The MCA has once again extended the time for transferring the shares to the IEPF demat account in view of the modality gap present. The circular clearly states that since the operational issues are yet to be finalized with the other participants, the date for transferring shares is being extended.
After number of circulars on trying to simplify the whole process of transfer of shares, it does not seem to actually simplify the task, moreover such extensions raise high doubts in the minds of the stakeholders on how realistic the transfer of shares would actually be.
The circular also states that all the corporates are advised to complete all the formalities in relation to transfer without waiting for any fresh dates. This implies that companies which have almost completed all the formalities on their part can without any doubt finish off the residual formalities like issuing duplicate share certificates and making entries in the register. Such extension surely does not provides the scope to the shareholders whose shares are to be transferred to have an extended time to come and claim dividend from the company beyond the time provided in the notices.
Further, for many companies time has come to give notice to the shareholders whose dividend is lying unclaimed from the financial year 2009-10. At such a stage when the first tranche of transfer has not been done, corporates wonder on how the upcoming events will turn out to be in connection with such transfer.
Link to the circular- http://www.mca.gov.in/Ministry/pdf/GeneralCircular6_29052017.pdf
Author: Pammy Jaiswal
Vinod Kothari and Company