Khoye Hue Share Samadhan – IEPF Expert Consultants

1. What is an Investor Education Protection Fund?

Through the Companies (Amendment) Act of 1999, the Investor Education and Protection Fund (IEPF) was created in accordance with Section 205C of the Companies Act of 1956 in order to advance investor knowledge and safeguard investor interests. The Amendment Act further stated that no claims could be made against the Fund or the Company for any specific sums that went unclaimed and unpaid for a period of seven years following the dates they first became due for payment. Additionally, no payments would be given for any such claims. The following sums that remained unpaid and unclaimed after becoming due for payment for a period of seven years are credited to the Fund:

The government of India introduced, Investor Education and Protection Fund, a regulatory framework to regulate and protect the fund of investors on 7th September, 2016 under the provisions of section 125 of the companies act, 2013.

The responsibilities assigned to IEPF are to make refunds of shares, matured deposits/debentures, unpaid dividends, and to promote awareness among the investors. It also ensures reimbursement of legal expenses incurred in pursuing action suits by the depositors.

2. What Shares Enter the IEPF and How Do I Claim Them?

As per the government rule, all the dividends on shares that have not been claimed for seven or more consecutive years are required to be transferred to Investor Education and Protection Fund (IEPF) by the respective company. Previously, if the investor didn’t claim the dividend, corporations would take advantage of the investor’s ignorance and keep the money for themselves. Later, after realising this oversight, the government passed the IEPF, which requires companies to transfer profits that have not been claimed for seven years in a row.

Any person or shareholder whose unclaimed dividend has been transferred to IEPF can claim it from IEPF authority. However, it takes a very long time of around 8-12 months to get the unclaimed shares and dividend credited into the account from the IEPF authority.

For samadhan or procedure to claim shares and dividend from IEPF following procedure should be done.

1. Access the IEPF-5 form on the MCA portal from the IEPF website. Claimants are advised to follow the instructions carefully from the instruction kit given on the IEPF website.

2. After completing the form, submit it. An acknowledgement will be generated with a “Submit Request Number” (SRN). Please note this SRN for tracking purposes of the form in the future.

3. Take out the printout of the form along with the acknowledgement issued.

4. Now, submit the original copy of the indemnity bond, copy of acknowledgement, share certificate and IEPF Form 5 along with self attested adhaar card, details of bank account linked with Adhaar card in which claim is to be received and demat account number to Nodal officer (IEPF) of the company at its registered office in the envelope marked as “Claim for refund from IEPF Authority”.

5. Now, the concerned company will verify the claim form and, on the basis of the verification report, the IEPF authority will issue the refund of unclaimed shares and dividend in the client account.

6. IEPF authorities must reply to the verification report sent by the company within 60 days.

Refund from IEPF is a very long and tedious process, which might take more than 8-12 months because IEPF has only one office, which is situated in Delhi.

For help in Unclaimed Dividends, Lost Shares, IEPF Claim, for any Share Samadhan Contact us at 87000 44209