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