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Unpaid dividend transfer to iepf

Mathangi (Associate manager) (25 Points)

22 October 2012

When is the exact due date for transfer of unpaid dividend to IEPF?? Is there any grace period allowed? Please clarify.

Can dividend be paid to shareholders from unpaid dividend A/c even after the end of 7 years?

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4 Replies

Rakesh Dhanuka (Company Secretary) (478 Points)
Replied 22 October 2012

Unpaid dividend amount is to be transfered to IEPF within 30 days from the date it become due to transfer. There is no grace period for it.

Shareholder is not entitle to unpaid amount transfered to IEPF.

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ifla almaas (student) (84 Points)
Replied 25 October 2012

I agree with sir, but let me add something for your better understanding as per my limited knowledge ,

If a company issues dividend then the shareholder should claim it within 30 days of AGM ,if not after it shall be transferred to "Unpaid Dividend Account"

Suppose if a company issues dividend warrant on 15th September,2005 and the dividend amount lies unclaimed for 7 years then the company freezes the Unpaid dividend account on 14th September,2012 and remits the amount within 30 days to branches of Punjab National Bank as per the IEPF rules so the due date for transfer of unclaimed dividen/amounts to IEPF Fund here would be 14th October,2012.

A shareholder can claim this amount before 14th September,2012 but after this date none of the applications shall be entertained.

CS Ankur Srivastava (Company Secretary & Compliance Officer) (17853 Points)
Replied 26 October 2012

Transfer to Investor Education and Protection Fund

Under Section 205C (2) The following amounts that remained unpaid and unclaimed for a period of seven years from the date they became due for payment is credited to the fund:
(i)	amounts in the unpaid dividend accounts of the companies;
(ii)	the application moneys received by companies for allotment of any securities and due for refund;
(iii)	matured deposits with companies;
(iv)	matured debentures with companies;
(v)	the interest accrued on the amounts referred to in clauses (i) to (iv);
(vi)	grants and donations given to the fund by the Central Government, State Governments, companies or any other institutions for the purposes of the fund; and
(vii)	the interest or other income received out of the investments made from the fund.
	Any amount required to be credited by the companies to the Fund, as provided in the Act shall be remitted within a period of thirty days of such amounts becoming due to be credited to the Fund.

Procedure for transfer to IEPF

The amount shall be tendered by the companies on behalf of the Central Government in approved branches of authorized banks along with challan (in triplicate) and the Bank will return two copies duly stamped to the Company as token of having received the amount.
Challan can be obtained by Pay Miscellaneous Fee option under the MCA portal with the related details.

Every Company shall, when effecting a credit to the account of the Fund, will separately furnish to the concerned Registrar of Companies a statement in Form 1 duly certified by a Chartered Accountant or a Company Secretary or a Cost Accountant practicing in India or by the statutory auditors of the company wherein the details of the challans is to be filled. However, it is mandatory that each Company keep a record relating to folio number, Certificate Number etc. in respect of persons to whom the amount of unpaid or unclaimed dividend, application money, matured deposit or debentures, interest accrued or was payable, for a period of three years and the Committee or Sub-Committee shall have powers to inspect such records of that period.