What is the use of IEPF?

The Authority is entrusted with the responsibility of administration of the Investor Education Protection Fund (IEPF), make refunds of shares, unclaimed dividends, matured deposits/debentures etc. to investors and to promote awareness among investors.

Why do shares transfer to IEPF?

All shares of the Company in respect of which dividends have remained unclaimed or un-encashed for seven consecutive years or more, are required to be transferred by the Company to the Investor Education and Protection Fund (‘IEPF’) established by the Government of India.

How do I claim an Iepf?

Procedure to claim Refund

1. Download the form IEPF-5 from the website of IEPF (http://www.iepf.gov.in) for filing the claim for refund.
2. After filling the form save it on your computer and submit the duly filled form by following the instructions given in the upload link on the website.

How shares are transferred to IEPF?

On receipt of the application, a new share certificate for each such shareholder shall be issued. After issue of a new share certificate, the company to inform the depository by way of corporate action to convert the shares into DEMAT form and transfer in favour of the IEPF Authority.

How do I claim unpaid dividends?

a. Forward a request letter in the prescribed format (Annexure-I) to M/s Alankit Assignments Limited, Registrar and Transfer Agent (RTA) along with the Original Dividend Warrant / Demand Draft, Cancelled Cheque, Address Proof & PAN Card for crediting the dividend directly in the bank account.

What happens to unclaimed shares in India?

Unclaimed shares over seven years will soon be transferred to Government of India. Total of such shares outstanding can only be estimated. If you apply dividend yield of NIFTY 500 to annual unclaimed dividend, you will get a value in excess of Rs. 1,00,000 Crores.

How much time does it take to get shares from IEPF?

As per the current process, the company has to send the verification report regarding the claim to the IEPF Authority within 15 days. After getting the claim verified, the authority has to sanction refund through e-payment within 60 days.

How much time does it take to claim shares from IEPF?

In case of non receipt of documents by the Authority after the expiry of 60 days from the date of filing of Form IEPF-5, the Authority may reject Form IEPF-5, after giving an opportunity to the claimant to furnish response within a period of 15 days.

How do I claim an Iepf stock for a deceased person?

In case of death of the sole holder, the legal heir of the deceased must request to DP (Depository Participant) for transmission of shares in his/her name by duly filling the “Transmission Form” along with following documents: a) A copy of the notarized death certificate.

Are old stock certificates still valid?

An old stock or bond certificate may still be valuable even if it no longer trades under the name printed on the certificate. The company may have merged with another company or simply changed its name.

How do I claim dividends after 7 years?

As per, Section 124(5) of the Companies Act 2013, any dividend amounts, which remains unpaid or unclaimed for a period of 7 years from the date they became due for payment, shall be finally transferred by the company to the IEPF.