Blog

With a view to improve transparency and enhance the robustness of the corporate bond market, Securities and Exchange Board of India has amended SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. One of the amendments concerning non-convertible securities is introduction of new Regulation 61A specifying following detailed process for dealing with the unclaimed NCS and accrued benefits thereof.

1. a) Shall not forfeit unclaimed interest / dividend / redemption amount
2. b) Where the interest / dividend / redemption amount has not been claimed within 30 days from the due date of interest / dividend/ redemption payment, NCS issuer would transfer the amount to escrow account opened with a scheduled bank within seven days from the date of expiry of said period of 30 days
3. c) Interest / dividend / redemption amount that is unclaimed and outstanding for a period of less than seven years as on the date of notification of sub regulation is to be transferred to escrow account within 30 days, where it shall remain for intervening  period upto seven years
4. d) Any amount transferred to the escrow account that remains unclaimed for seven years is to be transferred to the Investor Education and Protection Fund constituted under Companies Act 2013