Mukharjee holds certain securities on 31st March, 2022, issued in his favour under the "Collective Investment Scheme (CIS)", for consideration, Mukharjee transferred the said securities in favour of another person. One m

As per Section 27A(1) of the Securities Contracts (Regulation) Act, 1956, the holder of any securities (including units or other instruments issued by a collective investment scheme) whose name appears on the books of the CIS is entitled to receive and retain any income declared for any year, even if the security has been transferred for consideration. However, this right is subject to a condition: the transferee who claims the income must have lodged the security and all other necessary transfer documents with the CIS for registration in their name within fifteen days of the date on which the income became due. In the given case: Mukharjee transferred the securities. The transferee lodged the instrument of transfer one month (i.e., 30 days) after the date on which the income became due. Since the transferee lodged the instrument of transfer beyond the statutory period of fifteen days, Mukharjee, whose name would still appear on the books of the CIS at the time the income became due (as transfer was not registered within 15 days), is entitled to receive and retain the income on these securities for the financial year ended 31st March, 2022.