About Adani Transmission
Electricity transmission is handled by an Indian company under the name of Adani Transmission Ltd. Currently, it is among the major electricity transmission companies in the private sector in India. The corporation’s current network of 12,200 circuit kilometres will have grown by more than 3,200 circuit kilometres by July 2020.
Recover Adani Transmission Share
Because the original owners or their successors have not claimed the shares, shares valued between Rs 30,000 crore and Rs 40,000 crore are being held by the government.
The Supreme Court asked the government and the markets regulator Sebi to respond to a notice about making the data public last week in response to a public interest litigation (PIL).
Data gathered by TOI from the BSE revealed that, as of June 2022, shares in just 10 of India’s most valuable companies were held by the government’s Investor Education and Protection Fund, valued at just over Rs 13,700 crore (IEPF).
Government regulations provide that shares are transferred to the IEPF, which the IEPF Authority runs if shareholders fail to collect dividends paid by the firm in which they own shares for seven consecutive years (IEPFA).
Many people invest money in shares, but they either forget to claim it, or the shares expire before they can. In many situations, money goes unclaimed for a very long time. Therefore, the Investor Education and Protection Fund (IEPF) was established by the Ministry of Corporate Affairs (MCA) to ensure that unclaimed shares might be transferred to and received by the appropriate party.
According to Section 124 of the Companies Act of 2013 and the Investor Education and Protection Authority (Accounting, Audit, Transfer, and Return) Rules of 2016, the shareholders of the business may be entitled to a refund of their unclaimed shares that were transferred by the company to IEPF. Let’s talk about the India Share Recovery Procedure.
Recovery of Shares means
The materialization of securities continues to be a major issue even after the Demat system was introduced. Some of the securities described above never transitioned to digital form and remained in their original, physical paper form. These securities are highly vulnerable to theft, loss, or the demise of the security holder.
Recovery of Shares is the process of obtaining such securities through the transfer of shares, transfer of shares, purchase of bonus issues, unclaimed dividends, etc.
Registering Unclaimed Shares to Reclaim IEPF Shares in India
A shareholder may request that fractional shares, other securities, or other property be transferred to the IEPF, as well as that unclaimed dividends, debentures, shares, or debentures be redeemed for cash and any accumulated interest. The IEPF may submit an application in accordance with paragraph (3), clause (a), of Section 125 or may make a claim for shares in accordance with the procedure described in subsection (6), Section 124.
Note: If the applicant is a registered shareholder’s legal heir, successor, or assignee, he or she must make sure to the authorities that the business has finished the transfer procedure 7 and has sent an authorised letter to the legal heirs before filing an IEPF application.
Recovery of Adani Transmission Shares in 3 Months
When a dividend is not claimed or paid for more than seven years, the corporation must transfer the shares to the IEPF, together with the accumulated interest. The employer must inform the IEPF of the specifics of such a transfer. By contacting the IEPF authority, which keeps track of the specifics of each account, a shareholder can request the return of any unclaimed shares that have been transferred to IEPF by the corporation.
Who May Submit a Request for the Return of Shares to the IEPF?
By submitting an application to the IEPF office, any shareholder whose unclaimed shares have been transferred to the IEPF may request the return of those shares. However, a claimant is limited to one consolidated claim per firm for a given accounting year. Data from several foils from the same company should be included in the summary claim.
Suppose the applicant is a registered shareholder’s legal heir, assignee, or successor, the firm must first complete the share transfer process and produce a letter of authorisation before the applicant may submit the IEPF application to the authorities.
What is the Process of Recovery of Share from IEPF
Step 1: The claimant’s submission to the workplace
A candidate should complete Form IEPF-5 on the MCA site if he wants to receive remuneration or obtain back shares registered in his name. On the application, the candidate must fill out the following information:
- Applicant’s information (claimant).
- Information about the business, including the CIN number, from whom the payment is expected
- Information about the shares that need to be claimed
- Information on the dividend amount that must be claimed
- If the applicant is an Indian citizen, their Aadhaar number, or if they are an NRI or a foreign national, their passport, OCI, or PIO card number.
- Information about the Aadhaar-linked bank account where the claim reimbursement will be made
- Account Number for Demat
Step 2: Submit the company a claim
After submitting IEPF Form-5, the applicant must send a copy of the form to the company’s Nodal Officer/Registrar of the IEPF together with the following supporting documentation in an envelope labelled “Refund Application from IEPF.”
- a duplicate of the IEPF-5 form that has been filled out and signed by the applicant
- a non-judicial stamp paper bearing the petitioner’s signature and the original guarantee certificate in an amount stipulated by the Stamp Act.
- original pre-stamped receipt, including the applicant’s and witnesses’ signatures
- Authentic shares (if there are any) or a copy of the transaction statement (if securities are in Demat form)
- ID card, Aadhaar
- Evidence of authorization, such as a share certificate or the application number for an interesting order
- In the case of NRIs and foreigners, a passport, OCI (Overseas Citizen of India) card, or Person of Indian Origin (PIO) card.
- Returned check
- Copy of the Master Client List for Demat Accounts
Step 3: Applying for a business grant with the IEPF
Within 15 days of receiving the application form from the applicant, the firm must create a verification report and send it to the IEPF authorities along with the applicant’s supporting documents.
Step 4: Refund to the claimant from IEPF
Within 60 days of receiving the verification report from the pertinent business verifying the applicant’s request, the IEPF authority must decide on the applicant’s request for reimbursement.
Once the applicant is eligible for the shares with the approval of the competent authority, the IEPF Authority will issue an order to refund the penalty. After confirming the claimant’s eligibility, the IEPF Office and the Collection and Disbursement Officer will transmit the bill to the Pay and Bills Payable Officer. The claimant’s Demat account will be credited with the shares or amount of their claim.
In our opinion, MCA and SEBI are making a commendable effort by giving legitimate shareholders an opportunity to recover their investment through the Investor Education and Protection Fund. SEBI is also accountable for educating securities holders and investors. To guarantee that the share recovery procedure runs well and that legal shareholders receive their securities, it takes a significant lot of ability and experience.