Govt easing share claim refund process
Corporate Affairs Ministry in process of finalising several measures to reduce levels of unclaimed assets
New Delhi: The central government is working on a mechanism to simplify and expedite the process of share claim refunds for the eligible claimants. The Ministry of Corporate Affairs (MCA) is in the process of finalising various steps to reduce the levels of unclaimed assets and to expedite the refund of these assets to the rightful claimants, official sources told Bizz Buzz.
The mechanism has been discussed in the Financial Stability and Development Council (FSDC) so that investors could be proactively reached out to. The FSDC, headed by Finance Minister, is aimed at enhancing inter-regulatory coordination and promoting financial sector development. Its members include the heads of financial sector regulators.
The Investor Education & Protection Fund Authority (IEPFA), under the Ministry of Corporate Affairs, has reached out to the stakeholders for their insights to simplify, expedite, and streamline the claims settlement process. In line with its mandate to enhance investor experience, IEPFA is working to ensure a seamless and efficient mechanism for claim refunds, the sources said.
The IEPFA is entrusted with the responsibility of administration of the Investor Education Protection Fund (IEPF), making refunds of shares, unclaimed dividends, matured deposits, debentures, etc., to investors, and promoting awareness among investors. As per the law, any person whose money has been transferred to the IEPF may claim it.
If a claim is made, the company concerned shall, within 30 days from the date of receipt of the claim, send a verification report, indicating whether the claim is approved or rejected, to the IEPFA after verification, the sources said. In the case of the rejection of a claim, it has to inform the claimant about the reason.
The company shall be solely responsible for collecting original physical share certificates, original bonds, deposits, debenture certificates, or proofs of entitlement from the claimant and shall be liable for any misuse thereof. Soon after consultation with the stakeholders, the proposed mechanism will be notified.
