Investor Education and Protection Fund Authority (IEPFA) Proposal
The IEPFA, under the corporate affairs ministry, has proposed new measures to expedite the settlement of low-value claims related to unclaimed shares and dividends. This initiative seeks to enhance efficiency by relying primarily on company verifications.
Background
- Securities, dividends, and debentures unclaimed for over seven years are transferred to IEPFA.
- The authority oversees claim settlements and verifications currently, with companies playing a crucial role in the process.
Proposed Changes
- Eliminate further verification by IEPFA for low-value claims to ensure faster processing.
- Classifications for low-value claims:
- Physical shares with a market value up to ₹5 lakh.
- Dematerialized shares up to ₹15 lakh.
- Dividend claims up to ₹10,000.
- Proposed settlement timeline: within 30 days based on company verification reports.
Additional Proposals
- Relaxation of procedural requirements.
- Reduction in documentation needs.
- Shortening of settlement timelines.
- Clear definition of company responsibilities.
- Expedited settlements for unclaimed dividends, shares, matured deposits, and debentures.
