The Ministry of Corporate Affairs vide its Circular No. 05/23/2016-IEPF dated June 05, 2017 has issued a clarification with respect to issue of duplicate shares under Rule 6 (3) (d) of the Investors Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016. It has been clarified that since the transfer of shares to IEPF under Section 124(6) of the Companies Act, 2013 read with the rules referred 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.
By virtue of this clarification, to the relief of many companies, there is no need to issue duplicate shares in such cases. Now, the procedure followed for transmission of shares may be followed by companies while transferring shares to IEPF Authority pursuant to Section 124 (6) read with applicable rules.
For a detailed note on the Investors Education and Protection Fund refer to our archived article here. Contact us for further queries on IEPF.