in case of amounts credited to IEPF u/s 125, interest accrued on application money, deposits and debentures are credited to IEPF but interest on unpaid div , redemption on preference shares and sale proceeds of fractional shares all remaining unpaid for 7 years are not creditd to IEPF. whi is that so? pls explain

Questions › Category: CA-Final Dividend › in case of amounts credited to IEPF u/s 125, interest accrued on application money, deposits and debentures are credited to IEPF but interest on unpaid div , redemption on preference shares and sale proceeds of fractional shares all remaining unpaid for 7 years are not creditd to IEPF. whi is that so? pls explain

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CHIRAGG MEHTTA asked 6 years ago

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Ravi Staff answered 6 years ago

Interest on Unpaid Dividend is also Transferred to IEPF, this is not specified in 125 but it is given in 124
In case of redemption of preference shares and payment for fractional shares, there is no need to keep such money in separate bank account , so there is no exclusive direct attributable earnings from such amounts , hence law doesnt specify for transfer of interest on such amounts.
in case of debentures and deposits, debeneture deed, deposit terms may provide for interest which needs to be transfered