With this body, shareholders can claim shares from the IEPF account. So, this blog talks about what is IEPF & how the entire procedure works. If you have any doubts regarding transferring or the process of IEPF you can consult our legal advisor for the same.

What is IEPF?

When unclaimed firm shares, debentures, and bonuses were transferred to a government agency for the benefit of the public and shareholders were unable to make a claim on such shares. Then, the government established an organisation called IEPF, through which any investment that goes unclaimed or underpaid for 30 days is moved within 7 days from the underpaid Dividend Account to the IEPF Account. An organisation or shareholder may claim shares from IEPF through IEPF.

Read Also This – Detailed Procedure for Recovery of Shares From IEPF

What is the role of IEPF for unclaimed shares?

The lost and unclaimed share can be because of many reasons like loss, damage, Mutilated Share Certificates, expired Records, Improper execution of transmission, death, etc. IEPF stands for Investor Education and Protection Fund serves as a government Body & authorities like SEBI and MCA are in charge of transferring or recouping such kinds of securities through a well-defined procedure. Some of the reasons for the recovery of Shares From IEPF are mentioned below which can be a little complicated & shareholders need to take cautious advice from a well professional or skilled person to make the process faster & hassle manners. So you can also consult India’s Best Share Recovery Consultant which can give you the best assistance in such a process.

What is the role of the Best Share Recovery Consultant?

The lost and unclaimed shares may have been misplaced, damaged, destroyed, destroyed, expired records, improperly sent, deceased, etc. The Investor Education and Protection Fund, often known as IEPF, is a government agency, and organisations like SEBI and MCA are responsible for transferring or recovering these types of securities through a clear process. The following list contains some of the most complicated grounds for recovering shares from the IEPF. In order to expedite and simplify the procedure, shareholders should heed the counsel of professionals. Therefore, you may also speak with India’s Best Share Recovery Consultant who can offer you the best help throughout such a process.

A step-by-step guide to claim shares from IEPF

1. Reading advice: Download the Instruction Page for recovery of Shares from IEPF from the official website of IEPF before filling out the online IEPF-5 form.

2. Filling out the IEPF-5 application form: To claim shares from the IEPF, applicants must complete the application in the format specified and include all pertinent information.

3. Obtaining an automatically produced number: After submitting an online form, you will receive an automatic acknowledgment number, also known as a Service Request Number (“SRN”), which you can retain to monitor the progress of your application.

4. Submission of paperwork to the appropriate authority: After completing the online form through the IEPF, the company or shareholder must send the form, supporting documentation, and the aforementioned Service Request number to the Nodal Officer/Registrar of the company in order to begin the claim’s verification.

5. Verification of the completed form: After the relevant authority has examined the application and supporting documentation, within 15 days, they will produce a company’s verification report. Based on this report, the IEPF account will release the refund in favour of the claimant’s Aadhaar-linked bank account via electronic transfer. And the form should be amended and resent if any changes or modifications need to be made.

6. Claim from IEPF: Shareholders may now request shares from the IEPF account when the concerned authority has been satisfied by reviewing the papers and claim form. At that point, the concerned authority will proceed with the refund of the money to the account.

Documents required for lost and unclaimed share

• Aadhaar card of claimant & all shareholders (For Indian citizens).
• Proof of entitlement (certificate of share or Application No. etc.)
• Cancelled Cheque to claim shares from the IEPF account.
• Passport, OCI, and PIO card (For foreigners & NRI).
• PAN Card to claim shares from IEPF.
• Demat A/c of the claimant(Client Master List).
• Death certificate (For Deceased Joint holder).
• Stamped receipt (signature of the claimant and two witnesses).
• Indemnity Bond(signature of the claimant).
• Non-judicial Stamp Paper of the value (unpaid amount of the claim is Rs.10,000 or more) or otherwise on plain paper.
• Non-judicial Stamp Paper of the value (For refund of shares)

Reasons for lost and unclaimed share

• Wear and tear of certificate: The issue of mutilated share certificates, which indicates that your certificate has been damaged due to inappropriate handling for any reason, is also a major obstacle to the recovery of shares from the IEPF.
• Non-Submission of Transfer Deed: This occurs when the buyer pays the money but fails to submit the transfer deed even though the shares are still in the seller’s name. Therefore, claimants won’t be able to file a claim in this instance either. If you want to file a claim for IEPF shares, see Legalraasta.
• Wrong information: Inputting incorrect or out-of-current information about your name, age, father’s name, date of birth, address, or marital status is another factor in unclaimed shares. So, obtaining claim shares from IEPF is another way to fix this issue.
• Another factor is improper execution or submission of shares, which can result in the buyer’s shares occasionally remaining in the seller’s name due to physical shares or in the submission of shares on behalf of the deceased person due to physical shares such as fraud from the concerned company, lack of effort, etc.
• Jointly Held Securities: Another reason for lost and unclaimed shares can be the claimant having a partner or joint securities so, in that case, it is very difficult to remove the name of the joint shareholder because of any reason like the joint shareholder is a deceased person. So in this situation recovery of shares from iepf is also possible which can be done with the help of a best advisory agent.
• Multiple Holdings in Different Companies: If you have multiple holdings of different companies then you must send the relevant documents & follow up with each company constantly according to the different policies of different companies.
• Shares and dividends that are misplaced: Due to bad circumstances, it is often impossible for shares, dividends, or bonuses to find their way or to know where they are, which results in certificates being lost. Therefore, one may also claim shares from IEPF in this circumstance.
• Mismatched signature: When you change your signature over time and your certified signature doesn’t match the prior record when you sign documents, there are additional reasons why you won’t be able to get a claim from the government. Legalraasta is here to provide you with the necessary direction and support so that you can claim shares from IEPF.

When is the transfer of the shares required?

If shares or unclaimed dividends are not utilized, claimed, or paid for within 30 days of the declaration date, they are transferred to the unclaimed dividends account and subsequently to the IEPF if they are not used for 7 years in a row.

Therefore, you can claim shares from the IEPF by simply following the aforesaid approach or by getting in touch with the top share recovery consultant in India, such as Legalraasta, who can provide you with the necessary assurance for getting the claim.

Conclusion –

We may now draw the conclusion that the IEPF is the recognized government agency through which you can reclaim shares or dividends that have gone unclaimed for a variety of reasons, including an incorrect entry, a deceased individual, jointly held securities, an incorrect submission of a deed, etc.

We are here to help you with the proper steps for claiming shares from iepf if you are one of the victims of issues relating to unclaimed shares or dividends, even after the government has taken steps to ensure the security of unclaimed dividends, deposits, debentures, split shares, bonuses, etc.

Without proper guidance about the entire process and its legalities, recovering shares can become complicated and time-consuming. To avoid this, contact Legalraasta, the Best Share Recovery Consultant in India, at any time you need assistance.

We hope you fully grasped the procedure for obtaining claims from iepf. If you thought our article was relevant and helpful to others as well, please spread the word to other social media sites and those in need.

The post All You Need to Know for Recovery of Shares from IEPF appeared first on LegalRaasta Knowledge portal.

Except for bonus or split shares of such seven years, the investors’ dividends or shares are transferred to the IEPF Authority when they are not claimed or cashed for seven years. Therefore, shares from the IEPF are recovered using government authority. You can get the information you need to claim shares from the IEPF government body by using this blog.

What is IEPF?

The Central Government of India (GoI) created the Investor Education and Protection Fund (IEPF), which was established under Section 125 of the Companies Act 2013, to safeguard the interests of investors and raise awareness. Investors’ shares that have been lost or are unclaimed are gathered and credited to the IEPF.

The central government of India appoints the chairman or CEO and the other 7 members of the IEPF Authority. In compliance with the Act’s provisions, the IEPF Authority manages the IEPF funds and keeps separate accounts for the Recovery of Shares from IEPF and other pertinent records relating to the funds. This is done following consultation with the Comptroller & Auditor-General of India. Each year, the Authority will send the Central Government of India the accounts and the audit report.

Importance of IEPF

Companies used to transfer unclaimed dividends and unclaimed shares to the government funds before claiming shares from the iepf, which were then used for various public welfare programs and various development projects. Yet, the incidence of people forgetting their shares was rising daily, costing investors a great deal of money. So, the government introduces a program called IEPF, where all unclaimed shares are moved to an IEPF account. The sum transferred by the corporations for such claim shares from IEPF shall be used for the benefit and awareness of the investors. Instead of visiting each company separately, people can claim their dividends and shares related to various companies under a single platform.

Can IEPF share ownership be regained?

A shareholder can file Form IEPF-5 on the Ministry of Corporate Affairs website to claim the shares from IEPF. The joint holder, legal heir, or nominee may claim shares from the IEPF of a deceased person in the event of the death of the shareholder. You can receive a free consultation from Best Share Recovery Consultant Legalraasta, which can provide you with the appropriate counsel for obtaining a claim, and expert guidance to help you reach your financial objectives more quickly.

What are the IEPF’s Purposes in India?

To improve investor education and protect investor interests, the Central Government established the Investor Education and Protection Fund (IEPF).

If a corporation has sent unclaimed or underpaid funds to the IEPF, individuals may ask for a refund from the IEPF Authorities.

The corporation is required to provide the IEPF Authority with the statement explaining the specifics of the transfer in the approved format, IEPF-5, and the Authority will issue a receipt as proof of the transfer for unclaimed dividend transfer to iepf.

The corporation shall transfer to the IEPF the shares for which the dividend has not been paid or claimed for more than seven years and shall deliver a declaration specifying the terms of the transfer.

Dematerialization Of Physical Shares

Dematerialization is the process of converting physical things into digital form. Since the physical transfer of shares is prohibited by the Securities and Exchange Board of India (SEBI), this dematerialization allows for the transfer of shares.

Process for recovery of shares from IEPF

Step 1: Before claiming shares from the IEPF, the claimant must first establish that the company has completed the share transmission procedure and has issued an entitlement notice.

Step 2: Complete Form IEPF-5 online and send it to the official MCA website the government with all the necessary information. Only one claim may be made each year, and if the Form is denied for any of the listed reasons, the next year may be used to request shares from the IEPF.

Step 3: You will be given an SRN number to follow the status of the report when the Form has been submitted successfully.

Step 4: To begin the verification of the claim from the IEPF, the claimant should transmit the identical form, along with all necessary supporting documentation, to the Nodal officer after submitting the e-form.

Step 5: Within 15 days of obtaining the claim form, the corporation must provide a verification report to the Authority detailing whether the authentication was accepted or rejected.

Step 6: A penalty of fifty rupees per day is imposed on the company if the online verification report is not supplied by the company within thirty days of the claim being filed. The corporation will be punished by the act’s requirements if it fails to provide a report verifying the allegation.

Step 7: The IEPF authority issues a sanction order for a refund of shares in the claimant’s favor after verifying the claimant’s eligibility and the verification report. After the company submits the verification report to the IEPF Authorities, the shares will be credited to the claimant’s Demat account within 60 days after that date.

Documentation Need To Retrieve Shares From the IEPF

• A Copy of the acknowledgment i.e.SRN number.
• An indemnity bond.
• For IEPF shares, submit an advance stamped receipt.
• Certificate for the return of bonds, debentures, or deposits that have matured.
• Aadhar cards for all joint holders and the claimant.
• PAN Card for unclaimed dividend transfer to the claimant’s proper attestation on the iepf Client Master List.
• Passport, including OCI and PIO cards in the case of foreigners and NRIs, Share Certificate, Proof of Entitlement, and Cancelled Cheque.
• Details of the verification report and bank account.
• Information about the application, including the CIN number of the business.
• Information on the shares to be claimed, dividends that have been claimed, and securities or deposits made each year.
• Certificate of death for the dead joint holder.

Many causes of unclaimed or lost shares

• No Nominee: It is typical to see investors leave their shares without a nominee following their passing. In this situation, the shares are still unclaimed because the legal heirs are ignorant of them. This is a justification for claiming a deceased person’s IEPF shares.
• Little Investments: Another factor could be that when an investor makes a modest investment, they are more likely to forget about it.
• Property Dispute: In cases where shares are attached to the court due to litigation involving a property dispute, the shares remain ownerless until the court issues its ruling. Another reason for lost and unclaimed shares is when an investor forgets they own stock in the company; as a result, the corporation has trouble identifying the true owner of the shares.

Conclusion –

The Companies Act needs to be changed, according to the Ministry of Corporate Affairs (MCA), so that the government can take over the task of transferring shares from corporations. The claimant would have to approach the government to transfer shares into his or her name as a result of the changes to the Companies Act, according to ministry officials. It is advised that shareholders keep track of their money and claim their dividends on time.

We sincerely hope you liked reading our blog and learned something useful. We hope that this blog post has helped to clear up some of your questions about claiming shares from the iepf. If you still have questions, you may contact Legalraasta Advisor, the top share recovery consultant in India, who will help you through the process quickly and easily.

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