You may want to know or recover your shares transferred to IEPF. This process is very confusing for many investors because dealing with unclaimed or unpaid shares and dividends is a hard job. Fortunately, there are some easy steps you can take to ensure that your shares have been moved to the Investor Education and Protection Fund (IEPF) account and what you should do to recover them. If your shares have been transferred, we will walk you through the steps and help you figure out how to get them back.
What is IEPF?
An investor protection fund was established by the Ministry of Corporate Affairs (MCA). Investors are the primary beneficiaries of the organization, in that management is on their unclaimed dividends, shares, and interest. If dividends remain unclaimed or shares are left unclaimed for a prolonged period, companies are required to transfer them to the IEPF. This ensures that investor assets are properly handled even when they are not actively claimed. Shares Transferred to IEPF are managed by the government to ensure their safe handling and proper distribution.
To work out the IEPF effectively, the Government of India established the Investor Education and Protection Fund Authority on 7th September 2016 under Section 125 of the Companies Act, 2013. The authority administers the fund, handles unclaimed assets in a proper manner, and even performs refunds to investors through shares, unclaimed dividends, matured deposits, debentures, etc., including shares Transferred to IEPF. It works towards spreading investor awareness and education by safeguarding the interests of the investors.
Why Do Shares Get Transferred to IEPF?
1. Shares are transferred to the Investor Education and Protection Fund (IEPF) when a company has not paid or the dividend has not been claimed for more than seven years.
2. If the dividend is not claimed within seven years, the company must transfer the unclaimed dividend and shares to the IEPF, along with any accumulated interest.
3. The company must submit details of the transfer to the IEPF Authority.
4. The purpose of IEPF is to ensure unclaimed shares are transferred to the rightful owner and protect investor interests.
5. The IEPF was established by the Ministry of Corporate Affairs (MCA) to effectively handle unclaimed assets.
6. Companies are required to hold onto dividends, deposits, share application money, and debentures for seven years.
7. After seven years, if claims are not made, the company must transfer these assets to the IEPF.
8. Shareholders can reclaim their unclaimed shares by applying to the IEPF Authority, which maintains records of such transfers.
9. To reclaim shares, shareholders must follow the procedure set by the IEPF Authority.
Steps to Check if Your Shares Have Been Transferred to IEPF
There are several ways to check if your shares transferred to IEPF. Let’s go through the steps you can follow:
Step 1: Visit the IEPF Website
To check if your shares have been transferred to the Investor Education Protection Fund (IEPF), you can:
1. Go to the IEPF website.
2. Select the Search option under the Claim Refund tab.
3. Use the search facility to look for your shares.
Step 2: Use the MCA Website
Another option is to visit the Ministry of Corporate Affairs (MCA) website. This site provides a comprehensive database of companies and their shareholder information.
1. Go to the MCA website.
2. Log in to the MCA portal.
3. Select MCA services
4. Select Company e-Filling
5. Navigate to the IEPF Services header.
6. Access the IEPF-5 Web Form-Claiming unpaid amounts & shares.
7. Fill out the application.
8. Submit the web form.
Step 3: Contact the Company’s Investor Relations Department
If you are unable to find the information online, the next step is to contact the company directly. Most companies have an investor relations department that can help you track the status of your shares. They can provide you with the necessary information and guide you on how to proceed if your shares have been transferred to IEPF.
Step 4: Check Your Demat Account
In case your shares are held in a demat account, you can also check with your depository participant (DP). A DP is an organization that facilitates the transfer of shares electronically. If any of your shares have been moved to the IEPF, they can let you know.
Step 5: Check Your Email or Notices from the Company
Companies are required to notify shareholders if their shares are about to be transferred to IEPF. This information is usually sent through email or post. Ensure that your contact details are up-to-date with the company to receive these important notices. If you’ve received any such communication, you can take action accordingly.
Read Also- What You Need to Know About Shares Moved to IEPF?
How to Claim Shares Transferred to IEPF
Don’t worry if you discover that your shares have been transferred to IEPF. You can recover them, but the process is a bit involved compared to the normal transfer process. The steps for reclaiming shares are as follows:
1. Fill out Form IEPF-5
- The IEPF-5 form can be downloaded and filled out on the official IEPF website.
- Provide details like your shareholding, the company’s name, personal identification information, folio number, and number of shares.
2. Prepare required documents
- Self-attested copy of PAN and Aadhaar cards
- Cancelled cheque leaf
- Client Master List (CML)
- Original certificates of shares and investments, or a copy of a transaction statement
- Copy of passport and OCI/PIO card for foreigners and NRI’s
3. Submit the form and documents
- Submit the filled IEPF-5 form and supporting documents online via the IEPF portal.
- Also, send the physical copies of these documents to the company’s nodal officer or R & T Agent (RTA).
4. Track the claim status
- Use the online IEPF portal to track the status of your claim
5. Receive shares
- Once the claim is verified and approved by the IEPF Authority, your shares will be credited back to your demat account within 60 days.
Conclusion
Checking your shares transferred to IEPF is an important job of any investor. With the above simple steps, you can check the status of your shares and proceed further accordingly. It means if your shares have been transferred, you can easily get them back by submitting the claim forms and attaching the necessary documents.
Share Claimers are ready to assist you if you need further assistance or have questions about your unclaimed shares. Get more information or start your claim process today by visiting our official website.
FAQs
Q1. How can I obtain the IEPF Form 5 online?
Ans: You will be able to get the IEPF Form 5 online at the official website of the Investor Education and Protection Fund Authority. To fill out and submit the form, find the “IEPF-5 Web Form” section and proceed according to it.
Q2. How can I recover my unclaimed shares?
Ans: You are expected to submit IEPF Form 5 along with the other documentation as a requirement in finding the unclaimed shares. The website of IEPF offers online access to this form. After submitting your claim, the said authority from IEPF will check on it and, upon approval, will start processing the shares returned to you.
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