Many investors are unaware that their dividends or shares, if unclaimed for seven consecutive years, are transferred to the Investor Education and Protection Fund (IEPF). This initiative, managed by the IEPF Authority under the Ministry of Corporate Affairs (MCA), safeguards the interests of investors and enables them to reclaim their rightful assets. If you or your family members have unclaimed shares or dividends, this article will guide you through the recovery process in simple terms—covering procedure, required documents, legal provisions, benefits, and frequently asked questions.

What Is IEPF and Why Are Shares Transferred?

Under Section 124 and 125 of the Companies Act, 2013, if dividends remain unclaimed for seven consecutive years, both the unpaid dividends and underlying shares are transferred to the IEPF. The IEPF Authority holds these shares and dividends in trust until the rightful claimant files for recovery.

Documents Required for IEPF Claim

To recover shares or dividends from IEPF, you need the following documents:

• Duly filled and signed Form IEPF-5

• Acknowledgement of Form IEPF-5 (generated online)

• Original indemnity bond (on non-judicial stamp paper)

• Advance receipt signed by the claimant and company

• Self-attested PAN Card and Aadhaar

• Client Master List (CML) of the claimant’s demat account

• Copy of share certificates (if in physical form)

• Death certificate and legal heir documents (if applicable)

Procedure to Recover Shares and Dividends from IEPF

• Filing of IEPF-5 Form: Visit the IEPF website and fill Form IEPF-5 online with correct details of the company, shares, and claimant.

• Print Acknowledgement and Prepare Documents: After submission, take a printout of the acknowledgment and prepare all supporting documents as per the checklist.

• Submission to Company: Send the physical copy of the IEPF-5 form and all documents to the Nodal Officer of the respective company.

• Verification by Company: The company verifies the claim and sends a verification report to the IEPF Authority within 30 days.

• Processing by IEPF Authority: If the Authority is satisfied, it approves the claim and transfers the shares and dividends to the claimant’s demat and bank account.

Benefits of Claiming Through IEPF

• Rightful ownership of long-forgotten or inherited shares.

• Recovery of dividends with interest, if applicable.

• Avoidance of legal disputes among family members in case of deceased holders.

• A simple and centralized platform for recovering investments.

Legal Provision & Section

• Section 124(6) of the Companies Act, 2013 – Transfer of shares to IEPF

• Section 125(3) – Recovery of shares or dividends

• IEPF Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 – Governs the refund process

Frequently Asked Questions (FAQs)

–  How long does it take to get shares from IEPF?

It typically takes 60–90 days from the date of submission to the company and successful verification.

– Can legal heirs claim shares if the original holder is deceased?

Yes, legal heirs can claim shares by submitting succession documents like the death certificate, will/probate, or legal heir certificate.

– Is it mandatory to have a demat account for IEPF claim?

Yes, as the shares are transferred in dematerialized form, having a demat account is compulsory.

– Can I track the status of my IEPF claim?

Yes, you can track it through the IEPF website using your SRN (Service Request Number).

– Can multiple claims be filed under one form?

No, each company’s claim must be filed separately through individual IEPF-5 forms.

Final Thought

IEPF share recovery is a vital process for reclaiming your financial rights. Many investors, especially senior citizens or legal heirs, are unaware of their entitlement. With the right documents and guidance, the process is smooth and efficient. If you’re unsure, consider consulting a professional to ensure every step is completed correctly. Let your hard-earned investments not go unclaimed—reclaim what’s yours through IEPF.