03 August, 2012

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All about Investor Education and Protection Fund (uploading of information regarding unpaid and unclaimed amounts lying with companies) Rules, 2012

Investor Education and Protection Fund (Uploading of information regarding unpaid and unclaimed amounts lying with companies) Rules, 2012 have been notified Notification No. G.S.T. 352 (E), dated the 10th May, 2012. The Rules and relevant Circulars are as under:

Rules

Short title and Commencement
1. (1) These rules may be called the Investor Education and Protection Fund (Uploading of information regarding unpaid and unclaimed amounts lying with companies) Rules, 2012.

(2) They shall come into force with effect from 20th May, 2012.


Definitions
2. In these rules, unless the context otherwise requires-
(a)  'Act' means the Companies Act, 1956;
(b)  'eForm' means eform specified in the rules;
(c)  Financial year means the financial year as defined under Subsection (17) of Section 2 of the Companies Act, 1956;
(d)  Words and expressions used in these rules and not defined herein but defined in the Act shall have the meaning as assigned to them in the Act;

Filing of information regarding unpaid and unclaimed amounts
3. Every Company (including Non-banking Financial Companies and Residuary Non-banking Companies) shall, within a period of 90 days after the holding of Annual General Meeting or the date on which it should have been held as per the provisions of section 166 of the Act and every year thereafter till completion of the seven years period, identify the unclaimed amounts as referred to in sub-section (2) of section 205C of the Act, separately furnish and upload on its own website as also on the Ministry's website or any other website as may be specified by the Government a statement or information through eForm 5 INV, separately for each year, containing following information, namely:-

(a)  the names and last known addresses of the persons entitled to receive the sum;
(b)  the 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 considered relevant for the purpose;

Provided that, for the financial year ended March 31, 2011, the information shall be filed, latest by the July 31, 2012.

Verification of eForm
4. The information referred to in rule 3 shall be duly verified and certified by a chartered accountant or a company secretary or a cost accountant practicing in India or by the statutory auditors of the company.

Default in filing of information
5. If a company fails to furnish and upload information or furnishes and uploads false information on the website, the company, and every officer of the company who is in default, shall be liable and in such case the provisions of Section 629A of the Companies Act, 1956 shall be applicable.


Circular No. 17/2012, Dated 23-7-2012
The following clarifications are issued with reference to the Investor Education and Protection Fund (uploading of information regarding unpaid and unclaimed amounts lying with companies) Rules, 2012, published in the Gazette of India Part II section 3 sub-section (i) vide Notification No. G.S.T. 352 (E), dated the 10th May, 2012:

(a)  As per these rules, information is to be filed in Form 5 INV. The cut-off date for filing information in Form 5 INV refers to the date of AGM up to which the information relating to a particular year is to be updated and then filed. Example: for the financial year ended 31-3-2012, where date of AGM is 30-9-2012, the complete information regarding unpaid and unclaimed amounts has to be updated till the date of AGM i.e., up to 30-9-2012 and then this information is to be filed through eform 5 INV within 90 days of the date of AGM i.e. by 29-12-2012.

(b)  The Companies will have to file Form 5 INV for the year 2010-2011 up to 31st July, 2012 or within 90 days of the date of Annual General Meeting, whichever is later.

(c)  Any company which has filed Form No. 5 INV but could not upload correct excel template within 14 days from the date of filing Form 5 INV, can file details of investors in excel template up to 31st August, 2012,

(d)  The Companies are required to file one Form No. 5 INV each year for furnishing information on unpaid/unclaimed amounts lying with companies as on the date of Annual General Meeting.



General Circular No. 20/2012, Dated: 01.08.2012

As per the Circular No. 17/2012 dated the 23rd July, 2012, the Companies are required to file one Form 5 INV each year for furnishing complete information on unpaid/unclaimed amounts lying with companies as on the date of Annual General Meeting of that year, in pursuance of Investor Education and Protection Fund (uploading of information regarding unpaid and unclaimed amounts lying with companies) Rules 2012, published in the Gazette of India Part II section 3 sub section (i) vide Notification No. G.5.R. 352(E) dated the 10th May, 2012. However, it has come to the notice of the Ministry that some companies have filed multiple Form No. 5 INV in respect of unpaid/unclaimed amounts lying with them instead of filing one form.
To remove this anomaly and for better understanding of the issue, it is clarified:

(a) Any Company, which has filed multiple Form 5 INV while uploading the information for the year 2010-11 on or before the date of issue of this circular, should again file Form 5 INV (single) and upload the details of investors in excel template. This process should be completed by 31′ August, 2012.

(b) All Companies, which have not yet filed Form No. 5 INV are allowed to file Form No. 5 INV along with details of investors in excel template upto 31′ August, 2012.






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