{"id":45227,"date":"2022-07-11T18:07:35","date_gmt":"2022-07-11T12:37:35","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=45227"},"modified":"2024-07-17T11:27:59","modified_gmt":"2024-07-17T05:57:59","slug":"procedure-for-recovery-of-shares-from-iepf","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/procedure-for-recovery-of-shares-from-iepf\/","title":{"rendered":"Detailed Procedure for Recovery of Shares from IEPF"},"content":{"rendered":"\n<p>Any shareholder whose shares, unclaimed or unpaid dividend amount has been transferred to IEPF has the right to claim such shares or dividends from IEPF by following proper procedure for <a href=\"https:\/\/corpbiz.io\/recovery-of-shares\"><strong>recovery of shares<\/strong><\/a> from IEPF.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/procedure-for-recovery-of-shares-from-iepf\/#Introduction_to_IEPF\" >Introduction to IEPF<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/procedure-for-recovery-of-shares-from-iepf\/#Dematerialisation_of_Physical_Shares\" >Dematerialisation of Physical Shares<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/procedure-for-recovery-of-shares-from-iepf\/#Documents_required_for_Recovery_of_Shares_from_IEPF\" >Documents required for Recovery of Shares from IEPF<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/procedure-for-recovery-of-shares-from-iepf\/#Detailed_Procedure_for_Recovery_of_Shares_from_IEPF\" >Detailed Procedure for Recovery of Shares from IEPF<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/procedure-for-recovery-of-shares-from-iepf\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Introduction_to_IEPF\"><\/span>Introduction to IEPF<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>IEPF is an abbreviation for Investor Education and\nProtection Fund. The Government of India constituted it under the Ministry of\nCorporate Affairs on 7th September 2016. IEPF is constituted under the ambit of\nsub-section (5), (6) and (7) of Section 125 of the Companies Act 2013, which\ndiscusses rules and regulations that are made for investors as well as\ncompanies related to IEPF.<\/p>\n\n\n\n<p>It is established to protect the interest of investors who invest in the Share Market of India and whose dividends have been unpaid. When the dividends on the shares are not claimed or encashed for seven consecutive years, then such dividends or shares of the investors are transferred to the IEPF Authority, except for the bonus or split shares of such seven years. Shareholders are suggested to timely claim their dividends and keep track of their funds.<\/p>\n\n\n\n<p>IEPF Authority is responsible for administering\nInvestor Education Protection Fund (IEPF). The Authority revive dormant shares\nand makes refund unclaimed dividends, matured deposits or debentures and\ninterest to the investors. It is also responsible for spreading awareness among\nthe investors and protecting their interests in the money market.<\/p>\n\n\n\n<p>The investments that become part of Investor\nEducation Protection Funds (IEPF) as per Section 125 of the Companies Act 2013\nand all the Rules made thereunder are as follows:<\/p>\n\n\n\n<ul>\n<li>Amounts in unpaid dividend accounts of the companies<\/li>\n\n\n\n<li>matured debentures with companies<\/li>\n\n\n\n<li>matured deposits with companies<\/li>\n\n\n\n<li>Application money received by the companies for allotment of any\n     securities and due for refund<\/li>\n\n\n\n<li>Interest accrued on amounts in reference to unpaid dividends and\n     matured debentures.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Dematerialisation_of_Physical_Shares\"><\/span>Dematerialisation of Physical Shares<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The process of transforming the physical holdings\ninto a digital form is called Dematerialisation. The Securities and Exchange\nBoard of India (SEBI) has forbidden the physical transfer of shares, so this\nDematerialisation makes the transfer of shares possible.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Documents_required_for_Recovery_of_Shares_from_IEPF\"><\/span>Documents required for Recovery of Shares from IEPF<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Following documents are required for recovering\nshares from IEPF:<\/p>\n\n\n\n<ul>\n<li>Claim form with the signature of the claimant and in case of joint      holders then with signatures of all the joint holders.<\/li>\n\n\n\n<li>Copy of acknowledgement bearing SRN number duly attested by the claimant.<\/li>\n\n\n\n<li>Indemnity Bond with the claimant&#8217;s signature&nbsp;<\/li>\n\n\n\n<li>Advance Stamped Receipt<\/li>\n\n\n\n<li>&nbsp;original certificate of a refund of matured deposit or debenture, or bonds<\/li>\n\n\n\n<li>Aadhar Card of the claimant and in case of joint holders, Aadhar      Card of all joint holders.<\/li>\n\n\n\n<li>PAN Card.<\/li>\n\n\n\n<li>Client Master List duly attested by the claimant.<\/li>\n\n\n\n<li>Share Certificate<\/li>\n\n\n\n<li>Proof of Entitlement<\/li>\n\n\n\n<li>Cancelled Cheque<\/li>\n\n\n\n<li>Passport, including OCI and PIO card in case of foreigners and NRI.<\/li>\n\n\n\n<li>If Joint Holder is deceased, then his death certificate.<\/li>\n\n\n\n<li>Other documents, if any.<\/li>\n<\/ul>\n\n\n\n<p>A verification report as a mandatory document is\nprovided to IEPF Authority by the Nodal Officer or Registrar of the company or\nbank.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Detailed_Procedure_for_Recovery_of_Shares_from_IEPF\"><\/span>Detailed Procedure for Recovery of Shares from IEPF<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The sole purpose of Investor Education Protection\nFunds (IEPF) is to protect investors&#8217; interests. However, claiming shares or\ndividends once it gets transferred to IEPF is not that easy for a shareholder.\nA specific procedure as prescribed by IEPF and related laws needs to be\nfollowed to recover shares from IEPF.<\/p>\n\n\n\n<p>An investor whose shares, unclaimed dividend,\nmatured debentures or deposits, application money to be refunded and interest\naccumulated on the same, sale proceeds of fractional shares, etc. has been\ntransferred to IEPF, then such investors claim their shares under the procedure\nmentioned under sub section (6) of Section 124 or apply under Subsection (3) of\nSection 125 of Companies Act 2013 from the appropriate Authority.<\/p>\n\n\n\n<p>If the claimant is a legal heir, nominee or\nsuccessor of a registered shareholder, then he or she must make sure that the\ncompany completes the transmission procedure and an entitlement letter is\nissued to him or her, then only he or she files an IEPF claim to the Authority.<\/p>\n\n\n\n<p>The Form suggested by IEPF for filing a claim for\nrecovery of shares is Form IEPF 5. However, before filing this Form IEPF 5, a\nnecessary approval from the company or RTA is required to avoid any objections.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Funds transferred to IEPF<\/h3>\n\n\n\n<p>The funds that are transferred to IEPF that can be\nclaimed later for recovery of shares from IEPF are as follows:<\/p>\n\n\n\n<ul>\n<li>Unclaimed Shares<\/li>\n\n\n\n<li>Unclaimed Dividends<\/li>\n\n\n\n<li>Unclaimed Debentures of companies and the interest accrued on them.<\/li>\n\n\n\n<li>Unrealised Proceeds from matured deposits of companies<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Requirements of Form IEPF 5 for Recovery of Shares\nfrom IEPF<\/h3>\n\n\n\n<p>To claim the shares, this IEPF 5 Form is filed by\nthe claimant. Only one claim is allowed in a year, and if the Form is rejected\nfor any of the reasons, then the claimant has to wait for next year. The Form\nIEPF 5 must contain the followings:<\/p>\n\n\n\n<ul>\n<li>Details of claimant<\/li>\n\n\n\n<li>Company details with the CIN number<\/li>\n\n\n\n<li>Details of the shares to be claimed<\/li>\n\n\n\n<li>The total amount of dividend to be claimed<\/li>\n\n\n\n<li>List of the deposits and securities made yearly.<\/li>\n\n\n\n<li>Aadhaar number and passport if in case the claimant is NRI.<\/li>\n\n\n\n<li>Bank account details linked with Aadhar number for the purpose of\n     refunding the claim amount.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Steps to be followed in case of Recovery of Shares\nfrom IEPF<\/h3>\n\n\n\n<p>Steps to be followed in case of Recovery of Shares\nare as follows:<\/p>\n\n\n\n<ul>\n<li>An investor who is claiming for recovery of shares first completes      its transmission procedure with the company before claiming any of its shares and then files an Application for such shares to the Ministry of  Corporate Affairs in provided <strong>IEPF Form 5<\/strong> with all the required details.<\/li>\n\n\n\n<li>Then the claimant sends the same Form to the Nodal Officer or      Registrar of the company along with all required documents. It is sent in  an envelope that is marked with &#8220;Claim for a refund from IEPF      authority&#8221;.<\/li>\n\n\n\n<li>A verified report is created by the company within 15 days and is      sent to the Authority in a prescribed format suggested by the Authority.<\/li>\n\n\n\n<li>After proper verification of the claimant&#8217;s entitlement, the      Authority and the Drawing and Disbursement Officer submit a bill to the Pay and Accounts Officer for payment based on the guidelines.<\/li>\n\n\n\n<li>Authority issues a sanction order for refund along with the      approval of competent Authority.<\/li>\n\n\n\n<li>Shares are credited either to the claimant&#8217;s demat account, and if      the share certificates are in physical form, then duplicate certificates      are cancelled, and shares are transferred to the claimant.<\/li>\n\n\n\n<li>The refund is made within 60 days after obtaining the verification      report from the company.<\/li>\n<\/ul>\n\n\n\n<p>Nodal Officer is either a Director, Chief Financial\nOfficer or Company Secretary of the Company. A company may appoint Deputy Nodal\nOfficer to assist the said Nodal Officer for the purpose of verification of\nclaims and to co-ordinate with Investor Education and Protection Fund (IEPF)\nAuthority in the matter of recovery of shares from IEPF. The Nodal Officer is\nmade liable for all actions of such Deputy Nodal Officer. And in the case where\nthe company fails to appoint a Nodal Officer, then every director of such\ncompany is considered as a Nodal Officer and is liable for every such failure\nsame as a Nodal Officer.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>For recovery of shares from IEPF, an application is filed in the prescribed form, i.e., Form IEPF 5. For the recovery of such shares, the Ministry of Corporate Affairs has introduced Investor Education and Protection Fund Rules, 2017. This Rule is made under Section 125 of the Companies Act, 2013. And as per this Rule, any unpaid or unclaimed dividend for more than seven consecutive years from the date of their declaration is transferred to the Investor Education and Protection Fund (IEPF). However, before applying for the recovery of such shares, one needs to complete the transmission procedure from the company. Once the application is filed in the prescribed Form, the Nodal Officer of the company verifies the claim, and after successful verification, it sends a verified report to IEPF Authority and then the Authority issues receipt as proof of transfer and a sanction letter for refund in favour of the claimant. Then the shares are transferred to the claimant. It is done within 60 days from the date of submission of the verification report from the company to the IEPF Authority.&nbsp;&nbsp; <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our Article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/investor-education-and-protection-fund-iepf\/\">Investor Education and Protection Fund- IEPF<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Any shareholder whose shares, unclaimed or unpaid dividend amount has been transferred to IEPF has the right to claim such shares or dividends from IEPF by following proper procedure for recovery of shares from IEPF. Introduction to IEPF IEPF is an abbreviation for Investor Education and Protection Fund. The Government of India constituted it under [&hellip;]<\/p>\n","protected":false},"author":36,"featured_media":45230,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[2495],"tags":[2494],"acf":{"service_id":"523"},"authorName":"Shambhavi Suyesha","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/03\/IMG-20220324-WA0005.jpg","authorDescription":"Shambhavi holds a strong legal background, having completed her BA LLB and LLM. She is particularly interested in legal research and writing, and wishes to utilise her knowledge to create informative legal content. She is an analytical researcher and keeps herself updated about the current legal affairs. She also holds prior experience in publishing articles on assorted legal areas.","postViews":7285,"readingTime":5,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/45227"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/36"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=45227"}],"version-history":[{"count":11,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/45227\/revisions"}],"predecessor-version":[{"id":65418,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/45227\/revisions\/65418"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/45230"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=45227"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=45227"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=45227"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}