Nowadays, many people are investing their money into shares. However, when the time comes, they forget to claim their money or claim their money after the expiry date. In those situations, the money remains unclaimed for several years. To solve this issue, the Ministry of Corporate Affairs or MCA has introduced the IEPF or Investor Education and Protection Fund to make sure that those unclaimed shares can be legally transferred and even received by the eligible person. Now, you may need to know about the procedure of IEPF shares recovery. So, to help you out, here is the details of the procedure.
The shareholders of a company can receive a refund of their unclaimed shares. Here is the detailed procedure for your help:
Transfer of unclaimed shares
A company needs to transfer the shares where the dividend has remained unpaid or even paid for a time period of more than seven years to the IEPF with accrued interest. For this, the company needs to submit the detailed information of such transfer to the authority of IEPF. A shareholder can be able to reclaim her/his unclaimed shares that had been transferred to the department of IEPF by the company by submitting an application to the IEPF authority because it maintains the details of every account.
Who are eligible to apply for lost shares recovery?
Any shareholder whose shares remained unclaimed and have been transmitted to the IEPF authority can be eligible to claim IEPF shares recovery by applying to the authority of IEPF. However, that person can only apply for one consolidated claim regarding a particular company in a financial year.
This aggregated claim needs to include the crucial data of different Folios from that company.
If the applicant or claimant is the legal nominee, heir, or even successor of the registered shareholder of the company, she/he needs to ensure first that the company does not fail to complete the procedure of share transmission and even issues an entitlement letter before filling up the claim with the IEPF authority.
The procedure of Lost shares recovery from IEPF
Filing to the IEPF authority
A claimant who wants to receive a refund or recover his/her shares back from the IEPF authority, he/she needs to submit the application form IEPF-5 on the portal known as MCA portal. While submitting the form he/she needs to provide some pieces of information like:
The name and other details of the claimant.
The information of the company from which the amount is due, along with the CIN number.
Details and amount of the claimed dividend.
Details of the shares that need to be claimed.
Bank account information which is linked to Aadhar which the claimant wants the claim to be refunded.
Aadhar number of the applicant if the person is an Indian citizen. OCI/passport/PIO card number if the person is a foreigner or an NRI.
The claimant’s Demat account number.
2.Submitting the claim
To submit the claim, you need to submit some documents, such as:
Have a printout of the filled form IEPF-5 with signature.
Acknowledgement copy with the SRN number.
The original indemnity bond with the signature of the claimant.
Original share certificates.
Advanced stamped receipt in original with the signature of the witness and claimant.
Passport, or OCI.
Aadhar card and a cancelled cheque.
Copy of the client master list of the Demat account.
3.Submission of the claim
In this step, the company needs to conduct a verification within 15 days after receiving the application and submit the report within time.
4.Refund
In this step, the IEPF department will decide on the reimbursement of the claimant and complete the procedure after receiving the verification report. After that, the IEPF department will issue a refund.
Therefore, the process of IEPF shares recovery is very easy to conduct and complete nowadays. It won’t be very difficult to know about the methods of the claim of shares from IEPF if you go through the content related to the matter over the internet.
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