{"id":45485,"date":"2022-07-20T11:44:51","date_gmt":"2022-07-20T06:14:51","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=45485"},"modified":"2022-07-20T11:44:52","modified_gmt":"2022-07-20T06:14:52","slug":"what-are-the-iepf-rules-regards-unclaimed-investments","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/what-are-the-iepf-rules-regards-unclaimed-investments\/","title":{"rendered":"What are the IEPF Rules Regards Unclaimed Investments"},"content":{"rendered":"\n<p><a href=\"https:\/\/corpbiz.io\/learning\/investor-education-and-protection-fund-iepf\/\"><strong>Investor Education and Protection Fund (IEPF)<\/strong><\/a> promote investors\u2019 awareness and protect their interests. IEPF Rules are made for unclaimed investments that a company retains for seven years for payment to investors and, after the expiry of these seven years, transfer the same to IEPF.\u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">IEPF Rules: Unpaid and\nUnclaimed Amounts lying with Companies<\/h2>\n\n\n\n<p>The Central Government has made <strong>Investor Education and Protection Fund<\/strong><sup><a href=\"https:\/\/www.iepf.gov.in\/content\/iepf\/global\/master\/Home\/Home.html\"><strong>[1]<\/strong><\/a><\/sup> (Uploading of information regarding unpaid and unclaimed amounts lying with companies) Rules, 2012, which came into existence on 20th May 2012. Central Government made these IEPF Rules in the exercise of powers conferred by Section 642 of the Companies Act, 1956. This includes the following information:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Filing of Information about\nunpaid and unclaimed amounts<\/h3>\n\n\n\n<p>Companies, including\nNon-banking Financial Companies and Residuary Non-Banking Companies, hold an\nAnnual General Meeting and, within 90 days of such meeting till completion of\nseven years, identify unclaimed investments, then separately furnish and upload\nthem on its website as well as on the Ministry\u2019s website or any other\nGovernment specified website a statement or information through a prescribed eForm\n5 INV for each year separately. The information it contains is as follows:<\/p>\n\n\n\n<ul><li>Names and address (last known) of the person entitled to receive the amount<\/li><li>Nature of the amount<\/li><li>Details of the amount to which each person is entitled<\/li><li>The due date for transfer into IEPF<\/li><li>Other relevant information for the purpose<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Verification of eForm<\/h3>\n\n\n\n<p>Information that is\nprovided by the Companies and Non-Banking Financial Institutions\/Companies in\neForm 5 INV are duly verified and certified by a Chartered Accountant (CA), a\nCompany Secretary (CS), and a Cost Accountant practising in India or Statutory\nAuditors of the Company.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Default in filing\ninformation<\/h3>\n\n\n\n<p>If a Company or Non-Banking\nFinancial Company fails to furnish and upload information or furnishes and\nuploads false information on its website, then the Company and every officer at\nfault are held liable. Section 629A of the Companies Act, 1956 is applicable in\nthat case, which talks about the Penalties in a case where no specific penalty\nis provided in the Act. Section 629A states that the Company or the person at\ndefault has to pay a fine which may extend to five hundred Rupees. In case of\ncontinuity of such default, a further fine may extend to fifty rupees every day\nafter the first contravention\/default continues.&nbsp;&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Essentials of Form 5 INV<\/h3>\n\n\n\n<p>The Essential Particulars\nof Form 5 INV under IEPF Rules are as follows:<\/p>\n\n\n\n<ul><li>CIN (Corporate Identity Number) of Company<\/li><li>GLN (Global Location Number) of Company\u00a0<\/li><li>Name of Company\u00a0<\/li><li>Address of registered office of the Company<\/li><li>Email ID of Company<\/li><li>Financial Year ended<\/li><li>Date of Annual General Meeting (AGM) or Due Date, whichever is earlier<\/li><li>Status of registration with Reserve Bank of India (RBI)<\/li><li>Number of small shareholders of Company<\/li><li>Details of Unclaimed and Unpaid Amounts<\/li><li>Amount of Unclaimed and Unpaid Dividend<\/li><li>Amount of application money received and due for refund<\/li><li>Amount of matured deposits<\/li><li>Amount of matured debentures<\/li><li>Interest accrued on the amounts mentioned above<\/li><\/ul>\n\n\n\n<ul><li>Verification<\/li><li>Signature of Managing Director, Director, Manager or Secretary of Company (with Designation)<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">IEPF Rules: Awareness and\nProtection of Investors<\/h2>\n\n\n\n<p>The Investor Education and\nProtection Fund (awareness and protection of investors) Rules, 2001 talks about\nthe amount to be credited by companies to the Fund (IEPF). Every Company, after\ncrediting the account of the Fund, furnishes a statement in Form duly certified\nby a Chartered Accountant (CA), a Company Secretary (CS), a Cost Accountant\npractising in India or Statutory Auditors of the Company to the concerned\nRegistrar of Company. However, each Company keeps a record relating to folio\nnumber, Certificate Number, etc. in respect of the person to whom the amount of\nunpaid or unclaimed dividend, application money, matured deposit or debentures,\ninterest accrued or payable, for a period of three years and the Committee or\nSub-Committee have powers to inspect all such records of that period.&nbsp;<\/p>\n\n\n\n<p>This IEPF Rules has also\nmentioned the list of Unclaimed investments, which is as follows:<\/p>\n\n\n\n<ul><li>Unpaid and Unclaimed Dividends<\/li><li>Unpaid application money received by the Company for allotment of securities and due for refund<\/li><li>Unpaid Matured Deposit<\/li><li>Unpaid Matured Debentures<\/li><li>Interest accrued on all of them<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Conclusion&nbsp;<\/h2>\n\n\n\n<p> Investor Education and Protection Fund (IEPF) protects the interest of investors. In IEPF Rules are made under the Companies Act, 1956\/2013. These Rules discuss all the required procedures and other relevant information related to the unclaimed investments.\u00a0 <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our Article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/what-is-unclaimed-dividend-how-to-claim-it-from-iepf\/\">What is Unclaimed Dividend: How to Claim it from IEPF?<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Investor Education and Protection Fund (IEPF) promote investors\u2019 awareness and protect their interests. IEPF Rules are made for unclaimed investments that a company retains for seven years for payment to investors and, after the expiry of these seven years, transfer the same to IEPF.\u00a0 IEPF Rules: Unpaid and Unclaimed Amounts lying with Companies The Central [&hellip;]<\/p>\n","protected":false},"author":36,"featured_media":45488,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[128],"tags":[2514],"acf":{"service_id":"230"},"authorName":"Shambhavi Suyesha","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/03\/IMG-20220324-WA0005.jpg","authorDescription":"Shambhavi holds a strong legal background, having completed her BA LLB and LLM. She is particularly interested in legal research and writing, and wishes to utilise her knowledge to create informative legal content. She is an analytical researcher and keeps herself updated about the current legal affairs. She also holds prior experience in publishing articles on assorted legal areas.","postViews":2721,"readingTime":3,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/45485"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/36"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=45485"}],"version-history":[{"count":8,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/45485\/revisions"}],"predecessor-version":[{"id":45496,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/45485\/revisions\/45496"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/45488"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=45485"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=45485"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=45485"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}