Clarification on Section 205C: Unclaimed Dividends Must Transfer to IEPF After 7 Years; Urgent Compliance Needed.

The circular from the Department of Company Affairs clarifies the provisions of Section 205C of the Companies Act regarding unpaid dividends. It states that prior to the 1999 amendment, unpaid dividends had to be transferred to the government's general revenue account after three years. Post-amendment, from October 31, 1998, such funds, if unclaimed for seven years, must be transferred to the Investor Education and Protection Fund (IEPF). This includes application money for securities, matured deposits, and debentures. The circular urges immediate compliance for transfers due between November 1, 1998, and September 30, 2001, as the IEPF became operational on October 1, 2001.