Process to Claim Shares Transferred to IEPF Authority

By the provisions of the Investor Education and Protection Fund Rules, 2017, any money transferred to the company’s Unpaid Dividend Account according to Section 124(1) of the Companies Act of 2013 that has not been paid or redeemed for more than seven years following the date of the declaration of the dividend must be transferred, along with interest accumulated, to the Investor Education and Protection Fund (IEPF). The person whose name any sum or share has been transferred to the IEPF may submit an online application in Form IEPF-5 to the Authority established by MCA to reclaim such sum. The present article briefly outlines the Form IEPF-5 filing process.

What are the Functions of IEPF in India?

Per section 125 of the Companies Act of 2013, the Central Government created the Investor Education and Protection Fund (IEPF) to advance investment knowledge and safeguard investor interests.

• Individuals may request a return from the IEPF Authority if the corporation has transferred its unclaimed or underpaid monies to the IEPF.
• The corporation must submit the statement outlining the specifics of the transfer to the IEPF Authority in the authorized format, IEPF-5, and the Authority will issue a receipt as evidence of the transfer.
• Shares for which the dividend has not been paid or claimed for more than seven years straight must be transferred to the IEPF by the corporation, which must also provide a declaration outlining the transfer’s specifics.

What Are The Legislation Governing the e-form IEPF-5?

Legislation Regulating the e-Form IEPF-5 The Investor Education and Protection Fund Authority (Accounting, Audit, Transfer, and Refund) Rules, 2016 and subsection (3) of section 125 of the Companies Act, 2013, both mandate the filing of the e-Form IEPF-5.

What is the Significance of the e-form IEPF-5

Whoever had money transferred to the IEPF may submit an application by submitting Form IEPF-5 to the IEPF authority established by the MCA, which will then process the application.

The IEPF authorities may contact the relevant firm or bank for any required clarifications.

Advice to the Claimants

1. One Aadhaar Number may only be used by the claimant to submit one consolidated claim for a corporation throughout a fiscal year. 
2. The consolidated claim must comprise information from several folios belonging to the same business.
3. Suppose the claimant is the registered shareholder’s legal heir, successor, or nominee. In that case, they must first ensure that the firm has completed the transfer procedure and given an entitlement letter to the legal heirs before filing the IEPF Claim with the appropriate authorities.

What are the Crucial Documents Required?

Following are the documents that must be supplied with the Form IEPF-5:

• Print off the IEPF-5 claim form that has been properly filled out and submitted. If there are any joint holders, they must all sign the form.
• Copy of the acknowledgement produced following the upload of the claim Form IEPF-5 Indemnity Bond (original) must be signed by the claimant
• Suppose the claim is for Rs. 10,000 or more, a non-judicial Stamp Paper of the value specified by the Stamp Act (according to state). Please include the claimant and witness’s signatures and the date, location, and location.
• If the amount claimed does not exceed Rs. 10,000, on simple paper.
• A non-judicial Stamp Paper of the value required by the Stamp Act in the event of a share return
• Original advance stamped receipt including the claimant’s and two witnesses’ signatures.
• Suppose shares (in physical form) are claimed. In that case, the original certificate thereof, a copy of the claimant’s Aadhaar card, and if joint holders are present, a copy of the Aadhaar cards of all the joint holders must also be provided.
• Evidence of eligibility (certificate of share, Interest warrant, dividend warrant Application Number, etc.)
• original leaf of a cancelled check
• For foreign nationals and NRIs, copies of the passport, OCI, and PIO cards.
• PAN Card Copies (mandatory in case of a claim for shares)
• Client Master List of the Claimant’s Demat Accounts
• A copy of the Death certificate must be attached if any Joint Holder passes away.

What is the Process to Claim a Refund?

The steps for submitting Form IEPF-5 to request an IEPF Refund are detailed below:

Download Form IEPF-5

• To file a claim for a refund, the claimant must obtain the IEPF-5 form from the IEPF’s official website.

How to Request an IEPF Refund – Download the Form

Note: Before filling out the form, carefully read the instructions provided on the website or in the instruction packet that was sent with the form.

For reference, the e-Form IEPF 5 is copied below:

• The following information must be included by the applicant in the application form:
  • Information about the Applicant
  • Type in the company’s valid CIN. On the MCA website, the “Find CIN” feature may be used to locate CIN by entering the company name or current registration number.
  • Share information, including the folio ID
  • information on the amount claimed
  • total number of claims
  • the securities/deposits for which the amount is claimed, broken down by year
  • Aadhar Number, Passport, OCI, or PIO Card Number (for NRIs or foreigners)
  • Amount of Claims
  • Information about the bank account (connected to Aadhar, if the applicant is not an NRI or foreigner) where the reimbursement of the claim would be made
  • Account Number for Demat
• Click the checkbox provided in the declaration once the necessary information has been submitted after carefully reading all criteria.
• Save the completed form to your computer after filling it out, then submit it.
• Upload Form IEPF-5

Following pre-screening, the user must upload the form by following the instructions below:

• Visit the IEPF website and select the upload option.

• How to Request an IEPF Refund – HomePage

• You will be sent to MCA21 to upload a form. If you already have an ID and password, log in using them. If not, register by clicking the register button and providing the necessary information.

How to Request an IEPF Refund – MCA Login

• After logging in, choose a regular upload. Select Browse and then add the form. The applicant will be prompted to select a payment method after clicking Submit SRN will be produced (Pay Now or Pay later).
• Even though there will be no fee, choosing the Pay Now option will just produce an acknowledgement.
• Zero-fee pages will appear when you click Pay Now, and you must click Finish to complete the transaction. There will be a produced acknowledgement.
• An acknowledgement with the SRN will be generated following a successful upload. Please keep the SRN handy for form tracking in the future.
• Take a printout of the properly completed IEPF-5 and the acknowledgement that was sent when the form was uploaded.

What is the Procedure to be Followed After Filling the Form

Deliver the indemnification bond in an original, a copy of the acknowledgment, and a self-attested copy of the electronic form to the company’s Nodal Officer (IEPF) at its registered office with the note “Claim for a reimbursement from IEPF Authority” on the outside of the envelope.

A reimbursement would be issued by the IEPF Authority in favor of claimants’ Aadhaar linked bank accounts through electronic transfer when the concerned firm has verified that the claim form has been completed in all respects.