Rule 5(8) of IEPF Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 are as follows:
Purpose: To ensure that unclaimed and unpaid amounts are transferred to the Investor Education and Protection Fund (IEPF) in a timely and accurate manner.
Timeline: Companies are required to prepare and submit the statement of unclaimed and unpaid amounts to the IEPF Authority on an annual basis, within 90 days from the end of the financial year.
Form: The statement of unclaimed and unpaid amounts is required to be submitted in Form IEPF-2.
Penalty: Non-compliance with the rules can result in penalties ranging from INR 50,000 to INR 25 lakh for the company and INR 10,000 to INR 1 lakh for the concerned officer in default. Additionally, the company may be barred from making certain filings and the directors may face disqualification.
Reporting Authority: The statement of unclaimed and unpaid amounts is required to be submitted to the IEPF Authority, which is responsible for managing the IEPF.
