LEGAL-OPNION

KIN~UNKNOWN

Yes, non-resident Indians (NRIs) can appoint relatives or friends in India via a valid Power of Attorney (POA) to recover or transmit equity shares, including unclaimed shares or dividends held by IEPF, companies, or RTAs.

Legal Basis

The Powers-of-Attorney Act, 1882 allows NRIs to execute a POA empowering an agent to act on their behalf, including binding third parties like companies or IEPF in share-related matters. NRIs hold shares under foreign investment rules, making such appointments standard for claims.

Execution Abroad

NRIs must notarize the POA in their country of residence, followed by apostille (for Hague Convention countries) or attestation by the Indian embassy/consulate. This ensures recognition by Indian RTAs, companies, and IEPF Authority.

Registration Rules

Under Section 17(2)(ii) of the Registration Act, 1908, POAs for shares in joint stock companies are exempt from mandatory registration. Voluntary registration in India is advisable for added validity.

Stamp Duty Needs

Executed abroad, the POA requires stamping in India within three months of receipt under Section 18 of the Indian Stamp Act, 1899. Rates vary by state: Rs. 100 in Delhi, Rs. 1000 in Karnataka; pay based on the relevant jurisdiction.

Best Practices

Prefer a Special POA limited to specific folios or claims for precision. NRIs should also execute core documents like affidavits personally with proper attestation, ensuring compliance with IEPF Rules and company requirements.

Posted On: 2025-12-30