Investor Education and Protection Fund Authority – One Person Company Registration in Coimbatore

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Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016

In exercise of the powers conferred by sub-sections (1), (2), (3), (4), (8), (9), (10) and (11) of section 125 and sub-section (6) of section 124 read with section 469 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the Investor Education and Protection Fund Authority rules, namely:-

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Short title, extent and commencement

These rules may be called the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016. They shall come into force with effect from the 7th September 2016.

Definitions

In these rules, unless the context otherwise requires-

  1. a) “Act” means the Companies Act 2013.
  2. b) “Authority” means the Investor Education and protection Fund Authority constituted under sub-section (5) of section 125 of the Act.
  3. c) “Chairperson” means the chairperson of the authority appointed under sub-section (6) of section 125 of the Act:
  4. d) “Company” means a company defined in sub-section (20) of section 2 of the Act and includes ‘corresponding new bank’ as defined in sub-section (d) of section 2 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970) and clause (b) of section 2 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980) and ‘subsidiary bank’ as defined in clause (k) of section 2 of State Bank of India (Subsidiary Bank) Act, 1959 (38 of 1959);
  5. e) “Corporate action” means any action taken by the company relating to transfer of shares and all the benefits accruing on such shares namely, bonus shares, split, consolidation, fraction shares etc., except right issue to the Authority:
  6. f) Existing IEPF” means the Investor Education and Protection Fund (IEPF) constituted under section 205C of the Companies Acts 1956 (1 of 1956):
  7. g) Fund” means the Investor Education and Protection Fund (IEPF) constituted under section 125 of the Act;
  8. h) “Investor” means any one person, who has committed money in shares, or debentures, bond or deposits under a scheme or plan of a company registered under the Act.
  9. i) “Member” means member of the Authority appointed under sub-section (6) of section 125 of the Act; and
  10. j) “Section” means the section of the Act.

Words and expressions used in these rules and not defined herein but defined in the Act or in the Companies (Specification of Definitions Details) Rules, 2014, shall have the Same meanings respectively assigned to them in the Act or in the said rules.

Fund

The Authority of the company shall administer the Fund. There shall be credited to the Fund, the following amounts namely:-

  1. a) All amounts payable as mentioned in clause (a) to (n) of sub-section (2) of section 125 of the Act;
  2. b) All shares in accordance with sub-section (6) of section 124 of the Act;
  3. c) All the resultant benefits arising out of shares held by the Authority under clause (b);
  4. d) All grants, fees and charges received by the Authority under these rules;
  5. e) All sums received by the Authority from such other sources as may be decided upon by the Central Government;
  6. f) All income earned by the Authority in any year;
  7. g) All amounts payable as mentioned in sub-section (3) of section 10B of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, section 10B of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 and section 40A of the State Bank of India (Subsidiary Bank) Act, 1959; and
  8. h) All Other sums of money collected by the Authority as envisaged in the Act.

In case of term deposits and debentures of one person company registration in Coimbatore, due unpaid or unclaimed interest shall be transferred to the Fund along with the transfer of the matured amount of such term deposits and debentures.

All the money, which accrue under sub section (2) [except clause (g)] of section 125 of the Act shall be deposited in the Consolidated Fund of India under the Major Head ‘0075- Miscellaneous General Services – 104- Unclaimed and Unpaid dividends, deposits and debentures etc.’. Such sums along with amount deposited under section 205C of the Companies Act, 1956 shall be transferred to the Fund in the non-interest bearing Public Account after taking due approval of Parliament through Appropriation Act. This non-interest bearing public Account shall be termed as IEPF Fund and shall be utilized for the purposes provided under sub-section (3) of section 125 of the Act. All amounts remitted by the one person company shall initially be accounted for under the following heads of Accounts:-

  • Major Head 0075- Miscellaneous General Services
  • Minor Head 104- Unpaid dividend Of Companies.

Grants and donations given to the Fund by the State Governments, Companies or any other institutions for the purpose of the Fund as also the interest or other income received out of the Investments made from the Fund shall be credited to a separate sub-head under “800-Other Receipts” below the MH 0075- Misc. General Services.

Amount booked under the above receipt head shall be transferred to the Fund account under Major Head ‘8235 -General and other Reserve Fund-116-IE & PF’ by the PAO, Ministry of Corporate Affairs after making suitable budget provision under Major Head 3451- Secretariat Economic Services 797 – Transfer to Reserve Fund Deposit Account- Transfer to Investor’s Education and Protection Fund’, In case the amounts of receipts in a year is more than the budget provision made under Major Head 3451 transfer to the Fund, the difference shall be transferred to the Fund in subsequent year, after obtaining approval of the Budget Division of Department of Economic Affairs and after making adequate budget provision in the relevant year.

Budget provision in connection with the activities to be financed from the Fund shall be made under Major Head 3451-Secretariat Economic Services 090 Secretariat – Investor’s Education and Protection Fund. Actual expenditure under the head shall be recouped from the Fund and the amount so recouped shall be accounted for under the Major Head ‘3451’ as Deduct entry below Minor Head ‘902- Deduct- amount met from Investor’s Education and Protection Fund’ with contra debit to Major Head –  ‘8235 – General and Other Reserve Funds -116- Investor’s Education and Protection Fund’.

Accounts and audit

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The Authority shall maintain proper accounts and other relevant records as given in Schedule to these rules and prepare an annual statement of accounts in such form as may be specified by the Central   Government in consultation with the Comptroller and Auditor-General of India. The accounts of the Authority shall be audited annually by the Internal Audit Party of the Office of Chief Controller of Accounts and Comptroller and Auditor-General of India at Such intervals and any expenditure incurred in connection with such audit shall be payable by the Authority to the Comptroller and Auditor-General of India.

The Comptroller and Auditor-General of India or any other person appointed by him in connection with the audit of the accounts of the Authority shall have the same rights and privileges and authority in Connection with such audit as the Comptroller and Auditor General generally has in connection with the audit of the Government accounts and, in particular, shall have the right to demand the production of books, accounts, connected vouchers and other documents and papers and to inspect any of the offices of the Authority.

The accounts of the Authority as certified by the Comptroller and Auditor-General of India or any other one person company appointed by him in this behalf together with the audit report thereon shall be forwarded annually to the Central Government and that Government shall cause the same to be laid before each House of Parliament.

Statement to be furnished to the Fund

Any amount required to be credited by the companies to the Fund as provided under clause (a) to (n) of sub-section (2) of section 125 of the Act shall be remitted into the specified branches of Punjab National Bank, which is the accredited Bank of the pay and Accounts Office, Ministry of Corporate Affairs and Other authorized banks engaged by the MCA-21 system, within a period of thirty days of such amounts becoming due to be credited to the Fund. The amount shall be tendered by the Companies along with challan (in triplicate) to the specified Bank Branches Of Punjab National Bank and other authorized banks under MCA- 21 system who will return two copies of the challan, duly stamped in token of having received the amount, to the One Person Company. The third copy of the challan will be forwarded along with the daily credit scroll by the receiving branch to its Focal Point Branch of the Bank for Onward transmission to the pay and Accounts Office, Ministry of Corporate Affairs (MCA).

Every company shall file with the concerned Authority one copy of the challan referred to in sub-rule (2) indicating the deposit of the amount to the Fund and shall fill in the full particulars of the amount tendered, including the head of account to which it has been credited.

The one person company shall, along with the copy of the challan as required under sub-rule (3), furnish a Statement in Form No. IEPF-1 containing details of such transfer to the Authority within thirty days of submission of challan. The amount may also be remitted by Electronic Fund Transfer in such manner, as may be specified by the Central Government.

(a) On receipt of the statement, the Authority shall enter the details of such receipt in a Register maintained physically or electronically by it in respect of each company every year, and reconcile the amount remitted and collected, with the concerned designated bank on monthly basis.

(b) Each designated bank shall furnish an abstract of such receipts during the month to the Authority within seven days after the close of every month.

(c) The One Person Company shall maintain record consisting of name, last known address, amount, folio number or client ID, certificate beneficiary details etc. of the persons in respect of whom unpaid or unclaimed amount has remained unpaid or unclaimed for a period of seven years and has been transferred to the Fund and the Authority shall have the powers to inspect such records.

The provisions of this rule shall be applicable mutatis mutandis in respect of the amounts to be credited to the Fund in pursuance of clauses (h) to (m) of sub-section (2) of section 125. Every company shall within a period of ninety days after the holding of Annual General Meeting or the date on which it should have been held as per the provisions of section 96 of the Act and every year thereafter till completion of the seven years period, identify the unclaimed amounts, as referred in sub-section (2) of 125 of the Act, as on the date of holding of Annual General Meeting or the date on which it should have been held as per the provisions of section 96 of the Act, separately furnish and upload on its own website and also on website of Authority or any other website as may specified by the Government, a Statement or information through Form No. IEPF 2, separately for each year, containing following information, namely –

(a) The names and last known addresses of the persons entitled to receive the sum;

(b) Nature of amount;

(c) The amount to which each person is entitled;

(d) The due date for transfer into the Investor Education and Protection Fund; and

(e) Such other information as may be considered relevant for the purposes.

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