Sebi directs entities to submit information on unclaimed securities

The Securities and Exchange Board of India (Sebi) has directed all entities that don’t fall under the definition of ‘companies’ to submit information regarding unclaimed non-convertible securities.

The move will help identify that amount that needs to be transferred to Investor Education and Protection Fund (IEPF).

Under Regulation 61A of the Listing Regulations and Section 125 of the Companies Act, amounts remaining unclaimed from non-convertible securities for a period of seven years are required to be transferred to IEPF.

However, there was ambiguity on whether this rule also applies to entities that are not constituted as ‘company’ under the Companies Act and hence, some entities were not forthcoming with this information.