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IEPF Refunds: What You Need to Do to Get Your Money Back

04, May 2023
IEPF Refunds: What You Need to Do to Get Your Money Back

                       

Didn't we all hear stories like our grandparents invested in a company's shares, and now they are worth millions? Well, most of these stories had a sad ending about how those shares remain unclaimed to date. If only there were a way to claim those shares after our grand parent's sudden demise.

 

Hence, the Ministry of Corporate Affairs (MCA) set up the Investor Education and Protection Fund (IEPF). Companies transfer shares where no one has claimed dividends for over seven years to this government body.

 

Investor Education and Protection Fund (IEPF)

 

The Central Government of India introduced IEPF under the provisions of section 125 of the Companies ACT, 2013. The objective behind the whole idea was to promote awareness, educate and protect investors.

 

Things that get transferred to the IEPF

 

  • Unclaimed dividends
  • Matured debentures
  • Matured deposits
  • Unclaimed shares
  • Application money due for refund
  • Interests accrued on the aforementioned things
  • Investor money recovered from fraud

 

How to claim a refund from IEPF?

Today we will discuss how you can reclaim shares from IEPF. Please remember that we are only discussing the refund of shares because the process is more or less the same for others.

 

Step 1: Filling the IEPF 5 form

 

  • You will be redirected to the official website of the Ministry of Corporate Affairs.

 

  • After signing up or logging in, fill out the form and download it to your computer.

 

  • Visit the IEPF website, click on services, and then click on 'Upload eForms'.

 

  • Once the application is successfully uploaded, an acknowledgment will be generated with Services Request Number (SRN).

 

Step 2: Claim submission to the company

 

Once you are done filling out the IEPF 5 Form, you need to make a printout of the form and send it to the company's IEPF Nodal Officer/Registrar in an envelope marked 'Claim for refund from IEPF Authority' along with the following documents:

 

  • Print a copy of the IEPF form with the claimant's signature.

 

  • Copy of the generated acknowledgment with the SRN number.

 

 

  • Advanced stamped receipt (original) signed by the claimant and two witnesses.

 

  • Share certificates (original) and if the securities are not in physical form then a copy of the transaction statement would be required.

 

  • Copy of Aadhar Card (if there's a joint holder then their copy of Aadhar card too)

 

  • Share certificate, interest warrant, dividend warrant application number, etc., as proof of entitlement.

 

  • Canceled cheque bearing claimant's name

 

  • Foreigners and NRIs should provide self-attested copies of their passports, OCI cards, and PIO cards

 

  • Pan Card (self-attested)

 

  • Self-attested copy of client master list of claimant's Demat AC

 

  • In the case of a deceased joint holder, a copy of the death certificate is necessary.

 

Step 3- The company sends a verification report to the IEPF authority

 

The company will send a verification report along with all the documents submitted by the claimant to the IEPF Authority within 15 days of the claim submission from the claimant's side.

 

Final step- Refund from the IEPF Authority

 

The IEPF Authority will make final a decision on the refund application within 60 days of receiving the verification report from the company that verified the application.

 

If the shares are reclaimed the Authority will issue an e-payment of the refund and the shares will be credited to the claimant's Demat AC.

 

 

Disclaimer-

 

The information and materials on this blog are for informational purposes, and they do not create an attorney-client relationship. The information on this blog does not serve as legal or professional advice and should not be used as a substitute for seeking legal advice from a licensed attorney in your state.

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