IEPF – Shares Recovery & Demat process

IEPF – Shares Recovery & Demat process; The IEPF (Investor Education and Protection Fund) process in India is a mechanism established by the Ministry of Corporate Affairs (MCA) under the Companies Act, 2013. The primary objective of the IEPF is to protect the interests of investors and ensure the safekeeping of unclaimed dividends, matured deposits, and other assets that are lying dormant with companies for a specified period – 7 years.

Companies need to report the details of unclaimed amounts to the MCA on an annual basis. Investors who have unclaimed dividends or other amounts can claim them from the IEPF by following the prescribed procedure.

Claim Process:

1. Company will ask to update KYC with latest PAN+AADHAR + CML (Optional) -if physical in form ISR-1 along with ISR-2 Banker verification of signature and SH-13 for Nomination.
2.Company will issue Entitlement letter along with your dividend and availalbe shares total details.
3. Then You need to file IEPF-5 on MCA Portal along with required documents and need to send to the RTA of respective company along with other documents, Indemnity bond and affidavit original copy if required. Further, In case of loss/theft/misplace of original share certificates you also need to file Complaint with nearest police station and required to submit copy of FIR along with GDR No.
4. After submitting above documents with the RTA of company, Company will verify all the submitted documents and revert maximum in 15-25 days to the MCA by filing verification report and approve the application from their end.
5. After completing this process, IEPF takes normally 3-4 months for approval further and finish the process from their end and release shares/dividend to the Investor back in their possession.

Note: Before going through above process you have to take care of your name /dob/address as per PAN+AADHAR +bank account & if require official gazette need to clear.

In case of any query regarding any of your Equity share certificate or you are also willing to consult us for above process for your holding then you may reach us at info@thecadesk.com

Mistake to avoid

1. Get Succession certificate for IEPF claim in case shares in physical form and value above 5 lakh, however if demat shares then 5 lakh value is sufficient
2. Give Joint Duplicate Form A & B to the company instead individual for each Folio claim
3. Police FIR / News paper advertisement requirement will vary from company to company and RTA so need to ensure first before claim
4. File IEPF- 5 form separately for each Folio along with 15 Dividend and date of filing should not be same to ge it process by RTA on time.
5. Surety Affidavit is not mandatory now so if RTA ask give IEPF Circular notification and ask not to demand the same.
6. In case of Transmission case, Legal heirs has to submit few Transmission documents viz. Annexure C (IRS-5), Annexure – D – Individual Affidavit by each legal heirs for NOC, Annexure – E – indemnity bond too
7. Duplicate Indemnity bond witness and Witness for the IEPF -Indemnity bond must not same.
8. Don’t forget to file Nominee form along with fresh KYC so that fresh procedure not require to start in case of death of claimant too.

Refer brief about how to do on our channel video – https://www.youtube.com/watch?v=LRfTyDeaiwc