How to Claim Shares from IEPF?

Minakshi Bindhani

17 Apr, 2023

IEPF means Investor Education and Protection Fund, a fund founded by the Indian government under the Companies Act 2013^[1] to promote investor awareness and protect the interests of investors.
Suppose in a company, and the shares have been transferred to the IEPF due to non-communication or non-compliance with company rules for a certain period. In that case, shareholders can claim these shares by following a specific process.
To claim the shares from IEPF, the shareholder must first check if they can claim them by visiting the IEPF website and checking the list of eligible shareholders. If eligible, download the IEPF-5 form from the IEPF website and fill it out with accurate and up-to-date information, including the details, bank details, and the shares the shareholders claim. The shareholder must also attach all the required documents, such as proof of address, identity, proof of ownership of shares, and any other relevant documents specified in the form.

After completing the form and the shareholder attaching all the required documents, they submit them to the nearest IEPF regional office within the specified timeline. After verifying the details and documents, the IEPF authority will transfer the shares to the shareholder demat account or issue a refund of the value of the shares.

It is important to note that claiming shares from IEPF can be time-consuming and may require legal assistance in some cases. Therefore, professional help or guidance from a chartered accountant or company secretary is advisable to ensure a smooth and hassle-free claim process.

Objective

The objective of providing a guide on how to claim shares from IEPF is to help shareholders who have had their shares transferred to the IEPF due to non-compliance with company rules to understand the process of claiming their shares. By providing a step-by-step process, this guide aims to help eligible shareholders claim their shares from the IEPF in a timely and efficient manner and also to increase awareness of the IEPF and its role in protecting the interests of investors. This guide also highlights the importance of following the correct procedure and submitting accurate and up-to-date information and documents to ensure a smooth and hassle-free claim process. This guide aims to empower shareholders with the knowledge and information they need to claim their shares from the IEPF and protect their investment interests.

Significance

• The significance of knowing how to claim shares from IEPF is that it empowers shareholders to protect their investment interests and reclaim their shares that were transferred to the fund due to non-compliance with company rules. With the steps outlined in this guide, eligible shareholders can claim their shares promptly and efficiently, thus minimising the risk of losing their investment.
• Moreover, this guide helps to increase awareness of the IEPF and its role in protecting the interests of investors. Educating shareholders about the fund and its functions helps promote investor awareness and protection. It can lead to increased investor confidence in the Indian capital market.
• In addition, this guide emphasises the importance of following the correct procedure and submitting accurate information and documents, which can help to reduce the likelihood of delays or rejections in the claim process. Seeking professional help or guidance from a chartered accountant or a company secretary can ensure a smooth and hassle-free claim process.
• Knowing how to claim shares from IEPF involves protecting and empowering shareholders, promoting investor awareness and protection, and reducing delays or rejections in the claim process.

The process to be followed

To claim shares from IEPF, the shareholder needs to follow these steps:

• Check Eligibility: The first step is to check whether the shareholder can claim the shares and check the list of eligible shareholders on the IEPF website.
• Download the IEPF-5 Form: If a shareholder claims the shares, download the IEPF-5 form from the IEPF website.
• Fill out the Form: The shareholder must fill out the form with accurate and up-to-date information, including all the details, bank details, and the shares of a claim.
• Attach Required Documents: Attach all the required documents, such as proof of address, identity, proof of ownership of shares, and any other documents specified in the form.
• Submit the Form and Documents: Submit the filled-out form and the required documents to the nearest IEPF regional office within the specified timeline.
• Verification Process: After submitting the form and documents, the IEPF authority will verify the details and documents submitted by the shareholder.
• Transfer of Shares: Once the verification is completed, the IEPF authority will transfer the shares to the shareholder demat account or issue a refund of the value of the shares.

It is important to note that claiming shares from IEPF can be time-consuming and may require legal assistance in some cases. Therefore, professional help or guidance from a chartered accountant or company secretary is advisable to ensure a smooth and hassle-free claim process.

Conclusion

In conclusion, claiming shares from IEPF can be a complex process, but by following the steps outlined in this guide, eligible shareholders can successfully claim their shares from the fund. It is important to check eligibility, download the IEPF-5 form, fill it out accurately, attach all the required documents, and submit the form and documents to the nearest IEPF regional office within the specified timeline. After the verification process, the IEPF authority will transfer the shares to the shareholder’s demat account or issue a refund of the value of the shares. It is advisable to seek professional help or guidance from a chartered accountant or a company secretary to ensure a smooth and hassle-free claim process. By following the correct procedure and submitting accurate information and documents, shareholders can protect their investment interests and increase awareness of the IEPF and its role in protecting the interests of investors.

Also Read: What is the Process for Claiming Back Shares from Investor Education and Protection Fund (IEPF) Suspense Account?