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Corporate Laws Central Ministry of Finance Securities and Exchange Board of India Act, 1992

Procedural framework for dealing with unclaimed amounts lying with entities having listed non-convertible securities and manner of claiming such amounts by investors

08-Nov-2023 | SEBI/HO/DDHS/DDHS-RAC-1/P/CIR/2023/176

The Securities Exchange Board of India has issued a circular introducing Framework for transfer of unclaimed amounts by the listed entities to Escrow Accounts and claim thereof by investors.

By virtue of this notification :-

1.The listed entities having unclaimed amounts in the Escrow Account for less than 7 years, as on February 29, 2024, shall start computing interest, as per provisions of Annex - A, from March 1, 2024. For listed entities which are not companies 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.

2.The listed entity, shall, within a period of thirty days of transferring the unclaimed amount to the Escrow Account, upload details on its website.

3.The listed entity shall provide a search facility and Information of unclaimed amount to Investor.

4.In case a default is made in transferring the amount , which remains unpaid or unclaimed for a period of seven years from the due date of such transfer to the IPEF, the listed entity shall be liable to a penalty of one lakh rupees and in case of continuing failure, a further penalty of five hundred rupees for each day that the failure continues, subject to a maximum of ten lakh rupees.

For further details please refer the attachment.

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