MCA requires Cos. to file form IEPF-7 within 30 days of remittance of funds to bank a/c of IEPF Authority

  • Blog|News|Company Law|
  • 2 Min Read
  • By Taxmann
  • |
  • Last Updated on 3 January, 2022

MCA requires Cos. to file form IEPF-7; IEPF Authority

Notification no. G.S.R. 888(E), Dated: 28.12.2021

Ministry of Corporate Affairs (MCA) has notified the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer, and Refund), Third Amendment, Rules, 2021 (IEPF Rules). As per the amendment rules, companies remitting any amount to the Fund are required to furnish details thereof 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 IEPF (Accounting, Audit, Transfer, and Refund), Third Amendment, Rules, 2021.

In respect of the manner of transfer of shares u/s 24(6) to IEPF, the amended norms provide that 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).

A new sub-rule (11A) has been inserted to rule 6 which provides that in case of an application is received for the purchase of minority shareholding, the Authority may receive the amount entitled on behalf of the minority shareholders from the company as per procedures provided Section 236(5) and credit the amount to the Fund and a separate ledger account shall be maintained for such proceeds. However, the 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:

    1. whether the acquirer to whom the shares held by the Authority would be transferred has fulfilled the requirements of section 236;
    2. whether the shares have been valued in accordance with the provisions of sub-section (2) of section 236 and the rules made thereunder; and
    3. any other relevant information.

It further provides that he 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.

Click Here To Read The Full Notification

Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.

Leave a Reply

Your email address will not be published. Required fields are marked *

Everything on Tax and Corporate Laws of India

To subscribe to our weekly newsletter please log in/register on

Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied