The Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Amendment Rules, 2024, notified by the Central Government, introduce key updates and modifications to the existing rules. These changes are made under the authority granted by sections 124 and 125, read with section 469 of the Companies Act, 2013. Here’s a comprehensive breakdown of the amendments:

1. Title and Commencement

• Title: These rules shall be called the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Amendment Rules, 2024.

• Commencement: The amendment rules shall come into force on the date of their publication in the Official Gazette, making them effective from that date.

2. Changes in Forms and References

The amendments primarily involve the substitution of form designations and references within the existing rules. Specifically:

• IEPF-3 to IEPF-4: Wherever the letters and figures “IEPF-3” occur in the existing rules, they are replaced with “IEPF-4.”

• IEPF-7 to IEPF-1: Wherever the letters and figures “IEPF-7” occur, they are replaced with “IEPF-1.”

3. Amendments to Rule 6: Transfer of Amounts to the IEPF

Several changes are made to Rule 6, which deals with the transfer of amounts to the Investor Education and Protection Fund (IEPF):

• Sub-rule (13):

• Old Requirement: Previously, the transfer of amounts was required to be made “into the specified account of the IEPF Authority maintained in the Punjab National Bank” within thirty days from the date of remittance or enforcement of the rules.

• New Requirement: The amendment now mandates that the transfer should be made “online to the Authority within a period of thirty days from the date such amount becomes due.” This shift emphasizes a more streamlined and digital process, removing the reference to Punjab National Bank.

• Sub-rule (13A):

• Old Requirement: Similar to sub-rule (13), the earlier rule required transfers to be made into the specified account in Punjab National Bank within thirty days from remittance or the commencement of the 2021 amendment rules.

• New Requirement: Now, the transfer must be made “online to the Authority within a period of thirty days from the date such amount becomes due,” aligning with the updated process for digital transactions and eliminating specific time constraints related to remittance or commencement dates.

4. Amendments to Rule 6A: Transfer of Dividends and Shares

Rule 6A pertains to the transfer of dividends and shares to the IEPF:

• Sub-rule (12):

• Old Requirement: Transfers were required to be made “into the specified account of the IEPF Authority maintained in the Punjab National Bank.”

• New Requirement: The amendment changes this to “online to the Authority,” further promoting digital transactions.

• Additional Change: The wording “from the date of remittance” has been replaced with “of such amount becoming due to be credited to the Fund,” indicating a focus on the due date of amounts rather than the date of remittance.

5. Substitution of Forms

The amendment rules introduce new forms, replacing the existing ones under the rules:

• Forms IEPF-1, IEPF-1A, and IEPF-2 are substituted with updated forms, reflecting the changes and ensuring consistency with the new regulations.