Government of India has introduced measures to streamline the process for claiming duplicate share/security certificates valued up to ₹5 lakh. The requirement to file an FIR for such claims has been removed. Instead, the Investor Education and Protection Fund Authority (IEPFA) processes claims based on e-verification reports submitted by companies. To ensure timely recognition of legal heir certificates, a uniform set of documents has been prescribed under Schedule II of the IEPFA Rules, 2016, as amended. These rules obligate companies to verify the authenticity and entitlement of applicants without imposing additional conditions. Moreover, for duplicate physical security certificates, the IEPFA mandates verification based on e-reports, eliminating the need for security deposits or sureties. These measures aim to simplify and expedite the claim process while ensuring compliance with due diligence requirements.
GOVERNMENT OF INDIA
MINISTRY OF CORPORATE AFFAIRS
LOK SABHA
UNSTARRED QUESTION NO. 1051
ANSWERED ON MONDAY THE 10TH FEBRUARY, 2025
AUTHENTICITY OF AN APPLICANT CLAIMING SHARE/SECURITY CERTIFICATES
QUESTION
1051. Smt. Kriti Devi Debbarman:
Shri Chavda Vinod Lakhamshi:
Shri Anurag Sharma:
Will the Minister of CORPORATE AFFAIRS
be pleased to state:
(a) whether the condition of FIR has been removed for Share Certificates upto the value of Rs. 5 lakh;
(b) if so, the alternative measures taken to certify such claims;
(c) the steps being taken by the companies to recognise and accept legal heirs certificates without any delay or imposing additional conditions; and
(d) the measures being implemented to certify authenticity of applicants applying for duplicate physical security certificates subsequent to removal of the condition of security deposits/surety requirements?
ANSWER
MINISTER OF STATE OF THE MINISTRY OF CORPORATE AFFAIRS AND MINISTRY OF ROAD TRANSPORT AND HIGHWAYS
(HARSH MALHOTRA)
(a) & (b): Yes, Sir. The Investor Education and Protection Fund Authority (IEPFA) processes such claims based upon the e-verification report filed by the companies.
(c): A uniform set of documents has been mandated under Schedule II of Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016, as amended from time to time, for companies to recognize and accept legal heirs certificates without any delay or imposing additional conditions.
(d): The IEPFA processes the claims based upon the e-verification report filed by the companies. As per Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016, as amended from time to time, the companies are liable under all circumstances to verify the genuineness and entitlement of the claimant.
