SEBI Directs Transfer Of Unclaimed PSU Delisting Amounts To IPEF

Notification No. SEBI/LAD-NRO/GN/2025/256; Dated: 01.09.2025

1. SEBI Notifies Amendment to IPEF Regulations, 2025

The Securities and Exchange Board of India (SEBI) has notified the SEBI (Investor Protection and Education Fund) (Amendment) Regulations, 2025. The amendment aims to strengthen investor protection by streamlining the process of handling amounts payable to public shareholders who do not tender their shares during the delisting of public sector undertakings (PSUs).

2. Deposit of Unclaimed Amounts With Stock Exchange

As per the revised framework, any amount owed to shareholders who did not participate in a PSU delisting must be deposited into a specified account maintained by the designated stock exchange. These funds are required to be held in this account for a period of seven years, thereby providing sufficient time for investors to claim their dues.

3. Transfer of Funds to IEPF After Seven Years

If shareholders fail to claim their entitlement within the seven-year period, the unclaimed amounts must be transferred to the Investor Education and Protection Fund (IEPF) established under the Companies Act, 2013. The IEPF serves as a central repository to safeguard investor interests and ensure unclaimed funds are not left idle.

4. Credit to SEBI’s IPEF in Certain Cases

In cases where the transfer of funds to the IEPF is not possible due to legal or procedural reasons, the amendment provides that such amounts will be credited directly to SEBI’s Investor Protection and Education Fund (IPEF). This ensures that the funds continue to serve their intended purpose of promoting investor awareness and protection while providing a mechanism for investors to claim their dues.

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