Pursuant to the applicable provisions of the Companies Act, 2013 and the provisions of Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 (the “Rules”) notified by the Ministry of Corporate affairs effective September 7, 2016, all unpaid or unclaimed dividends are required to be transferred by the Company to the Investor Education and Protection Fund (“IEPF”) established by the Central Government, after completion of seven years.
The Rules, inter alia, also provide that, all shares in respect of which dividend(s) remain unpaid or unclaimed for a period of seven consecutive years shall be transferred to the DEMAT Account of the IEPF Authority (the “IEPF DEMAT Account”) within 30 days from the due date of transfer.
Both the unpaid / unclaimed dividend(s) and the corresponding shares transferred to the IEPF DEMAT Account including all benefits, if any, accruing on such shares after the date of transfer to the IEPF DEMAT Account can be claimed from the IEPF Authority. |