Securities, dividends, and debentures that remain unclaimed for more than seven years are transferred by companies to the IEPFA.
Under the existing system, the authority then oversees claim settlements and verifications, with the relevant companies playing a key part in the stipulated processes. The proposed move aims to do away with further verification by the IEPFA in cases of low-value claims to ensure faster settlement, as per the draft rules firmed up by the authority.
The transfer of physical shares with a market value of up to ₹5 lakh or dematerialised ones of up to ₹15 lakh and dividend claims of up to ₹10,000 will be categorised as low-value claims and eligible for the relaxed rule.
Such claims are being proposed to be settled within 30 days, relying solely on the companies’ verification reports.
The authority has sought stakeholder comments on the draft rules by February 27. The draft rules also propose to relax various procedural requirements, minimise documentation, reduce timelines, define clear responsibility for companies, and expedite settlements involving all unclaimed dividends, shares, matured deposits, and debentures.