Corporate Updates – 17-10-2017


MCA has issued a circular w.r.t transfer of shares to Investor Education and Protection Fund Authority as per the amended rules notified recently, wherein the seven years period provided under sub-section (5) of section 124 is completed for unpaid/unclaimed dividends during September 7, 2016 to October 31, 2017. the due date for transfer of such shares by companies is October 31st, 2017. The IEPF Authority has opened demat accounts with National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL) through Punjab National Bank and SBICAP Securities Limited respectively, as Depository Participants. All companies which are required to transfer shares to IEPF Authority under the aforesaid Rules, shall transfer such shares, whether held in dematerialised form or physical to the demat accounts of IEPF Authority by way of corporate action. The Information related to the shareholders , whose shares are being transferred to IEPF’s demat accounts with PNB or SBICAP shall be provided by the companies to NSDL or CDSL respectively as per the prescribed format by the concerned depository. Any cash benefit accruing on account of shares transferred to IEPF such as dividend, proceeds realised on account of delisting of equity shares of the company, shall be transferred by companies to bank account opened by the Authority with Punjab National Bank which has been linked to demat accounts.


The Securities and Exchange Board of India in order to effectively discharge their hedging function, commodity derivative contracts must be anchored to their respective underlying physical markets,has issued circular on Criteria for Settlement Mode of Commodity Derivative Contracts. The Board has prescribed the guidelines for deciding appropriate settlement mode for commodity derivatives contracts. The first preference of settlement type shall always be by the way of physical delivery and cash settlement of commodity derivatives contract may be considered only in specified scenarios with a proper justification. Further, there is availability of reliable benchmark price of the commodity which can be used as reference for settlement price. Exchanges shall satisfy themselves that the reference spot price is robust fair indicator of prevailing prices and not susceptible to any distortion/manipulation. The provisions of the circular shall come into effect from the date of the circular.

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