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    Encashment of dividend transferred to IEPF after 7 years

    Posted By : ARUN GANDHI / Published on : 29-Jul-2022 05:52 AM / View : 104 / Comment : 1

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    As per the first proviso of rule 6(1) of the Investor Education and
    Protection Fund Authority (Accounting, Audit, Transfer, and Refund)
    Rules, 2016 where the beneficial owner has encashed any dividend
    warrants during the last seven years, his or her shares are not liable
    to be transferred to the fund.

    In this case, if any shareholder encashes any dividend warrants after the expiry of said seven years, would his shares be liable to be transferred to IEPF or not?
    Read more on : after years iepf transferred dividend encashment

    • Hi Arun! 

      Explanation to section 124(6) provides that, in case any dividend is paid or claimed for any year during the said period of seven consecutive years, the shares shall not be transferred to Investor Education and Protection Fund.

      The explanation clearly states that if the dividend is paid/claimed during the said period of seven consecutive years, the share shall not be transferred. Therefore, if any shareholder has encashed any dividend warrants after the expiry of said seven years; his shares would be liable to be transferred to IEPF.

      Thanks!

      30-07-2022 / 06:25:17 AM
      Reply
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