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Common Errors Encountered in Completing IEPF Form 5

22, Jan 2025
Common Errors Encountered in Completing IEPF Form 5

Necessary Paperwork for IEPF Unclaimed Dividends

Precise attention to detail is critical in financial matters, particularly when it comes to completing the IEPF Form 5. This document plays a vital role in transferring IEPF unclaimed dividends and shares to their rightful owners. However, numerous individuals and businesses encounter avoidable errors during the form-filling process, resulting in delays, rejections, and unnecessary hassle. In this detailed guide, we'll discuss how to claim IEPF shares and common mistakes associated with completing the IEPF Form 5 and provide strategies to sidestep them, ensuring a seamless and successful filing experience.

When do your unclaimed shares get transferred to IEPF?

It is suggested that shareholders should check for their IEPF unclaimed dividends from the companies on a regular basis by keeping track of their funds and holding on to the necessary documents to file for dividend withdrawal. However, when a fund owed to a third party remains unclaimed for seven consecutive years, the fund gets transferred to IEPF.

Only specific investments in the security market go on to become a part of IEPF as per the sections of the law. They come from –

  • a) Amounts in the unpaid dividend accounts of the companies
  • b) Matured deposits with companies
  • c) Matured debentures with companies
  • d) The application money received by companies for allotment of any securities and due for refund
  • e) The interest accumulated on unpaid dividends and matured debentures.

The Procedure to Claim a Refund:

1. Begin by accessing the IEPF-5 webform for initiating the refund claim. Prior to filling out the form, carefully review the instructions provided on the website or in the instruction kit accompanying the web form.

2. Once the form is duly completed, proceed to submit it. Upon successful submission, an acknowledgment containing the Service Request Number (SRN) will be generated. Make sure to note down the SRN for future reference.

3. Print out both the filled IEPF-5 form and the generated acknowledgment for your records.

4. Prepare an original indemnity bond, a copy of the acknowledgment, and the filled IEPF-5 form, along with other required documents as outlined in Form IEPF-5. Place these documents in an envelope labeled "Claim for refund from IEPF Authority" and submit it to the Nodal Officer (IEPF) of the company at its registered office.

5. The concerned company will verify the completeness of the claim forms. Based on their verification report, the IEPF Authority will release the refund in favor of the claimants' account through electronic transfer.

About Form IEPF-5 Application Procedure in IEPF, shares search:

1. Start by visiting the IEPF website and accessing the 'Web Form IEPF-5' option available on the MCA portal.

2. Once you've filled out the form online through the MCA portal, ensure to save it on your device for future reference.

3. Proceed to upload the completed form by navigating to the IEPF website and selecting the 'Upload eForms' option located under the 'Forms' tab.

4. Upon successful upload, an acknowledgment containing the Service Request Number (SRN) will be generated.

5. Print out both the filled Form IEPF-5 and the generated acknowledgment for your records.

6. Prepare and submit the necessary documents to the Nodal Officer (IEPF) of the respective company. Ensure to mark the envelope clearly as 'Claim for a refund from IEPF Authority'.

7. The company in question will then verify the details provided in Form IEPF-5 and submit a report to the IEPF.

8. The IEPF Authority will review the completeness of the submitted documents and oversee the transfer of credits from the company to the IEPF Authority.

9. Finally, the IEPF Authority will initiate the refund process, directing the funds to the claimants' Aadhaar-linked bank accounts via electronic transfer.

Frequent Errors in Completing IEPF Form 5:

1. Discrepancies in Applicant's Name and PAN Database

2. Mismatch in Date of Birth and PAN Database

3. Unverified PAN Number

4. Incorrect Aadhar Card Details

5. Errors in Passport or OCI/PIO Card Details

6. Misinterpretation of Rule 7 Applicability

7. Misapplication of Rule 7 for Deletion Cases

8. Incorrect Mention of Deceased Shareholder and Beneficiary Details

9. Inaccurate Folio Number

10. Incorrect Number of Shares

11. Errors in Dividend Details Transferred to IEPF

12. Incorrect Financial Year

13. Inaccurate Bank or Demat Account Details

14. Wrong Attachments or Missing Compulsory Attachments

Documents Required to be Submitted to the Nodal Officer of the Company after Filing Form IEPF-5:

1. Ensure to provide a printed copy of the fully filled IEPF Form 5, bearing the signatures of the applicant and joint holders (if applicable) on all pages.

2. Include a self-attested acknowledgment of the Service Request Number (SRN) received upon filing.

3. Attach an indemnity bond on the appropriate stamp paper, duly self-attested by the claimant and witnessed, along with a date.

4. Include an advance stamped receipt, cross-signed and self-attested by the claimant, with witness signatures and date.

5. Provide a letter from the Registrar and Share Transfer Agent, verified by the Nodal Officer, serving as Proof of Entitlement.

6. Submit original share certificates or copies of transaction statements for digital holdings as proof of ownership. In case of lost original certificates, attach documents submitted to RTA for the issue of duplicate share certificates.

7. For foreign citizens, include copies of passport and OCI/PIO card.

8. Ensure all documents are securely attached to the IEPF Form.

9. Additionally, include any supporting documents previously submitted to the company for name, address, or signature changes, or for issuance of duplicate share certificates.

The process of claiming refunds and managing unclaimed investments through the IEPF can be intricate, demanding precise attention to detail at every step. However, with the assistance of Share Samadhan, India's Largest Unclaimed Investments Retrieval Advisory, this journey can be made significantly smoother. Share Samadhan offers expert guidance and support throughout the entire process, from filling out forms accurately to ensuring the submission of necessary documents. With their assistance, individuals and businesses can avoid common mistakes, streamline their refund claims, and reclaim their rightful investments with confidence and ease. Trust Share Samadhan to understand the complexities of IEPF claim procedures, making the path to financial recovery hassle-free.

FAQs:

Q1: Is registration necessary on the IEPF website before filling out the e-form IEPF-5?

A1: Yes, registration is required on the IEPF website under the 'Forms' link.

Q2: Is PAN mandatory for filing e-form IEPF-5?

A2: Yes, PAN is mandatory. The new e-form IEPF-5 is PAN verified, and the system will not allow submission in case of any variation. OTP-based verification is required, necessitating an active mobile number and a valid email ID.

Q3: Do I need professional assistance to fill e-form IEPF-5?

A3: While the e-form filling process is straightforward, professionals like Share Samadhan can further simplify it. The prescribed web form is precise and user-friendly, with a guidance kit attached for assistance. Additionally, the IEPF helpline is available for further support if needed.

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