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Corporate Laws Central Ministry of Corporate Affairs Companies Act, 2013

Guidance for handling suspected fraud case

05-Apr-2024 | NA

IEPFA has issued notification on guidance for handling suspected fraud case.

By virtue of this notification:-

(i) If any suspected case comes to notice, where more than one person/entity come forward to claim the securities, the company shall immediately do the due diligence to identify the original security holder and lodge a police complaint/FIR against the imposter.

(ii) In cases where the company needs to rescind the approved verification report filed on MCA21, it would be required to send an intimation to the effect duly signed by its Nodal Officer detailing reasons therein in the name of General Manager (Claims), IEPF Authority as soon as the information is received, through hard copy by hand and get it delivered to the office of the Authority.

(iii) The company shall mark such folios/Demat No. as disputed and freeze it for refund and shall not issue any e-verification report folios/Demat No. till the bonafide and entitled claimant is identified after due process of law.

(iv) Once the claim is approved on MCA21 based upon the verification report of the company or shares or dividend have been transferred (as the case may be), no request of rejection/cancellation of the same shall be entertained and the Company shall be solely liable for same as per IEPFA (AATR) Rules 2016.

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