Receive Daily Updates by Email (Free Subscription)

[MCA] Clarification - Transmission Of Securities By Operation Of Law

Ministry of Corporate Affairs has issued General Circular No. 07/2017 on 05th June, 2017 regarding transmission of securities by operation of law. The contents of the said circular is as follows:

Clarity has been sought by stakeholders w.r.t. issue of duplicate shares under Rule 6 (3)(d) of the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016.

It has been stated that since transfer of shares to IEPF under section 124 (6) of the Companies Act, 2013 read with rules referred to above takes place on account of operation of law hence the procedure followed during transmission of shares may be followed in such cases and duplicate shares need not be issued in such cases.

The suggestion made by the stakeholders has been examined in the Ministry and it is clarified that the procedure similar to what is followed in case of transmission of shares may be followed by companies while transferring shares to IEPF Authority pursuant to section 124 (6) read with applicable rules.

No comments:

Post a Comment

Share your valuable opinion or your query here.