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

If the transferee lodged the instrument of transfer 10 days after the date on which the income on these securities became due, the answer would differ significantly. As per Section 27A(1) of the Securities Contracts (Regulation) Act, 1956, the transferee is entitled to claim the income if they lodge 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 this revised scenario: The transferee lodged the instrument of transfer within 10 days, which is within the statutory period of fifteen days. Therefore, the transferee would be entitled to receive the income on these securities. Consequently, Mr. Mukharjee (the transferor) would not be entitled to receive and retain the income , as the transferee has fulfilled the condition for claiming it. It is important to note that Section 27A(1) does not affect the transferee's right to enforce their rights, if any, against the transferor or any other person if the CIS refuses to register the transfer of the security in the name of the transferee.