Investor Educational and protection Fund has been established under the provision of the Companies Act, 2013. IEPF (Investor Educational and Protection Fund) is the promotion of investor’s protection and awareness of the interests of investment. IEPF is set up under the Ministry of Corporate Affairs. To fund the IEPF, an unclaimed dividend, company’s deposits and debentures along with the interest on them, refunded application money is used. The EIPF shares claim is monitored by a trust and that trust has been given to the authority under subsection 4 to spend the money.
The Registrar of Companies furnishes receipts and the Ministry of Corporate Affairs (MCA) maintains a consolidated abstract of the receipts.
Process of IEPF Claim or Refund
- Investors can claim the shares under subsection 6 of section 124 or under the clause of subsection 3 of section 125. One consolidated claim can be filed for a company in one financial year with one Aadhaar Number. The details of multiple Folios of a company must be included in the consolidated claim.
- If the claimant is the legal heir of the registered shareholder then he or she has to ensure that and the transmission procedure is completed by the company. The entitlement letter should be issued to the nominee and after that only the IEPF shares the claim with the authority. Let's check out the easy and Effective Ways For Making A Quick IEPF Recovery:
Step 1: Claim to the Authority A person should apply to MCA by IEPF Form, the following details should be present on the form: - Particulars of the claimant -Details of the company with the CIN no. - Particulars of the shares to be claimed - Passport, OCI, or PIO card if the applicant is NRI and Aadhaar card if the person is an Indian citizen. - Particulars regarding the amount of the dividend which is to be claimed. - Particulars regarding the securities and deposits - Details of the bank account Step 2: Claimant to the Company The documents which have to be attached for the IEPF shares claim are: - Printout of the properly filled form - Copy of an acknowledgment bearing the SRN No. - Original indemnity bond and Advance Stamped Receipt with the signature of applicant in it. - Original Certificates - Copy of Aadhaar card for Indian Citizen and copy of PIO and OCI card or passport for NRI - Cancelled cheque of the bank account - Copy of Demat account Step 3: Company to Authority After filling up the form, the applicant should send it to the Nodal officer of the Registrar of the Company along with the attachments. The Concerned company must create a verification report within 15 days of the receipt of the claimed form, and send it to the authority. The report must be sent in the prescribed format given by the authority and documents which were submitted by the claimant. Step 4: Authority to the Applicant The Authority and the Drawing and Disbursing officer of the authority shall submit a bill to the Account officer in reply to the amount claimed after the verification has been done. The authority shall issue a sanction order for a refund, if the applicant has claimed the shares, along with the approval of the competent authority. The IEPF shares claim will be credited in the Demat account of the claimant. The application for refund is verified by the company and sent to the authority. The Authority shall predeposit it within 60 days from the date of verification, from the company. The Bottom Line The fund was set up with a mission of educating investors about the business operations of the market. Educating them about the legal rights and responsibilities related to the benefits of the company and promoting research.
There are some mistakes that should be avoided while filling up the form. Check the name of the applicant, date of birth, details of passport, OCI or PIO card, Aadhaar card properly. Check out the attachments and bank account details before submitting the form. The numbers of shares, dividends should also be checked properly before submitting IEPF shares claim.
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