How To Seek Refund for Unclaimed Dividends, Deposits and Application Money from IEPFA

Moneylife Digital Team 13 January 2022

Investor Interest

After remaining aloof for several years, the Investor Education and Protection Fund Authority (IEPFA) has become active on social media and responds to grievances posted by people there. Further, the ministry of corporate affairs (MCA) has simplified the claim settlement process for investors by rationalising various requirements. Investors can claim refunds of unclaimed dividends, deposits and application money that companies have transferred to the IEPFA.

Moneylife has been writing on the cumbersome process adopted by IEPFA for refunding investors’ money. The process was so tiresome that investors or their heirs were willing to pay as much as 50% of the due amounts to ‘middlemen’ or ‘agents’ to get their money back. (Read: Shouldn’t Regulators Be Accountable for Returning Rs82,000 Crore of Unclaimed Money To Savers?)

For claimants, the requirement of advance receipt has been waived off, the requirement of succession certificate, probate of a will and will has been relaxed up to Rs5 lakh both for physical and demat shares, notarisation of documents has been replaced with self-attestation and requirements of affidavits and surety relatively have been eased.

For companies, the requirement of attaching documents related to an unclaimed suspense account has been eased. Companies have been given the flexibility to accept transmission documents like succession certificates or will as per their internal approved procedures. Requirement for a newspaper advertisement for loss of physical share certificate has been waived off up to an amount of Rs5 lakh.

According to MCA, the focus of the change has been to make the process simpler and quicker for the claimants. “The new regime envisages a trust-based model for faster citizen-centric services and turnaround time. It is expected that with these changes, many more claimants shall come forward to claim their shares and amounts from IEPFA,” it says.

Investors, whose shares, unclaimed dividend, matured deposits, debentures, application money or interest has been transferred to IEPFA can seek a refund.

IEPF Authority through various programs have been reaching out to all its stakeholders including claimants. Claim process is zero cost, transparent and completely online.https://t.co/XvHRyi9Pee https://t.co/tZnRno1Wxn https://t.co/jI2LHVyHnM https://t.co/Iz4p5oCu5C @icsi_cs
— IEPFA (Investor Education and Protection Fund) (@authorityiepf) January 12, 2022

As of January 2022, IEPFA has refunded more than 1.42 crore shares worth more than Rs1,425 crore.

Within a short period since inception, the Authority has managed to refund record 1.42 Cr shares, worth more than Rs 1425 Cr despite Covid related disruptions @icsi_cs @theicai @PIB_India @FinMinIndia @nsitharamanoffc @Rao_InderjitS @nsitharaman pic.twitter.com/9ZUqLAn3Hq
— IEPFA (Investor Education and Protection Fund) (@authorityiepf) January 12, 2022

Any person whose unclaimed or unpaid amount has been transferred by the company to IEPF may claim their refunds to the IEPF authority. To claim such an amount, the claimant needs to file form IEPF-5 and requisite documents. http://www.iepf.gov.in/IEPF/refund.html

Investors can also search unclaimed and unpaid amounts on the IEPFA website. The search facility needs the full name of the investor, full name of the investor’s father or husband, folio number and DP ID or client ID account number.

How To Claim Refund

1. Download the form IEPF-5 from the IEPF website for filing the claim for refund. Read the instructions provided on the website or instruction kit along with the e-form carefully before filling the form.

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. On successful uploading, an acknowledgement will be generated indicating the SRN. Please note the SRN for future tracking of the form.

3. Take a printout of the duly filled IEPF-5 and the acknowledgement issued after uploading the form.

4. Submit indemnity bond in the original, copy of acknowledgement and self-attested copy of e-form along with the other documents as mentioned in the Form IEPF-5 to Nodal Officer (IEPF) of the company at its registered office in an envelope marked “Claim for refund from IEPF Authority”.

5. Claim forms completed in all aspects will be verified by the concerned company and on the basis of company’s verification report, refund will be released by the IEPF Authority in favor of claimants’ Aadhaar linked bank account through electronic transfer.

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