of the Nodal Officer duly indicating his or her designation, postal address, telephone and mobile number and the company authorised email id to the IEPF authority, within 15 days from the date of publication of these rules and the company shall display the name of the Nodal Officer and his email Id on its website.
Action to be taken
FOR EFFECTING THE TRANSFER OF SHARES HELD IN DEMAT FORM
Company shall inform the depository by way of corporate action, where the shareholders have their account for transfer in favour of the authority
Rule 6(3)(c ) (i)
Company to prepare a list of shareholders containing the details of Name of the shareholder, Demat Account No (DP Id, Client Id) and number of shares held separately for CDSL and NSDL.
Rule 6(3)(c ) (i)
Company to inform
CDSL and NSDL by way of corporate action requesting them to transfer the shares to the demat account of IEPF authority
Upon receipt of such intimation from the Company, depository shall effect transfer of shares in favour of the Demat account of the IEPF Authority
CDSL and NSDL to transfer the shares to the Demat account of IEPF authority
SHARES HELD IN PHYSICAL FORM
Company Secretary or person authorised by the Board to make an application, on behalf of the concerned shareholder, to the Company, issue of new share certificate
Company Secretary/ authorised Person to submit application along with a list of shareholders containing details of name, Folio No, Share Certificate No and number of shares held
On receipt of application, Company to issue a new share certificate for each such shareholder
State on the face of the new share certificate, “issued in lieu of share certificate No ….. for the purpose of transfer to IEPF”
Particulars of every share certificate issued as above shall be recorded in the register maintained for the purpose
Maintain the Register of share certificates issued in Form No SH-02 for this purpose separately
Company shall inform the depository by way of corporate action to convert the share certificates into Demat form and transfer in favour of the IEPF authority
Company to inform CDSL or NSDL by w ay of corporate action to convert the duplicate share certificates into Demat form
Company shall make such transfers through corporate action and shall preserve the copies for its records
Company shall preserve the copies of letters/corporate action forms and records of transfers
While effecting such transfer, the company shall send a statement to the Authority in Form No IEPF-4 containing details of such transfer
Company to send the statement in Form
Company to file the details of shares which are not going to be transferred to the IEPF due to the reason that there is specific order of the court of Tribunal or statutory authority restraining any transfer of shares and where such shares are pledged or hypothecated under the provisions of Depositories Act, 1996
Proviso to Rule 6(3)(b)
File Form No IEPF-3
Within 30 days of the end of the Financial year
Voting rights on the shares transferred to the IEPF shall remain frozen until the rightful owner claims the shares
Company shall maintain the details of shareholding of each individual shareholders whose shares have been credited to the Demat account of the IEPF
All benefits accruing on such shares e.g. bonus shares, split, consolidation, fraction shares etc, except right shares shall also be credited to such Demat account
Any further dividend on such shares shall be credited to the Fund and a separate ledger account shall be maintained for such proceeds
Qualification: Company Secretary Company: RG Corporate Care Location: DELHI
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