MCA has notified the IEPF Authority Third Amendment Rules, 2021 and DCA has notified the Consumer Protection Rules, 2021

News from the desk of the Ministry of Corporate Affairs

Ministry of Corporate Affairs (“MCA”) has notified the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer, and Refund), Third Amendment, Rules, 2021 (“Amended Rules”) on the 28^th day of December 2021 for the purpose of amending the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 (“Rules”).

The key changes in the Rules are as under:-

• At the very outset it is required to clarify that the amendments are made under rule 6 which primarily lays down the manner of transfer of shares under sub-section (6) of section 124 of the Companies Act, 2013 (“Act”) (which directs the transfer of shares by the company to the Fund in respect of which dividend has not been paid or claimed for 7 consecutive years or more) to the Fund (administered by the Authority).
• Under sub-rule 9 it has been specified that the shares held in the DEMAT account shall not be transferred or dealt with in any manner whatsoever except for the purposes of transferring the shares back to the claimant as and when he approaches the Investor Education and Protection Fund Authority constituted under sub-section (5) of section 125 of the Act, (“Authority”) or in accordance with sub-rules (10), (11) and (11A), earlier sub-rule (11A) was not covered in such exception.
• A new sub-rule (11A) has been inserted in the Rules after sub-rule 11 for the purpose of clarifying:

1. the procedure of purchase of shares under section 236 of the Act and,
2. the role of the Authority including but not limited to verifying the conditions provided under the relevant section of the Act.

• A new sub-rule (13A) has been inserted in the Rules after sub-rule 13 for the purpose of providing clarification that in case any amount is required to be credited by the Companies to the Fund it shall be remitted into the specified account of the Authority.

The Amended Rules shall be effective from the 28^th day of December 2021.

The complete text of the Amended Rules may be viewed at the below link:

https://bit.ly/3t5mV1Z

News from the desk of Ministry of Consumer Affairs, Food and Public Distribution

Department of Consumer Affairs, Ministry of Consumer Affairs, Food and Public Distribution (“Department”) has notified the Consumer Protection (Jurisdiction of the District Commission, the State Commission, and the National Commission) Rules, 2021 (“Rules”) on 30^th December 2021 under the provisions of the Consumer Protection Act, 2019 (“Act”) for the purpose of specifying monetary jurisdiction of various commissions under the Act.

• The District Commission shall have the jurisdiction to entertain complaints where the value of the goods or services paid as consideration does not exceed fifty lakh rupees.
• The State Commission shall have the jurisdiction to entertain complaints where the value of the goods or services paid as consideration exceed fifty lakh but does not exceed two crore rupees.
• The National Commission shall have the jurisdiction to entertain complaints where the value of the goods or services paid as consideration exceeds two crore rupees.

The Rules shall be effective from the 30^th day of December 2021.

The complete text of the Rules may be viewed at the below link:

https://bit.ly/3t4QK2Q

Last updated: 08/01/2022

Article contributed by:

Syed Arsalan Ahmed

Associate - Legal

MBG Corporate Services