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Key Points to Keep in Mind on Unclaimed Dividend Recovery

28, May 2024
Key Points to Keep in Mind on Unclaimed Dividend Recovery

The Investor Education and Protection Fund (IEPF) stands as a bulwark safeguarding the interests of investors within India. This government program helps return forgotten money like unclaimed dividends and matured deposits to the people who own it through the IEPF refund process. For investors holding unclaimed sums with a company, reclaiming refunds from the IEPF involves navigating a structured step-by-step procedure. In this blog, we'll delve into the intricacies of the IEPF refund process, underscore the significance of claiming unclaimed dividends, and elucidate the sequential steps essential for initiating an IEPF claim.

The inception of the Investor Education and Protection Fund (IEPF) traces back to the Ministry of Corporate Affairs (MCA) initiative. Under Section 205C of the Companies Act of 1956, the foundation of the IEPF Fund was laid, setting the stage for its establishment. To administer and regulate the IEPF Fund, the IEPF Authority was instituted under Section 125(5) of the Companies Act, 2013. This governing body was tasked with the oversight and management of the fund, ensuring its efficacy in safeguarding investor interests.

Elements Closely Associated with IEPF Claim

  • Unclaimed dividends and matured deposits find a secure haven within the confines of the IEPF, courtesy of regulations set forth by the Ministry of Corporate Affairs (MCA). These monetary assets, relinquished by companies and other entities, are dutifully transferred to the fund in accordance with stipulated guidelines.
  • Unclaimed dividends and proceeds from share sales eventually end up in the IEPF if left unclaimed for a specific period of more than 7 consecutive years.
  • The IEPF plays a crucial role in protecting investors' interests. It ensures that any unclaimed money goes back to investors instead of staying with companies, promoting fairness in finance.
  • The IEPF Authority, part of the Ministry of Corporate Affairs, oversees the rules for handling unclaimed funds. They manage these funds and make sure that regulations for transferring them are followed, protecting the interests of investors.

Why Do the Shares & Dividends Move to IEPF?

Shares and dividends find their way to the Investor Education and Protection Fund (IEPF) under specific circumstances mandated by the Companies Act of 2013. According to Section 124(5) of the Act, any dividend left unclaimed for 7 consecutive years must be transferred to the IEPF. Similarly, Section 124(6) stipulates that shares for which dividends have not been claimed for 7 or more consecutive years also get transferred to the IEPF.

About IEPF Form-5

Regarding the reclaiming process, investors utilize Form IEPF-5. This form facilitates the refund process for shares and dividends that have been moved to the IEPF. It serves as the official mechanism for the investors’  unclaimed dividends recovery, especially when dividends remain unclaimed over a defined period or when shares are transferred to the IEPF due to a lack of communication from the shareholders.

Facts & Data on IEPF Unclaimed Shares & Investments:

According to a report from Times of India, shares worth between Rs 30,000 crore and Rs 40,000 crore are currently unclaimed and are held by the government. These shares belong to original owners or their heirs who, for various reasons, have not claimed them. In June 2022, the government's Investor Education Fund and Protection Fund (IEPF) held shares valued at just over Rs 13,700 crore from the top 10 most esteemed companies in India. An estimate made three years ago by Jeevantika Consultancy Services showed that the total value of stocks of the BSE’s top 200 most valued companies that the fund had at that time was about Rs 30,000 crore. Approximately 1.5 million shareholders had stocks held by the IEPF. Alternative assessments valued the total shares held by the IEPF from all listed companies at around Rs 40,000 crore. Despite efforts to simplify the process of reclaiming shares entrusted with the IEPF, it is still cumbersome for a shareholder to complete it within the stipulated time. With the case now in the apex court, people working in this field believe the pace will improve and more cases will be resolved.



Recovering shares from the IEPF involves several steps:

1. Start with a consultation between our in-house sales team and the client.

2. Next, our valuation team thoroughly reviews all documents provided by the client.

3. Then, the sales team conducts a feasibility check.

4. Following that, we send a comprehensive proposal detailing fees and the Scope of Work.

5. Once agreed upon, both parties digitally sign the agreement using Aadhar-based authentication.

6. An Operations Executive is then designated to manage all necessary formalities.

7. Finally, any recovered shares are promptly credited to the client's Demat account.

If you find these steps challenging, reach out to Share Samadhan for assistance. We'll assign a dedicated Account Manager to handle the process for you, allowing you to stay at home while they take care of everything.

To file an IEPF claim, you'll need the following documents:

1. Copies of your PAN and Aadhaar, self-attested.

2. A cancelled cheque leaf.

3. A list of your Demat account details verified by both your Depository Participant (DP) and yourself.

4. Self-attestation of the SRN (Service Request Number) recognition.

5. An indemnity bond, witnessed and self-attested by you.

6. A stamped receipt with your self-attestation, witnesses' signatures, and a revenue stamp.

7. A letter from the transfer agent and registrar approved by the nodal officer as proof of entitlement.

8. For ownership proof: original share certificates or a copy of your transaction statement for Demat shares. If you lost your original certificates, include documents submitted for duplicate shares.

9. For foreigners and NRIs: Copy of passport and OCI/PIO card.

10. Any additional documents for name, address, signature change, or duplicate share issuance, as required.


Share Samadhan offers assistance in understanding the complexities of filing an IEPF claim share. With our expert guidance, individuals can sidestep the hassle of gathering and submitting multiple documents themselves. Share Samadhan assigns a dedicated Account Manager to handle all aspects of the claim process, from document preparation to submission, allowing clients to relax in the comfort of their homes while their claim is efficiently processed. Whether it's verifying documents, coordinating with authorities, or ensuring compliance with regulations, Share Samadhan streamlines the entire procedure, providing peace of mind and facilitating a smooth and hassle-free experience for their clients.


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