The Ministry of Corporate Affairs (MCA), via Notification No. G.S.R. 414(E) has notified the Investor Education and Protection Fund (IEPF) Authority (Accounting, Audit, Transfer and Refund) Amendment Rules, 2024.
Highlights of the notification
The Central Government hereby makes the following amendments to the IEPF Authority (Accounting, Audit, Transfer and Refund) Rules, 2016. These rules may be called the IEPF Authority (Accounting, Audit, Transfer and Refund) Amendment Rules, 2024:
- The letters and figures "IEPF-3" have been replaced with "IEPF-4" wherever they occur. Similarly, "IEPF-7" has been substituted with "IEPF-1".
- The most notable changes have been made to Rule 6 in sub-rule
(13) and (13A), which concerns the handling of funds and
remittances:
In Sub-rule 13 and Sub-rule 13 (A):- There was the requirement to deposit funds into the specified account of the IEPF Authority maintained in the Punjab National Bank, which has been replaced with "online to the Authority within a period of thirty days from the date such amount becomes due."
- the words "within thirty days from the date of remittance or within thirty days from the date of enforcement of these Rules, as the case may be" have been omitted.
- In Rule 6A Sub-rule (12): The directive to deposit into the specified Punjab National Bank account has been replaced with "online transfer to the Authority."
- The forms IEPF-1, IEPF-1A, and IEPF-2 shall be substituted with the new forms provided.
| Our Comments The Form "IEPF-3" has been substituted with "IEPF-4" and "IEPF-7" has been substituted with "IEPF-1". The requirement to deposit funds into an account maintained in the Punjab National Bank has been replaced. The updated wording clarifies that the amount due to be credited to the Fund must now be transferred online with the Authority as soon as it becomes due. This revision emphasizes both the change in the deposit requirement and the importance of timely online fund transfers. This notification introduces significant updates designed to improve the procedures related to accounting, auditing, fund transfers, and refunds under the IEPF Authority. The official notification can be accessed here. |
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.