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

Investor Education and Protection Fund Authority (IEPFA) (Accounting, Audit, Transfer and Refund), Third Amendment, Rules, 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:-

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.”.

Note: The principal rules were published in the Gazette of India vide number G.S.R. 854 (E), dated the 5th September, 2016 and amended vide notification numbers G.S.R. 178(E) dated the 28th February, 2017, G.S.R. 1267 (E) dated the 13th October, 2017, G.S.R. 472 (E) dated the 22nd May, 2018, G.S.R. 343(E) dated the 1st May, 2019, G.S.R. 571(E) dated the 14th August, 2019, G.S.R. 396(E) dated the 09th June, 2021 and G.S.R. 785(E) dated the 09th November, 2021.

Notification

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