Investor Education and Protection Fund (IEPF)

IEPF stands for Investor Education and Protection Fund. It was established under the Ministry of Corporate Affairs by the Government of India on 7th September 2016, in accordance with Section 125 of the Companies Act, 2013.

The IEPF Authority, created under Section 125 (5) of the Companies Act, 2013, manages the IEPF Funds and facilitates the refund of shares, unclaimed dividends, matured debentures, and other deposits to investors while furthering investor awareness.

Key Provisions of IEPF

According to Section 124 (1) of the Companies Act, 2013, companies are required to transfer any unclaimed or unpaid dividends to a special bank account, known as the Unpaid Dividends Account, within seven days after the 30-day period following the declaration date.

As per Section 124 (5), any funds transferred to a company’s Unpaid Dividend Account that remain unclaimed for seven consecutive years must be sent to the Investor Education and Protection Fund.

Additionally, Section 124 (6) of the Companies Act, 2013 states that shares for which dividends have not been claimed for seven consecutive years will also be transferred to the IEPF along with the unclaimed dividends.

Types of Funds Transferred to IEPF

The following financial instruments are transferred to IEPF if not claimed in a timely manner:

• Unclaimed Shares
• Unclaimed Dividends
• Unclaimed Investments concerning debentures & interest due on them
• Unrealised matured time deposit proceeds of a company

Procedure for IEPF Claim / IEPF Refund

Any investor whose shares, dividends, matured deposits, lien on deposits, or debentures have been transferred to the IEPF authority by a company or bank can claim their investments. In cases where the original investor is deceased, their legal heir can claim the investments from IEPFA after complying with all the mandatory document requisites by the investor claiming their unpaid claims.

The refund of claims can be filed on the IEPFA website by filling Form IEPF-5 with the IEPF authority. Before proceeding with filling Form IEPF-5, necessary approvals must be obtained from the company or RTA as applicable to avoid any objections after filing the claim.

Assistance in Dividend & Shares Recovery

Many investors who bought shares during the era of physical certificates have lost track of their investments for various reasons, including:

• Forgotten shares
• Change of address or name
• Loss of share certificates
• Inactive bank or demat accounts
• Death of the investor

We assist investors and legal heirs in reclaiming their unclaimed investments in shares and dividends, offering comprehensive support that includes:

• Updating KYC, signatures, addresses, and bank and demat account details
• Obtaining duplicate shares in the event of loss
• Correcting name discrepancies for shareholders
• Transmitting shares to legal heirs or successors upon the shareholder’s death
• Dematerializing physical shares
• Claiming shares and unclaimed dividends from the IEPF Authority
• Securing succession certificates, probates of wills, or letters of administration from courts