EXTENSION OF TIMELINES BY SEBI FOR NOMINATION IN DEMAT ACCOUNT AND PHYSICAL HOLDING

 

Dear Investors,

 

SUBJECT: EXTENSION OF TIMELINES FOR: 

(i)                  Nomination in eligible demat accounts and

(ii)               Submission of PAN, Nomination and KYC details by physical security holders; and Voluntary nomination for trading accounts

 

Here came up again One of the Most awaited Circular issued by SEBI issued vide Ref No SEBI/HO/MIRSD/POD-1/P/CIR/2023/158 dated September 26, 2023 for which everyone was waiting since last Circular of SEBI wherein the timeline of September 30, 2023 was prescribed by SEBI circular SEBI/HO/MIRSD/MIRSD-PoD-1/P/CIR/2023/42 dated March 27, 2023.

 

Based on the representations received from Exchanges, Depositories, Brokers’ Associations and various other stakeholders, investors, Registrars Association of India and various other stakeholders, it has been decided to extend the last date for choice of nomination, submission of PAN, Nomination, Contact details, Bank A/c details and Specimen signature for their corresponding folio numbers to December 31, 2023.

 

FOR TRADING AND DEMAT ACCOUNTS

 

1.       SEBI, vide circular no. SEBI/HO/MIRSD/RTAMB/CIR/P/2021/601 dated July 23, 2021, stipulates that trading accounts and demat account which do not have ‘choice of nomination’ by September 30, 2023¹ shall be frozen.

 

2.       In this respect, based on the representations received from the Exchanges, Depositories, Brokers’ Associations and various other stakeholders, the following  has been decided:

 

2.1.  Submission of ‘choice of nomination’ for trading accounts has been made voluntary as a step towards ease of doing business;

 

2.2.  With respect to demat accounts, it has been decided to extend the last date for submission of ‘choice of nomination’ to December 31, 2023.

 

 

FOR PHYSICAL SECURITY HOLDERS

 

3.       As regards physical securities, SEBI, vide circular no. SEBI/HO/MIRSD/MIRSD- PoD-1/P/CIR/2023/37 dated March 16, 2023, stipulated that folios shall be frozen if PAN, Nomination, Contact details, Bank A/c details and Specimen signature are not submitted by the holders by September 30, 2023.

 

4.       Based on the representations received from investors, Registrars Association of India and various other stakeholders, it has been decided to extend the last date  for submission of PAN, Nomination, Contact details, Bank A/c details and Specimen signature for their corresponding folio numbers to December 31, 2023.

 

5.       Stock Exchanges, Depositories, RTAs and Listed Companies are advised to:

a)      take necessary steps to implement the provisions of this circular, including making necessary amendment to the relevant bye-laws / business rules / regulations / operational instructions, as the case may be;

b)      bring the provisions of this circular to the notice of their respective constituents and also disseminate this circular on their websites;

c)       communicate to SEBI, the status of the implementation of the provisions of this circular; and

d)      monitor the compliance of this circular.

 

6.       This circular shall come into effect immediately in supersession of relevant provisions contained in various circulars issued by SEBI including Master Circulars issued for Stock Brokers and Registrars to an Issue and Share Transfer Agents dated May 17, 2023.

 

Thanks & Regards,

CS Ravi Garg

E-mail: csravi2014@gmail.com

 

:Note for Investors/ Claimant:-

Feel free to discuss any query related to Claim of Shares and Dividend from IEPF Authority.

 

Disclaimer:

IN NO EVENT THE AUTHOR SHALL BE LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL OR INCIDENTAL DAMAGE RESULTING FROM OR ARISING OUT OF OR IN CONNECTION WITH THE USE OF THIS INFORMATION.

 

Please do not print if not necessary. Let's contribute to a better society.

 

 

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CLAIM OF UNCLIAMED DIVIDEND AND SHARES TRANSFERRED TO IEPF AUTHORITY (Series 2, Article 1 - 2023)

CLAIM OF UNCLIAMED DIVIDEND AND SHARES TRANSFERRED TO IEPF AUTHORITY

(Series 2, Article 1 - 2023)

 

 

CONTENT OF THE ARTICLE:

 

(A) BRIEF NOTATION (B) STATUTORY ASPECTS AND PROVISIONS IN BRIEF (C) STATUTORY PROVISIONS: (D) STEP-WISE PROCEDURE FOR REFUND OF SECURITIES FROM IEPF (UNCLAIMED DIVIDEND AND SHARES) (E) Timelines as specified by SEBI for different requested by  Investor	Covered in this Series 2; Article No 1
(F)  PRACTICAL ASPECTS / PROCEDURE ON THE PART OF SHAREHOLDER / CLAIMANT (G) MOST IMPORTANT THINGS TO BE NOTED BY INVESTOR (H) FAQS ON IEPF CLAIM PROCESS	Will cover in Next  Article, Series 2; Article No 2

(A)    BRIEF NOTATION

 

Dear Reader,

In this Article, we are back once again with an aim we had i.e, to create a Platform specifically for the Investors whose investments were transferred to Investor education and protection fund. Still we coming across several cases, where a General mass of people stand un-aware of their shareholding/investments which lies with the Company due to Non-updation of KYC and other several reasons. Once they came to know that their shareholding/investment have been transferred to IEPF, in some of the cases they stand helpless regarding the practical aspects  and the procedure to claim the same though online portal i.e, IEPF website which is currently a web-based Form and much easier as compare to the earlier situation.

 

After transfer of shares, shareholder seeks the reason of transfer and wish to claim the same form the IEPF authority for which form is available on IEPF Website. Here is responsibility of the Company Secretary cum Nodal Officer of the Company to provide solution and guidance to the concerned claimant/shareholder.

 

(B)      STATUTORY ASPECTS AND PROVISIONS IN BRIEF

 

MCA has issued Investor Education and Protection Fund Authority Rules, 2017. As per these rules, any money transferred to the Unpaid Dividend Account of a company in pursuance of this section which remains unpaid or unclaimed for a period of seven years from the date of such transfer shall be transferred by the company along with interest accrued, if any, thereon to Investor education and protection fund. Recently MCA has amended The Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Second Amendment Rules, 2019 dated 14^th August, 2019 which was effective from 20^th September, 2019.

 

Any person, whose unclaimed or unpaid amount has been transferred by the company to IEPF may claim their refunds from the IEPF authority. For claiming such amount, claimant needs to file web based Form IEPF-5 along with requisite documents. Access link to the refund webpage of IEPF Authority is www.iepf.gov.in/IEPFA/refund.html 

 

Hence once again we came here with the detailed and revised procedure to claim the shares and dividend from the IEPF authority and practical aspects of the same from the point of view of shareholder.

 

(C)      STATUTORY PROVISIONS:

 

As you are aware, dividend declared by the Company is remitted either electronically to the designated bank account or by sending dividend warrant to the registered address of the shareholders. 

 

As per Section 124(5) of the Companies Act, 2013, any dividend remaining unpaid/unclaimed for a period of 7 (seven) years is required to be transferred by the Company to the Investor Education and Protection Fund (IEPF) established by the Central Government. The Company has regularly uploaded on its website and also on the website of the Ministry of Corporate Affairs, Government of India, full details of such unpaid or unclaimed dividends before transferring to IEPF.

 

 

 

(D)     STEP-WISE PROCEDURE FOR REFUND OF SECURITIES FROM IEPF (UNCLAIMED DIVIDEND AND SHARES)

 

 

1.     Initially Claimant need to create a Login ID from the Link viz http://www.mca.gov.in/mcafoportal/login.do and Click Register Now, fill the details and submit.

 

2.     Login with the Portal and Click on Form IEPF-5 from the Tab MCA Services – Investor Services, a web based Form IEPF-5 shall be open

 

3.     Fill the complete and correct details in web Form IEPF-5 for claim of Shares, dividend or any other investments which have been transferred to IEPF. Read the instructions provided on the website/instruction kit along with the e-form carefully before filling the form.

 

4.     For filling-up the details in web Form IEPF-5, Claimant should be ready with the following information / documents:

 

a)     Name as per PAN and Fill accordingly as in First, Middle and Last Name and Copy of PAN

b)     Father’s name as per PAN

c)      Date of Birth as per PAN and Click on VERIFY PAN

d)     Enter Address, Mobile No,

e)      Aadhaar number if the applicant is an Indian citizen and passport/OCI or PIO card number if the applicant is NRI or foreigner

f)       Details of the company including the CIN no.

g)      Particulars regarding the shares to be claimed

h)     Particulars about the amount of dividend to be claimed

i)       Particulars of deposits and securities mentioned year wise, if any

j)       Details of bank account and in which the refund of the claim will be made in case of a Resident Indian.

k)     Details of Demat Account Number

 

5.     After filling the form, make requisite attachments and proceed further;

 

6.     Enter the Mobile No and email id for the OTP Verification, enter the OTP and submit.

 

7.     On successful submission of the Form IEPF-5, an acknowledgement challan will be generated indicating the SRN. Please note the SRN for future tracking of the form.

 

8.     Download the following documents:

(a)  Form IEPF-5,;

(b)  Acknowledgement;

(c)  Indemnity Bond.

 

9.     Get the documents signed and notarised as per the requirement and submit the same with Nodal officer of the Company along with KYC and other documents.

 

(E)      TIMELINES AS SPECIFIED BY SEBI FOR DIFFERENT REQUESTS BY  INVESTOR

 

“IGNORE OF LAW IS NO EXCUSE ~ BE AWARE”

 

We have compiled the different categories of Investor Service Request for helping the Investors/Claimant to know their right to seek feedback from respective Company or its Registrar & Share Transfer Agent (R&TA).

 

Timelines SEBI/HO/MIRSD/MIRSD_RTAMB/P/CIR/2021/670 of November 26, 2021
INVESTOR SERVICE REQUEST
Nature of Service	Expected Timelines (Number of days)
Processing of Transmission Request (SEBI/HO/MIRSD/MIRSD_RTAMB/P/CIR/2022/65)	30
Processing of Issue of Duplicate Security Certificate Request (Letter of Confirmation)	30
Processing of Dematerialization Request	15
Processing of Remat Request	30
Processing of Transposition Request	15
I. PROCESSING of REQUEST FOR CHANGE IN UPDATION OF
A. Name	30
B. Signature	30
C. Nomination	30
D. Contact Details (Address, E-Mail Address and Mobile Number)	15
E. Bank Account Details	15
II. PROCESSING of REQUEST FOR UPDATION of PAN	15
Processing of Re-Validation of Dividend I Interest I Redemption Instruments And Sending The Remittance Request Files To The Bank I Company	15
GRIEVANCE REDRESSAL
Providing Response To The Inquiries of The Investors And Redressal of Grievance	30
OTHER OPERATIONAL ACTIVITIES
Allotment of Securities (IPO)	6
INTIMATION REGARDING DISTRIBUTION of CORPORATE BENEFITS (DIVLDEND, BONUS, STOCK SPLIT)
A. E-Mail Communication	15
B. Physical Communication	30

-:Note for Investors/ Claimant:-

Feel free to discuss any query related to Claim of Shares and Dividend from IEPF Authority.

 

Disclaimer:

IN NO EVENT THE AUTHOR SHALL BE LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL OR INCIDENTAL DAMAGE RESULTING FROM OR ARISING OUT OF OR IN CONNECTION WITH THE USE OF THIS INFORMATION.

 

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