TaxTMI 
TaxTMI 
Procedural framework for dealing with unclaimed amounts lying with entities having listed non-convertible securities and manner of claiming such amounts by investors
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....dividend/ redemption amount for non-convertible securities], there was a need to standardise the process to be followed by a listed entity for transfer of such amounts to Escrow Account and by the investors for making claims thereof. Hence, a framework has been created for defining the manner of transfer of such unclaimed amounts (referred at paragraph 1 above) by a listed entity to an Escrow Account and claim thereof by an investor. The same is enclosed as Annex - A to this Circular. 3. Further, Regulation 61A (3) of the LODR Regulations, inter-alia, provides that any amount transferred to the Escrow Account in terms of Regulation 61A (2), remaining unclaimed for a period of seven years shall be transferred to: 3.1. the 'Investor Education and Protection Fund' (IEPF) constituted in terms of section 125 of the Companies Act, 2013 - in case of listed entities which are companies [Entities which fall within the definition of 'company' under the Companies Act, 2013 and the Rules made thereunder; ]; and 3.2. the 'Investor Protection and Education Fund' (IPEF) created by the Board in terms of section 11 of the Act - in case of listed entities which are not companies. 4. In o....
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....2024. For listed entities which are not companies and have unclaimed amounts in the Escrow Account for more than 7 years, as on February 29, 2024, shall transfer the unclaimed amounts of the investors to IPEF, in compliance with the provisions of Annex - B, on or before March 31, 2024. 12. This Circular is available on the SEBI website, www.sebi.gov.in, under the category, 'Legal', under 'Circulars'. Yours faithfully, Pradeep Ramakrishnan General Manager Department of Debt and Hybrid Securities Tel No.022-2644 9246 Email id - [email protected] Annex - A Framework for transfer of unclaimed amounts by the listed entities to Escrow Accounts and claim thereof by investors (Regulation 61A (2) of the LODR Regulations) Applicability: 1. To entities having listed non-convertible securities with interest/ dividend/ redemption amount which has not been claimed within thirty days from the due date of interest/ dividend/ redemption payment. Obligations of the listed entity: 2. Transfer of unclaimed amounts to Escrow Account: In terms of Regulation 61A (2) of the LODR Regulations, the listed entity shall, within seven days from the date ....
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.... listed entity shall provide a search facility on its website for investors to verify if there is any unclaimed amount due to them and lying in the Escrow Account of the listed entity. The search criterion may be based on combinations, such as: 6.1. PAN and Date of birth; or 6.2. Name and Depository Participant Identification (DP ID)/ Client Identification (Client ID). 7. Information of unclaimed amount: Upon such search, the following information shall be visible to the investor: 7.1. Amount due to the investor on the date of payment (in INR); 7.2. Category - interest/ dividend/ redemption amount; 7.3. Date when amount became due (dd/mm/yyyy); 7.4. Amount (in INR) transferred to Escrow Account (including penal interest, if any, for delay in transfer by the listed entity); 7.5. Date when unclaimed amount was transferred to Escrow Account (dd/mm/yyyy); Further, the interest, if any, in the Escrow Account, that accrues to the investor in proportion to his/ her unclaimed amount, may also be disclosed by the listed entity. 8. Policy for filing of claim: The listed entity shall formulate a policy specifying the process to be followed by investors for claimi....
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....ntity shall preserve information pertaining to the unclaimed amounts of investors including relevant documentation. The listed entity shall furnish necessary information, as and when called for by the Board. 11. Update of information: Any change in the information uploaded on the website shall be updated by the listed entity by the seventh day of the succeeding month. Procedure applicable to investors: 12. Procedure for claim by an investor: Any investor claiming to be entitled to any unclaimed amount lying with the listed entity may apply to the listed entity for payment of such amount, in the format and manner as prescribed by the listed entity. 13. Claim by legal heir/ successor/ nominee: The aforementioned provisions in respect of the investor, shall apply, mutatis mutandis, to the legal heir/ successor/ nominee of the investor. The legal heir/ successor/ nominee shall satisfy the provisions specified under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and circulars issued thereunder, for the transmission of non-convertible securities and/ or the corresponding claim thereon, as applicable. Annex - B Framework for transf....
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.... on its website: The listed entity, shall, within a period of thirty days of transferring the unclaimed amount to the IPEF (as referred in paragraph 2 above), upload the details on its website as given below: ISIN Amount lying unclaimed in Escrow Account as at end of seven years (in INR) Category (Interest/ Dividend/ Redemption amount) No. of investors Date when amount became due for transfer to IPEF (dd/mm/yyyy) Date when unclaimed amount was transferred to IPEF (dd/mm/yyyy) Amount transferred to IPEF (in INR) ... ... Total Name and designation of the Nodal Officer: Email ID and phone no.: 6. Information of unclaimed amount: In the search facility provided for the investors by the listed entity on its website, upon searching, the following information shall be visible to the investor: 6.1. Amount lying unclaimed in the Escrow A....
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....l apply, mutatis mutandis, to the legal heir/ successor/ nominee of the investor. The legal heir/ successor/ nominee shall satisfy the provisions specified under the LODR Regulations and circulars issued thereunder, for the transmission of non-convertible securities and/ or the corresponding claim thereon, as applicable. Processing of refund claim of the listed entity from IPEF: 12. Processing of refund application: Upon receipt of a refund application from a listed entity, the Board shall: 12.1. verify the documentation and satisfy itself of the correctness of information submitted and process refund of the amount paid by the listed entity to the investor. The refund amount shall not exceed the amount transferred by the listed entity against such investor in IPEF; 12.2. require the listed entity, to furnish further information or clarifications, regarding the unclaimed amount and matters connected thereto, to consider the application for refund. The applicant shall, if so required, provide the necessary information/ clarifications; 12.3. return the application, if it is found to be incorrect, incomplete or inadequate, along with reasons thereof. The listed enti....