IEPFA (accounting, audit, transfer and refund) amendment rules

Investor Education and Protection Fund Authority (IEPFA) (Accounting, Audit, Transfer and Refund) Second Amendment Rules, 2021.

G.S.R. 785 (E).— In exercise of the powers conferred under sub-sections (1), (2), (3), (4), (8), (9), (10) and (11) of section 125 and sub-section (6) of section 124 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:-

1. (1) These rules may be called the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Second Amendment Rules, 2021.
   (2) These rules shall come into force on the date of their publication in Official Gazette.
   
2. In the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016, (hereinafter referred to as the Principle Rules), in rule 7, in sub-rule (7), in the proviso, the words “Advance Receipts”, shall be omitted.
   
   3 In the Principal Rules, in Schedule II, –
   
   (1) for the words, figures and bracket, “Rs 2,00,000 (Rupees Two Lakh only),” wherever occurring, Rs 5,00,000 (Rupees five lakh only), shall be substituted.
   
   (2) under heading, “Documents to be submitted to the Authority to register transmission of securities”, under subheading “ A. Documentary requirement for securities held in physical mode”,-
   
   (i) in item 1, under the heading, “Where the shares are held singly with nomination,-
   (a) in sub-item „1.1‟, for the word, “nominee”, the word, “claimant” shall be substituted;
   (b) for sub-item „1.2‟, the following shall be substituted, namely: –
   “Copy of death certificate of security holder attested by claimant.”
   (c) for sub-item „1.4‟, the following shall be substituted, namely: –
   “The original share certificate is to be sent to the company and scanned copy to be attached with the form”.
   
   (ii) in item 2, under the heading, “Where the shares are held singly without nomination, the following documents in addition to the documents specified at paragraph 1 are required,”-
   (a) in sub-item‟2.2‟, for clause (a), the following shall be substituted, –
   “Succession certificate or probate of will or will or letter of administration or Decree, as may be applicable in terms of Indian Succession Act, 1925. (39 of 1925) or any other Decree or Order of any Court or Tribunal”.
   (b) for sub-item, „2.3‟, the following shall be substituted, namely: –
   “For value of securities more than 5,00,000 (Rupees Five lakh only) per issuer company as on date of application: Succession certificate or probate of will or will or letter of administration or Decree, as may be applicable in terms of Indian Succession Act, 1925. (39 of 1925) or any other Decree or Order of any Court or Tribunal.”.
   (c) after sub-item „2.3‟ and before item „3‟, the following explanation shall be inserted, namely: –
   
   “Explanation:
   (1) The Company may enhance the limit of Rs. 5,00,000 (Rupees Five lakh only) per issuer company in accordance with SCHEDULE VII of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, after taking approval of its Board of Directors and provide copy of Board resolution to Authority at the time of verification of claim.
   
   (2) for the case where will is provided, following documents shall also be required:
   (a) Legal heirship certificate issued by Competent Authority;
   (b) No Objection Certificate from all legal heirs in favor of the claimant;
   (c) Affidavit from witness about confirmation of will wherever alive or death certificate of such witness;
   (d) Affidavit with regard to the will as last will and no matter is pending before any court with regard to such will;
   (e) Surety affidavit by at least two sureties with their PAN Card.”.
   
   (iii) in item „3‟, under the heading “Where the shares are held jointly with nomination”, –
   (a) in sub-item „3.1‟, for the word, “nominee”, the word, “claimant” shall be substituted;
   (b) for sub-item „3.2‟, the following shall be substituted, namely: –
   “Copy of death certificate of security holder attested by claimant.”
   (c) for sub-item „3.4‟, the following shall be substituted, namely: –
   “The Original share certificate is to be sent to the company and scanned copy to be attached with the form”.
   
   (iv) in item „4‟, under the heading, “Where the shares are held jointly without nomination, the following documents in addition to the documents specified at paragraph 3 are required”,-
   (a) for sub-item „4.2‟, the following shall be substituted, –
   “Succession certificate or probate of will or will or letter of administration or Decree, as may be applicable in terms of Indian Succession Act, 1925. (39 of 1925) or any other Decree or Order of any Court or Tribunal”.
   (b) for sub-item „4.3‟, the following shall be substituted, namely: –
   “For value of securities more than 5,00,000 (Rupees Five lakh only) per issuer company as on date of application: Succession certificate or probate of will or will or letter of administration or Decree, as may be applicable in terms of Indian Succession Act, 1925. (39 of 1925) or any other Decree or Order of any Court or Tribunal.”.
   (c) after sub-item „4.3‟, and before sub-heading „B‟ the following explanation shall be inserted, namely: –
   
   “Explanation:
   (1) The Company may enhance the limit of Rs. 5,00,000 (Rupees Five lakh only) per issuer company in accordance with SCHEDULE VII of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, after taking approval of its Board of Directors and provide copy of Board resolution to Authority at the time of verification of claim.
   (2) for the case where will is provided, following documents shall also be required:
   (a) Legal heirship certificate issued by Competent Authority;
   (b) No Objection Certificate from all legal heirs in favor of the claimant;
   (c) Affidavit from witness about confirmation of will wherever alive or death certificate of such witness;
   (d) Affidavit with regard to the will as last will and no matter is pending before any court with regard to such will;
   (e) Surety affidavit by at least two sureties with their PAN Card.”.
   
3. In the Principal Rules, in Schedule II, under heading, “Documents to be submitted to the Authority to register transmission of securities”, under sub-heading “B. Documentary requirement for securities held in DEMAT mode”,-
   
   (i) in item „1‟: –
   (a) in sub-item „1.1‟ for the word, “nominee”, the word, “claimant” shall be substituted;
   (b) for sub-item „1.2‟, the following shall be substituted, namely: –
   “Copy of death certificate of security holder attested by claimant.”
   (c) for sub-item „1.4‟, the following shall be substituted, namely: –
   “Copy of transaction statement duly attested by Claimant.”.
   
   (ii) in item „2‟, –
   (a) in sub-item‟2.2‟, for clause (a), the following shall be substituted, –
   “Succession certificate or probate of will or will or letter of administration or Decree, as may be applicable in terms of Indian Succession Act, 1925. (39 of 1925) or any other Decree or Order of any Court or Tribunal”.
   (b) for sub-item, „2.3‟, the following shall be substituted, namely: –
   “For value of securities more than 5,00,000 (Rupees Five lakh only) per issuer company as on date of application: Succession certificate or probate of will or will or letter of administration or Decree, as may be applicable in terms of Indian Succession Act, 1925. (39 of 1925) or any other Decree or Order of any Court or Tribunal.”.
   (c) after sub-item „2.3‟ and before item „3‟, the following explanation shall be inserted, namely: –
   
   “Explanation:
   (1) The Company may enhance the limit of Rs. 5,00,000 (Rupees Five lakh only) per issuer company in accordance with SCHEDULE VII of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, after taking approval of its Board of Directors and provide copy of Board resolution to Authority at the time of verification of claim.
   (2) for the case where will is provided, following documents shall also be required:
   (a) Legal heirship certificate issued by Competent Authority;
   (b) No Objection Certificate from all legal heirs in favor of the claimant;
   (c) Affidavit from witness about confirmation of will wherever alive or death certificate of such witness;
   (d) Affidavit with regard to the will as last will and no matter is pending before any court with regard to such will;
   (e) Surety affidavit by at least two sureties with their PAN Card.”.
   
   (iii) in item „3‟, –
   (a) in sub-item „3.1‟ for the word, “nominee”, the word, “claimant” shall be substituted;
   (b) for sub-item „3.2‟, the following shall be substituted, namely: –
   “Copy of death certificate of security holder attested by claimant.”
   (c) for sub-item „3.4‟, the following shall be substituted, namely: –
   “Copy of transaction statement duly attested by Claimant.”.
   (iv) in item „4‟, –
   (a) in sub-item „4.2‟, for clause (a), the following shall be substituted, –
   “Succession certificate or probate of will or will or letter of administration or Decree, as may be applicable in terms of Indian Succession Act, 1925. (39 of 1925) or any other Decree or Order of any Court or Tribunal”.
   (b) for sub-item „4.3‟, the following shall be substituted, namely: –
   “For value of securities more than 5,00,000 (Rupees Five lakh only) per issuer company as on date of application: Succession certificate or probate of will or will or letter of administration or Decree, as may be applicable in terms of Indian Succession Act, 1925. (39 of 1925) or any other Decree or Order of any Court or Tribunal.”.
   (c) after sub-item „4.3‟, and before Schedule III, the following explanation shall be inserted, namely: –
   
   “Explanation:
   (1) The Company may enhance the limit of Rs. 5,00,000 (Rupees Five lakh only) per issuer company in accordance with SCHEDULE VII of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, after taking approval of its Board of Directors and provide copy of Board resolution to Authority at the time of verification of claim.
   (2) for the case where will is provided, following documents shall also be required:
   (a) Legal heirship certificate issued by Competent Authority;
   (b) No Objection Certificate from all legal heirs in favor of the claimant;
   (c) Affidavit from witness about confirmation of will wherever alive or death certificate of such witness;
   (d) Affidavit with regard to the will as last will and no matter is pending before any court with regard to such will;
   (e) Surety affidavit by at least two sureties with their PAN Card.”.
   
4. in the Principal Rules, in Schedule III, under the heading, “Documents to be submitted to the Authority in case of loss of securities held in physical mode”, –
   (i) in item „1‟, for the word, “Notarised”, the word, “Self attested”, shall be substituted;
   (ii) in item „2‟, the words, “value equal to market value that of shares as on date of execution”, shall be omitted;
   (iii) in item „4‟, for letters, figures and symbols, “Rs 10,000”, the letters, figures and symbols, “Rs 5,00,000” shall be substituted.
   
5. in the Principal Rules , in Schedule IV, under the heading, “ Procedure to be followed while disposing the claims”, in item „2‟, –
   (i) sub-item (iv) shall be omitted;
   (ii) in sub-item (ix), the words, “verification of transaction statement of the unclaimed suspense account of the company. At any point of time, details of every investor whose shares have been transferred from unclaimed suspense account, may be called from depository.” shall be omitted.
   (iii) in sub-item (x), after letters, symbols, figures and words, “IEPF-1 or INV-1 or IEPF-1A” and before the symbol, “.”, the word, letters, symbol and figure, “or IEPF-7” shall be inserted.
   
6. in the Principal Rules, for the Form No. IEPF-5, the following Form shall be substituted:-

FORM NO. IEPF-5 at Page No. 13

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