The Government of India established the Investor Education and Protection Fund (IEPF) to safeguard investor interests. When shareholders fail to claim their dividends or do not operate their accounts for seven consecutive years, their Shares Moved to IEPF. However, investors can reclaim their shares through a structured process.
Understanding Why Shares Are Transferred to IEPF
The transfer of shares to IEPF occurs due to inactivity in shareholder accounts. According to the Companies Act, 2013, if dividends remain unpaid for seven consecutive years, the corresponding shares are transferred to IEPF. The objective is to ensure that unclaimed shares and dividends are safeguarded and can be recovered by their rightful owners.
What Happens to Shares Moved to IEPF?
Once shares are transferred, they are maintained by the IEPF Authority under the Ministry of Corporate Affairs. Shareholders or their legal heirs can submit claims to recover their shares and unpaid dividends. The process involves documentation, verification, and approval from the IEPF Authority.
How to Claim Shares Transferred to IEPF?
If your shares have been moved to IEPF, follow these steps to reclaim them:
1. Check Your Eligibility
Before applying, verify whether your shares have been transferred by checking the company’s website or the IEPF portal.
2. Gather Necessary Documents
To initiate the claim process, you need:
- Aadhar card and PAN card
- Proof of ownership (share certificate or Demat statement)
- Canceled cheque
- Dividend warrants (if available)
- Indemnity bond and affidavit as per IEPF rules
3. Fill and Submit IEPF Form-5
- Download the IEPF Form-5 from the Ministry of Corporate Affairs (MCA) portal.
- Fill in the required details and upload the necessary documents.
- Print and sign the form before submitting it to the respective company.
4. Submit to the Company
After filing Form-5, send the physical copy and required documents to the company’s Nodal Officer. The company will verify the details before forwarding the claim to IEPF.
5. Approval and Refund
Once the IEPF Authority verifies and approves your claim, the shares and unpaid dividends will be transferred to your Demat account. The process may take a few months, depending on the verification stage.
Why Choose Share Claimers for IEPF Recovery?
Claiming shares from IEPF involves legal and procedural complexities. Share Claimers simplifies the process by:
- Providing expert guidance for documentation and verification.
- Assisting in error-free form submission.
- Liaising with companies and IEPF authorities for faster approvals.
Conclusion
If your Shares Transferred to IEPF, reclaiming them is possible with the right steps. By following the official process and seeking expert assistance from Share Claimers, you can recover your investments efficiently. Don’t let your hard-earned shares remain unclaimed—act today!
