Unclaimed dividend transfer to IEPF
What is a dividend?
Generally, a dividend is a part of the earnings of a company that is being distributed among its shareholders. Under the Companies Act, 2013 Section 2 (35) defines a dividend as a specified proportion of profit from the net profit of the company for a financial year that is not being retained in the business and has been distributed among the shareholders of the company.
Transfer of Unpaid or Unclaimed Dividend transfer to IEPF: Conformance and Basic Guidelines
Filing of Form IEPF-1
The e-rules forms are as follows:
According to Rule 5(2) of the Investor Education and Protection Fund Authority (Accounting, Transfer, Audit, and Refund) Rules 2016, any amount of money that is to be attributed to this fund under Section 125(2) of the Companies Act must be submitted online with the furthermore of the e-form IEPF-1 for the intent of the declaration of the value credited to the Investor Education and Protection Fund in less than 30 days from the date estimated from the expiration date.
Step-by-step instructions for completing the IEPF-1 form:
The business should be operational.
Valid CIN (Corporate Identification Number) or CIN (Banking Institutional Identification Number) (BCIN).
Company information is required, such as the company's name, registered address, and email address.
The company must credit the IEPF fund with the intended amount.
The date on which the unpaid dividend was transferred to the unpaid dividend account established by the company under Section 124 should be specified. The companies are owed a refund for the application money they received for the allotment of any securities.
Other details, such as which financial year the money belongs to, etc.
The date of the board resolution authorising the signatory to sign the form is included, as well as the director, managing director, CFO, CEO, or company secretary's signatures.
Filling out form IEPF-2:
The IEPF-2 is used for the following purposes:
To submit a statement detailing the amount of unpaid or unclaimed dividends.
To provide information on the Nodal and Deputy Nodal Officers' appointments.
To provide or update the Nodal Officer's information.
To change or remove the deputy nodal officer's information.
As per Section 7 (2A) of the Investor Education and Protection Fund Jurisdiction (Accounting, physical share transfer, Audit, and Refund) Rules 2016, each corporation that is considered necessary to credit shares or other funds or deposit or physical share transfer to the IFPF fund must designate a Nodal Officer, who is a director, company secretary, or chief financial officer of a company and is charged with confirming assertions and arranging with the fund's authorities. If a firm fails to elect a nodal officer, the firm's director is considered to be a nodal officer, and the nodal officer as appointed is liable for the Deputy Nodal officer's actions.
Transfer of company shares
Is it possible to transfer of company shares to another?
From one brokerage to another, you can transfer an entire stock trading account or specific stocks. The Automated Customer Account Transfer Service, or ACATS, is a centralised system for transferring an account immediately.
