{"id":12454,"date":"2022-12-03T13:06:14","date_gmt":"2022-12-03T13:06:14","guid":{"rendered":"https:\/\/swaritadvisors.com\/blog\/?p=12454"},"modified":"2022-12-13T06:01:30","modified_gmt":"2022-12-13T06:01:30","slug":"procedure-for-recovery-of-shares-from-iepf-in-india","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/blog\/procedure-for-recovery-of-shares-from-iepf-in-india\/","title":{"rendered":"Procedure for Recovery of Shares from IEPF in India"},"content":{"rendered":"\n<p>The\nshareholders may submit claims for the unpaid shares from the IEPF or Investor\nEducation and Protection Fund. Anyone who had their due shares or dividends\ntransferred to the IEPF can claim and recover those shares by adhering to a\nspecific Procedure for Recovery of Shares from IEPF.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a4da8e22f765\" class=\"ez-toc-cssicon-toggle-label\"><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><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a4da8e22f765\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/swaritadvisors.com\/blog\/procedure-for-recovery-of-shares-from-iepf-in-india\/#Overview_of_the_IEPF\" title=\"Overview of the IEPF\">Overview of the 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:\/\/swaritadvisors.com\/blog\/procedure-for-recovery-of-shares-from-iepf-in-india\/#Inclusions_of_the_IEPF\" title=\"Inclusions of the IEPF&nbsp;\">Inclusions of the IEPF&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/swaritadvisors.com\/blog\/procedure-for-recovery-of-shares-from-iepf-in-india\/#Removal_of_physical_shares_from_circulation\" title=\"Removal of physical shares from circulation\">Removal of physical shares from circulation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/swaritadvisors.com\/blog\/procedure-for-recovery-of-shares-from-iepf-in-india\/#Who_Has_the_Right_to_Recover_Shares_from_the_IEPF_Authority\" title=\"Who Has the Right to Recover Shares from the IEPF Authority?\">Who Has the Right to Recover Shares from the IEPF Authority?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/swaritadvisors.com\/blog\/procedure-for-recovery-of-shares-from-iepf-in-india\/#Documents_necessary_for_reclaiming_shares_from_IEPF\" title=\"Documents necessary for reclaiming shares from IEPF\">Documents necessary for reclaiming shares from IEPF<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/swaritadvisors.com\/blog\/procedure-for-recovery-of-shares-from-iepf-in-india\/#Form_IEPF_5_Requirements_for_Recovering_Shares_from_IEPF\" title=\"Form IEPF 5 Requirements for Recovering Shares from IEPF\">Form IEPF 5 Requirements for Recovering Shares from IEPF<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/swaritadvisors.com\/blog\/procedure-for-recovery-of-shares-from-iepf-in-india\/#Steps_to_take_if_the_IEPF_recovers_shares\" title=\"Steps to take if the IEPF recovers shares\">Steps to take if the IEPF recovers shares<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/swaritadvisors.com\/blog\/procedure-for-recovery-of-shares-from-iepf-in-india\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Overview_of_the_IEPF\"><\/span>Overview of the IEPF<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Indian government&#8217;s Ministry of Corporate Affairs established the Investor Education and Protection Fund on September 7, 2016. The laws of Section 125, Subsections (5), (6), and (7) of the Companies Act 2013 were used to create the IEPF regulations. The &#8220;Investor Education and Protection Fund&#8221; is discussed in Section 125, and the subsections therein discuss the rules and laws that are made in support of the companies or investors related to the IEPF. The IEPF was established to safeguard the interests of Investors who have stock market investments with unpaid dividends. The claim may be redeemed by adhering to the Procedure for <strong><a href=\"https:\/\/swaritadvisors.com\/recovery-of-shares\" class=\"text-primary\">Recovery of Shares from IEPF<\/a><\/strong>. Suppose no one claims the dividends on a share for seven consecutive years. In that case, the dividends are transferred to the IEPF minus any bonus shares for those seven years. The shareholders are always advised to make prompt dividend claims and to keep timely tabs on their finances.<\/p>\n\n\n\n<p>The\nresponsibility for managing the IEPF and returning unclaimed dividends,\ndeposits, or debentures to investors falls on the Investor Education and\nProtection Fund authority. The Authority also monitors investor education\nefforts and works to safeguard their interests in the Market.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Inclusions_of_the_IEPF\"><\/span>Inclusions of the IEPF&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The\nInvestor Education and Protection Fund is a fund that the Central Government\nestablishes under Section 125 of the Companies Act of 2013. The IEPF is\ncredited with the following:<\/p>\n\n\n\n<ul><li>Amount awarded as grants by the\ngovernment.<\/li><\/ul>\n\n\n\n<ul><li>contributions made to the IEPF by\nthe state, businesses, or other institutions<\/li><\/ul>\n\n\n\n<ul><li>The sum that was transferred to\nthe fund from the Unpaid Dividend Account<\/li><\/ul>\n\n\n\n<ul><li>The amount of the Central\nGovernment&#8217;s general revenue account<\/li><\/ul>\n\n\n\n<ul><li>The amount maintained under\nSection 205 C of the Companies Act of 1956&#8217;s Investor Education and Protection\nFund<\/li><\/ul>\n\n\n\n<ul><li>Interest or other income received\nfrom Fund investments<\/li><\/ul>\n\n\n\n<ul><li>the sum of money received under\nthe section<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Removal_of_physical_shares_from_circulation\"><\/span>Removal of physical shares from circulation<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Dematerialization\nis the process of converting physical holdings into digital Form. Since the\nphysical transfer of shares is prohibited by SEBI, this dematerialization\nallows for the transfer of shares.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Who_Has_the_Right_to_Recover_Shares_from_the_IEPF_Authority\"><\/span>Who Has the Right to Recover Shares from the IEPF Authority?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>You\nare qualified to receive a refund from the Investor Education &amp; Protection\nFund if you are a shareholder with shares that have been transferred to the\nIEPF but have not been claimed. Applying to the IEPF Authority will start the\nprocess. A claimant can only submit one claim per Company during a fiscal year\nby Rule. Before claiming the IEPF, claimants must follow all necessary legal\nrequirements. Before approving the claim, the Company should also issue an\nentitlement letter.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Documents_necessary_for_reclaiming_shares_from_IEPF\"><\/span>Documents necessary for reclaiming shares from IEPF<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>You are qualified to receive a refund from the Investor Education &amp; Protection Fund if you are a shareholder with shares that have been transferred to the IEPF but have not been claimed. Applying to the IEPF Authority will start the process. A claimant can only submit one claim per Company during a fiscal year by Rule. Before claiming the IEPF, claimants must follow all necessary legal requirements. Before approving the claim, the Company should also issue an entitlement letter.<\/p>\n\n\n\n<p>The\nfollowing documents must be submitted to start the Procedure for the Recovery\nof Shares from IEPF:<\/p>\n\n\n\n<ul><li>Form of claim signed by the\nclaimant and, in the case of joint holders, by all of the joint holders.<\/li><\/ul>\n\n\n\n<ul><li>A copy of the acknowledgement with\nthe claimant&#8217;s proper attestation and the SRN number.<\/li><\/ul>\n\n\n\n<ul><li>With the claimant&#8217;s signature, an\nindemnity bond<\/li><\/ul>\n\n\n\n<ul><li>Advance Receipt with a Stamp<\/li><\/ul>\n\n\n\n<ul><li>Original certificate for a refund\nof bonds, debentures, or deposits that have matured<\/li><\/ul>\n\n\n\n<ul><li>Aadhar cards for both the claimant\n&amp; if there are joint holders, each joint holder&#8217;s Aadhar cards.<\/li><\/ul>\n\n\n\n<ul><li>Card PAN.<\/li><\/ul>\n\n\n\n<ul><li>Client Master List that the\nclaimant has properly attested.<\/li><\/ul>\n\n\n\n<ul><li>Certificate of Shares<\/li><\/ul>\n\n\n\n<ul><li>Evidence of Eligibility<\/li><\/ul>\n\n\n\n<ul><li>Returned Check<\/li><\/ul>\n\n\n\n<ul><li>Passport, along with OCI and PIO\ncards for foreign nationals and NRIs.<\/li><\/ul>\n\n\n\n<ul><li>A death certificate for the Joint Holder\nis necessary if he has passed away.<\/li><\/ul>\n\n\n\n<ul><li>Additional records, if any.<\/li><\/ul>\n\n\n\n<p>The Nodal Officer or Registrar&nbsp;is required to submit a verification report to the IEPF Authority.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Form_IEPF_5_Requirements_for_Recovering_Shares_from_IEPF\"><\/span>Form IEPF 5 Requirements for Recovering Shares from IEPF<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>This\nIEPF 5 Form is submitted by the claimant to claim the shares. There can be only\none claim per year &amp; if the Form is rejected for listed reasons, the\nclaimant must wait until the following year. The following information must be\non Form IEPF 5:<\/p>\n\n\n\n<ul><li>Information about the claimant<\/li><\/ul>\n\n\n\n<ul><li>company information, along with the CIN number<\/li><\/ul>\n\n\n\n<ul><li>Information on the shares that\nmust be claimed<\/li><\/ul>\n\n\n\n<ul><li>The total dividend amount that\nmust be claimed<\/li><\/ul>\n\n\n\n<ul><li>A list of the annual deposits and\nsecurities.<\/li><\/ul>\n\n\n\n<ul><li>An Aadhaar number and passport are\nrequired if the claimant is an NRI.<\/li><\/ul>\n\n\n\n<ul><li>Aadhar number-linked bank account\ninformation is used to refund the claim amount.<\/li><\/ul>\n\n\n\n<p><strong>Details on Procedure for Recovery of Shares\nfrom IEPF<\/strong><\/p>\n\n\n\n<p>Investor\nEducation Protection Funds (IEPF) exist solely to safeguard the interests of\ninvestors. However, once transferred to the IEPF, shareholders need help to\nclaim their shares or dividends. To recover shares from the IEPF, a specific Procedure\nfor Recovery of Shares from IEPF and related laws must be followed.<\/p>\n\n\n\n<p>Investors whose shares, unclaimed dividends, matured debentures\/deposits\/ application money to be refunded &amp; interest accrued on the same and sale proceeds of fractional shares, etc., have been transferred to IEPF may apply under subsection (3) of Section 125 of the Companies Act 2013 from the appropriate Authority to claim their shares under the procedure outlined in subsection (6) of Section 124.<\/p>\n\n\n\n<p>Suppose\nthe claimant is a registered shareholder&#8217;s legal heir, nominee, or successor.\nIn that case, the Company must complete the transmission procedure and issue\nthe claimant with an entitlement letter before the claimant can submit an IEPF\nclaim to the Authority.<\/p>\n\n\n\n<p>Form\nIEPF 5 is the IEPF&#8217;s recommendation for submitting a claim to recover shares.\nHowever, to avoid any objections, the Company or RTA must first give their\nnecessary approval before filing this Form IEPF 5.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Steps_to_take_if_the_IEPF_recovers_shares\"><\/span>Steps to take if the IEPF recovers shares<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Following\nis the Procedure for Recovery of Shares from IEPF:<\/p>\n\n\n\n<ul><li>The First Procedure for Recovery\nof Shares from IEPF is that before claiming any of the Company&#8217;s shares, an\ninvestor requesting recovery of shares must finish their transmission procedure\nwith the Company. They must submit an Application to the Ministry of Corporate\nAffairs in the given IEPF Form 5[1] with all the necessary information.<\/li><\/ul>\n\n\n\n<ul><li>The claimant then sends the same Form and all necessary documents to the Company&#8217;s Nodal Officer or Registrar. It is delivered in a package labelled &#8220;<strong>Claim for a refund from IEPF authority.<\/strong><sup><a href=\"https:\/\/www.iepf.gov.in\/IEPF\/refund.html\" class=\"text-primary\"><strong>[1]<\/strong><\/a><\/sup>&#8220;<\/li><\/ul>\n\n\n\n<ul><li>Within 15 days, the Company must\nproduce a verified report and send it, in a format recommended by the\nAuthority, to the Authority.<\/li><\/ul>\n\n\n\n<ul><li>The Authority &amp; the Drawing\nand Disbursement Officer properly verify the claimant&#8217;s eligibility. Then they\nsubmit a bill to the Pay and Accounts Officer for payment under the rules.<\/li><\/ul>\n\n\n\n<ul><li>Authority issues a sanction order\nfor a refund along with the competent Authority&#8217;s approval.<\/li><\/ul>\n\n\n\n<ul><li>If the claimant has physical share\ncertificates, duplicate certificates are cancelled, and shares are transferred\nto the claimant. Alternatively, shares may be credited to the claimant&#8217;s Demat\naccount.<\/li><li>Once the Company has provided the\nverification report, the refund is processed within 60 days.<\/li><\/ul>\n\n\n\n<p>Nodal\nOfficers are the Company&#8217;s directors, chief financial officers, or company\nsecretaries. A company may designate a Deputy Nodal Officer to assist the named\nNodal Officer in verifying claims and coordinating with the Investor Education\nand Protection Fund Authority regarding the recovery of shares from IEPF. All\nof the Deputy Nodal Officer&#8217;s actions are held accountable to the Nodal\nOfficer. Additionally, if the Company does not appoint a Nodal Officer, then\neach director of that Company is deemed to be a Nodal Officer and is held\naccountable for all failures in the same manner 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>An application is submitted in the required Form, Form IEPF 5, as a Procedure for the Recovery of Shares from IEPF. The Ministry of Corporate Affairs has released the 2017 Investor Education and Protection Fund Rules to recover such shares. According to Section 125 of the 2013 Companies Act, this Rule was created. Additionally, under this Rule, any dividend that is unpaid\/ unclaimed for more than seven years in a row following the date of declaration is transferred to the Investor Education &amp; Protection Fund (IEPF). However, one must finish the Company&#8217;s transmission process before applying for the recovery of such shares. The Nodal Officer of the Company verifies the claim after it is submitted in the designated Form, and following successful verification, it sends a verified report to the IEPF Authority. The Authority then issues a receipt as evidence of transfer and a sanction letter for a refund in the claimant&#8217;s favour. The claimant is then given ownership of the shares. It is completed within 60 days of the Company submitting its verification report to the IEPF Authority.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our Article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/blog\/difference-between-transmission-of-shares-and-transfer-of-shares\/\">Difference between Transmission of Shares and Transfer of Shares<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The shareholders may submit claims for the unpaid shares from the IEPF or Investor Education and Protection Fund. Anyone who had their due shares or dividends transferred to the IEPF can claim and recover those shares by adhering to a specific Procedure for Recovery of Shares from IEPF. Overview of the IEPF The Indian government&#8217;s [&hellip;]<\/p>\n","protected":false},"author":13,"featured_media":12457,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1070],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/12454"}],"collection":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/comments?post=12454"}],"version-history":[{"count":7,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/12454\/revisions"}],"predecessor-version":[{"id":12493,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/12454\/revisions\/12493"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media\/12457"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media?parent=12454"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/categories?post=12454"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/tags?post=12454"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}