Have you ever thought if your grandparents or their parents had bought some shares for you, and you are unaware of them? What about the unclaimed investments, shares or the money which is notionally lost by you? Do you know the way to claim it?

Answer to this is Investor Education Protection Fund Authority (IEPF). To promote awareness amongst novice investors and protect their interests, the Ministry of Corporate Affairs (MCA) has set up IEPF. Interestingly, many investors are unheard about this fund.

Under section 125 of Companies Act 2013, The Government of India established Investor Education and Protection Fund Authority in September 2016 for the administration of IEPF.

This authority is entrusted to make refunds of shares, unclaimed dividends, matured deposits, along with promoting awareness amongst investors. Secretary, Ministry of Corporate Affairs is the ex-officio Chairman of this authority.

Investments, which are unclaimed for seven consecutive years or more, get transferred to IEPF. They include:
1. Dividends issued by a company, but unclaimed by an investor.
2. Shares with respect to the folio under which the dividends are unclaimed for a consecutive span of 7 years.
3. Matured deposits with the company other than banking companies.
4. Matured Debentures unclaimed with the company
5. Application money received by a company with respect to an application made for any security and due for a refund
6. Sale proceeds of fraction shares which arise out of issuance of bonus shares, amalgamation and mergers of companies
7. Redemption amount of preference shares unclaimed by an investor
8. Any investors money which is recovered from fraudulent companies

Why investment is transferred to IEPF?
1. Not tracking old or physical investments
2. Loss of old physical certificates and documents
3. Change in Name of the investor
4. Shares held by parents, grandparents or family.
5. Not claiming dividend warrants

Searching for unclaimed or unpaid amounts
You can search for the unclaimed or unpaid amount for yourself, your parents or even your grandparents. This facility is provided by IEPF, where an investor can seek the amount which they are liable to get back.

Investors can log on to the IEPF portal (www.iepf.gov.in) under MCA and fill up a few details such as investors’ name, father or husband’s name, folio number, DP identity number, etc. under the prescribed format.

However, the search could be a complex and cumbersome process. Try to be patient and try all kind of combinations.

How to get a refund from IEPF?
The Process of claiming a refund is pretty much similar to each other, but may vary a bit for all investments.

1. Go to IEPF Website (http://www.iepf.gov.in/IEPF/index.html) and fill in IEPF Form 5 and click the option form upload. It will redirect you to the Ministry of Corporate Affair (MCA) for form Upload.
2. You will require your login ID and Password for the purpose. If you are not already registered, first register yourself and enter required details.
3. After logging in, click on normal upload.
4. Click on Browse and attach the form. Click on Submit.
5. A Service Request Number (SRN) will be generated and you will ask for a payment option (Pay Now or Pay later). Note the SRN for future tracking of the form.
6. Click on pay now option only to generate instant acknowledgement. However, the fee is zero.
7. Click on finish as and when you see zero fee page. Your acknowledgement will be generated.

Things to remember
1. Read all instructions carefully before filling the form.
2. Keep your PAN details, valid Email ID, Aadhaar Card number, active mobile number, Demat Account details ready.
3. Keep your bank account details, IFSC Code and other details ready for submission.
4. If you are Non Resident Indian (NRI) or a foreigner, you would require a passport, Overseas Citizen of India (OCI) card and Persons of Indian Origin (PIO) card ready.
5. Proof of entitlement is mandatory. (Bonds/Debentures/Fixed Deposit receipts/Certificate of share/Interest warrant/Dividend warrant, Application No./Statement of transaction etc.)

What is the after process?
Make sure that the IEPF Form 5 is error free as any error in the same after submission cannot be changed and only one form can be filed against one company for one Aadhaar Number. Prepare all other documents as per the case and evaluate before the final submission.

The IEPF Form 5 is submitted on the portal of the Ministry of Corporate Affairs and along with the other documents forwarded to the respective company & Authority for further validation and processing.

After the final submission, the company and IEPF Authority validated the documents and informed us about any discrepancies. If no discrepancies are found, the same is processed and the shares are transferred to the respective d-mat account and the unclaimed dividends in the bank account of the investor.

Refund of share or transfer of shares?
For monetary refund, IEPF initiates e-payment as per the rules prescribed by MCA. If shares are reclaimed, the shares will be credited to the claimant’s Demat account by IEPF.

If you find all this difficult and time consuming then our professional team can help you, click here to contact us.