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TMI BlogProcedural framework for dealing with unclaimed amounts lying with entities having listed non-convertible securities and manner of claiming such amounts by investorsX X X X Extracts X X X X X X X X Extracts X X X X ..... -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 order to define the manner of handling t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 of expiry of the said period of thirty days (as referred in paragraph 1 abov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mation 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 claiming their unclaimed amounts. Such a policy shall include the following: 8.1. the format in which claim has to be submitted by the investor; 8.2. the procedure and documentation for making claim, depending on whether the claim is being submitted by the investor - self or by the legal heir/ nominee/ etc. of the investor; 8.3. the documents required to be submitted in support of the claim e. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 transfer of unclaimed amounts from the Escrow Account of the listed entity to IPEF and claim thereof by the investors (Provisos to Regulation 61A (3) and Regulation 61A (4) of the LODR Regulations and Regulations 4(1)(j) and 5(3)(ii) of the IPEF Regulations) Applicability: 1. To entities which do not fall within the definition of 'company' under the Companies Act, 2013 and the Rules made thereunder and have listed non-co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yyy) 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 Account of the listed entity as at end of seven years (in INR); 6.2. Break-up of Interest/ Dividend/ Redemption amount; 6.3. Date when amount became due for transfer to IPEF (dd/mm/yyyy); 6.4. Amount (in INR) transferred to IPEF by the listed entity; 6.5. Date when unclaimed amount was transferred to the IPEF by the listed entity (dd/mm/yyyy). 7. Application for refund by the listed entity to the IPEF: In terms of Regulation 5(3)(ii) of the IPEF Regulations, a listed entity shall, after processing an application from an investor for unclaimed amount, make an application to IPEF for refund of such amount. The application has to be submitted by the listed entity for reimbursement of the amount transferred by it t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sted 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 entity may re-submit the application for re-consideration after rectifying the deficiencies. 13. Processing of claim in special circumstances: In case the listed entity is part of a scheme of arrangement, amalgamation, merger, etc., the resultant entity shall become liable to discharge the obligations of the listed entity, in respect of unclaimed amounts. Form - A (To be furnished by the listed entity along with transfer of unclaimed amount to IPEF) I. Details of the listed entity: a. Name - b. PAN - c. Registered office address - d. Correspondence office address - e. Phone number - f. Email ID - II. Details of Nodal Officer of listed entity: a. Name - b. Designation - c. Registered office address - d. P ..... X X X X Extracts X X X X X X X X Extracts X X X X
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