Learn the step-by-step process of claiming shares from the IEPF (Investor Education and Protection Fund) under the Companies Act, 2013. Understand the forms, documentation, verification, and timelines involved to ensure a successful claim.
Process of claiming of shares from the IEPF is regulated by the Provisions of the section 124 (5), (6) and (7) and Investor Education and Protection fund authority (Accounting, Audit, Transfer and Refund) Rules, 2016.
PROCESS OF CLAIM OF SHARES AND DIVIDEND FROM THE IEPF. By using the below mentioned process a General Person himself/ through any professional guidance can apply for refund of shares from IEPF to their names.
Step-1 FILING OF FORM IEPF-5 WITH THE IEPF-
Any person whose shares, unclaimed dividend, matured deposits, matured debentures, application money due for refund, or interest thereon, sale proceeds of fractional shares, redemption proceeds of preference shares etc., has been transferred to the Fund, may claim the shares under proviso to sub-section (6) of section 124 or apply for refund under clause (a) of sub-section (3) of section 125 or under proviso to sub-section (3) of section 125, as the case may be, to the Authority by submitting an online application in Form lEPF-5 available on the website www.iepf.gov.in along with fee specified by the Authority from time to time in consultation with the Central Government. In e-form the Claimant mention following details
- Particular of Applicant
- Particular of Company
- Details of Shares to be claimed
- Details of amount claimed
- Year wise details of securities/deposits
- Aaadhar Number or Passport/OCI/PIO Card No. (In case of NRI/ foreigners)
- Details of Bank account ( Aadhar linked, in case of applicant is not NRI/foreigner) in which refund of claim to be made.
Step-2 TRANSMISSION OF APPLICATION TO THE NODAL OFFICER OF THE COMPANY-
Upon submission. Form No. IEPF-5 shall be transmitted online to the Nodal Officer of the company for verification of claim and Claimant after making an application in Form No. IEPF-5 Submit the following documents to the Nodal officer of the Company which is mentioned hereinbelow.
- Original Physical share certificate
- Original bond
- Deposit certificate
- Debenture certificate
- Indemnity Bond
- Advance receipts
- Any other documents as enumerated in form No. IEPF-5 duly signed by him.
Step-3 SEND ONLINE VERIFICATION REPORT TO THE AUTHORITY:
The company shall, within thirty days from the date of receipt of claim, send an online verification report to the Authority after verification of details in Form No. IEPF-5 in the format specified by the Authority along with all the documents submitted by the claimant and shall attach the scanned copy of all the original documents submitted by the claimant in physical form duly certified by its Nodal Officer alongwith the e-verification report along with a scanned copy of both sides of original physical share certificate or original bond or deposit or debenture certificate/s duly cancelled and certified:
DELAY IN SUBMISSION IN REPORT:
If the online verification report is not sent by the company within thirty days of filing of claim, the company may do so by paying additional fee of fifty rupees for every day subject to maximum of two thousand and five hundred rupees: the company shall be liable to maintain the original documents submitted to it by the claimant and shall produce such documents whenever required: Provided also that for failure to submit verification report of the claim in accordance with these rules, the company and its Nodal Officer shall be punishable as per the provisions of the Act.
Step-4 VERIFICATION OF CLAIMS BY THE AUTHORITY
After verification of the entitlement of the claimant-
(a) to the amount claimed, the Authority and then Drawing and Disbursement Officer of the Authority shall present a bill to the Pay and Accounts Office for e-payment as per the guidelines.
(b) to the shares claimed, the Authority shall issue a refund sanction order with the approval of the Competent Authority and shall credit the shares to the DEMAT account of the claimant to the extent of the claimant’s entitlement.
Time Period: An application received for refund of any claim under this rule duly verified by the concerned company shall be disposed of by the Authority within 60 days from the date of receipt of the verification report from the company.
Step-5 VERIFICATION OF CLAIMS BY THE COMPANY
an application received for refund of any claim under this rule duly verified by the concerned company shall be disposed of by the authority within sixty days from the date of receipt of the verification report from the company, complete in all respects and any delay beyond sixty days shall be recorded in writing specifying the reasons for the delay and the same shall be communicated to the claimant in writing or by electronic means.
Step-6 CALLING OF INFORMATION IN CASE OF DEFECTIVE RETURN
Where the Authority, on examining any application for claim, finds it necessary to call for further information or finds such application or e-form or document to be defective or incomplete in any respect, the Authority shall give intimation of such information called for or defects or incompleteness, by e- mail on the email address of the claimant and the company, which has filed such application or e-form or document, directing him or it to furnish such information or to rectify such defects or incompleteness or to re-submit such application ore-Form or document within fifteen days from the date of receipt of such communication, failing which the Authority may reject the claim or e-form No. I EPF-5:
Step-7 IN CASE THE CLAIMANT IS LEGAL HEIR OR SUCCESOR OR ADMINISTRATOR OR NOMINEE OF REGISTERED HOLDER
In case, claimant is a legal heir or successor or administrator or nominee of the registered share holder, the claimant shall ensure to submission of self-attested scanned copy of all documents detailed in Schedule II of these rules online along with the Form No. IEPF-5:
Provided that in case of loss of securities held in physical form, he has to ensure to submission of self-attested scanned copy of additional documents detailed in Schedule III of these rules online along with the Form No. IEPF-5:
Provided further that the claimant shall submit in original all these documents duly signed by him, to the Nodal Officer of the concerned company at its registered office for verification of the claim.
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(Author – CS Piyush Goyal, Piyush Goyal & ASSOCIATES Company Secretary in Practice and can be contacted at 8279255794.)
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