SEBI Grade A 2025 phase 1 exam is on 10th of Jan, 2026. The phase 2 is on 26th of Feb 2026. The Companies Act, 2013 plays a major role in the syllabus. Today we will learn Chapter 8 of companies act, 2013.

Chapter 8 of Companies act, 2013: Section 123 to 127

Section 123 – Declaration of Dividend

Section 124 – Unpaid dividend account

Section 125 – Investor Education and Protection Fund

Section 126 – Right to dividend, right shares, bonus shares to be held in abeyance pending registration of transfer of shares

Section 127 – Punishment for failure to distribute dividend

Section 124 – Unpaid dividend account :

1. After a company declares a dividend, shareholders should receive it within 30 days.
2. If some shareholders do not claim or receive their dividend within said 30 days:

• The company must transfer that unpaid amount within the next 7 days to a special bank account opened in behalf of a scheduled bank.
• This account is called the unpaid dividend account.

3. Within 90 days of transferring money to the unpaid dividend account, the company must :

prepare a list showing shareholder names, last known addresses, amount of unpaid dividend. Further, the company must upload this information on the company’s website (if any) or on a government-approved website.

4. If the company does not transfer unpaid dividend dividend to the unpaid dividend account on time: it must pay 12 % interest per year on the delayed amount. This interest belongs to the shareholder’s, not the company.

5. Any shareholder who has unpaid dividend can apply to the company and claim their money from the unpaid dividend account.

6. If the money remains unclaimed for 7 years, then: the shares themselves are also transferred to the IEPF.

7. Even after shares are transferred to IEPF, the shareholder can apply and get their shares back.

8. If the company does not follow these rules:

• Company penalty – min: 1 lakh rupees, for continuing failure – 500 Rs each day, subject to max of 10 lakh rupees.
• Officers – min: 25 thousand rupees, for continuing failure – 100 Rs each day, subject to max of 2 lakh rupees.