HOW TO CLAIM SHARES AND DIVIDEND TRANSFERRED TO IEPF

AUTHORITY?

PROCESS TO GET BACK SHARES FROM IEPF

Dear Reader,
During the period of last 8-9 Months, we came across several cases, where a
General mass of people stand un-aware of their shareholding in the Company due to
several reasons. After getting information that their holding/investment may be
transferred to IEPF in dividend(s) were not claimed. They stand helpless regarding
the procedure to claim the same as filing of Form on IEPF website it is little tricky
from their point of view.
However soon Ministry may came with web-based claim Form which would be easier
as compare to current situation.
After transfer of shares, now shareholder seeks the reason of transfer and wish to
claim the same form the IEPF authority for which form is available on IEPF Website.
Here is responsibility of the Company Secretary cum Nodal Officer of the Company
to provide solution to the shareholders.
Hence we came with the detailed procedure to claim the shares and dividend from
the IEPF authority and practical aspects of the same from the point of view of
shareholder and the Company.
STATUTORY PROVISIONS:
As you are aware, dividend declared by the Company is remitted either electronically
to the designated bank account or by sending dividend warrant to the registered
address of the shareholders.
As per Section 124(5) of the Companies Act, 2013, any dividend remaining
unpaid/unclaimed for a period of 7 (seven) years is required to be transferred by the
Company to the Investor Education and Protection Fund (IEPF) established by
the Central Government. The Company has regularly uploaded on its website and
also on the website of the Ministry of Corporate Affairs, Government of India, full
details of such unpaid or unclaimed dividends before transferring to IEPF.
TRIGGER POINT OF TRANSFER OF SHARES:
Further as per Section 124(6) read with Rule 6 of the Investor Protection and
Education Fund Authority (Accounting, Audit, Transfer and Refund) Rules,
2016,as amended from time to time, where the seven year period provided under
section 124(5) of the Companies Act, 2013 has been completed or being completed
during the period from 7th September, 2016 to 31st October, 2017, the due date for
transfer of such shares to IEPF Account shall be deemed to be 31 st October, 2017.
Therefore the provision of Transfer of shares to IEPF on the part of Company
executed on or after 31.10.2017
PROCEDURE ON THE PART OF SHAREHOLDER / CLAIMANT:
 Hence concerned shareholder/ claimant is required to claim the aforementioned
shares and dividend amounts from the Investor Education and Protection
Fund Authority by following the below mentioned procedure:
1) Shareholder is required to Open a Demat Account with NSDL/ CDSL as shares
will be released by the IEPF Authority in favor of claimants only in the Demat
Account of the claimant. (ignore if already opened).
2) Download Form IEPF-5 from the website of IEPF (Direct Link of Form IEPF-5)
Read the instructions provided on the website/instruction kit along with the e-form
carefully before filling the form. (For your reference and easy perusal, click on
the link for the HELP KIT)
3) Fill the required fields of the Form and submit the duly filled form by following the
instructions given in the upload link on the website.
4) On successful uploading of Form on MCA Portal, an acknowledgement will be
generated indicating the SRN. Please note the SRN for future tracking of the form.
5) Applicant has to send the attachments prescribed below to Nodal Officer (IEPF)
of the Company at its registered office in an envelope marked “claim for refund from
IEPF Authority” for initiating the verification for claim
DOCUMENTS REQUIRED TO SUBMIT TO NODAL OFFICER OF THE
RESPECTIVE COMPANY / RTA
a. Print out of duly filled claim form with claimant signature.
b. Copy of acknowledgement
c. Indemnity Bond(original) with claimant signature (As per format given in
Annexure II-Refer page 9 of instruction kit) to be executed :
 On a non-judicial Stamp Paper of the value as prescribed under the Stamp Act
(according to state) if the amount of the claim is Rs.10, 000 or more. Please ensure
to enter date, place and Signature of claimant and witness. or
 On a plain paper if the amount claimed does not exceed Rs.10,000.
 In case of refund of shares, on a non-judicial Stamp Paper of the value as
prescribed under the Stamp Act.
d. Advance Stamped receipt (original) with signature of claimant and two
witnesses. (As per format given in Annexure I, Refer page 8 of instruction kit)
e) Self attested copy of PAN Card
f) Self attested copy of Aadhaar Card (For Indian Nationals)
g) Proof of entitlement (certificate of share/Interest warrant Application No. etc.)
h) Cancelled Cheque leaf
i) Copy of Passport, OCI and PIO card in case of foreigners and NRI
j) Latest Client Master List
k) Transaction statement showing debit/transfer of shares to IEPF if shares were
held in Demat Form`
l) Original Share Certificate
l) Letter from the RTA stating that claimant is entitle to such number of shares and
dividend.
6) In case of death of a shareholder, legal heir/claimant is also required to follow
the procedure of transmission of shares by sending the following documents along
with above documents: (Ref: Rule 7(4) of IEPF Rules, 2016)
(i) Require request letter for transmission of shares duly signed by all deponents and
mention full address, Contact no, Email ID & Also full Bank details such as Bank
name, Branch address, SB A/C No. MICR No (9-digit code no.)
(ii) Affidavit & Indemnity bond
(iii) Copy of death certificate duly attested
(iv) Legal heir certificate issued by competent authorities
(v) Original share certificate
(vi) Signature Verification Certificate
(vii) No objection certificate (NOC) from all legal heirs who do not object to such
transmission
(viii) For value of securities more than Rs. 2,00,000 (Rupees Two lakh only) copy of
probated will / succession certificate/letter of administration (Hindi/English version)
duly
7) On receipt of documents, completed in all aspects will be verified by the the Nodal
officer of the Company and on the basis of company’s verification report (Format
given below), refund will be released by the IEPF Authority in favor of claimants’
Aadhaar linked bank account through electronic transfer and shares in the Demat
Account of the claimant.
Practical aspects of procedure to claim shares and dividend from IEPF
Authority:-
Step 1 :Shareholder/ Claimant will seek exact details of Dividend and shares from
the Registrar/ Company
Step 2 : Registrar/ Company will provide details and procedure as mentioned above
in reply to the letter and may issue Entitlement Letter
Step 3 : Shareholder needs to file the requisite from and follow the procedure (For
any professional help ping us at the undermentioned contact details)
Step 4 : After receipt of copy of filed form and required documents from the
shareholder, RTA/ Company will prepare a verification report as per the latest
format.
Step 5 : Submit the verification report duly signed by the Nodal Officer of the
Company to the IEPF authority through post within 15 days of receipt of the claim
along with Excel sheets as enclosure with Eform IEPF-1 & 4 highlighting the details
of the claimant for the claim duly attested by the nodal officer. ( i.e. attachment of
IEPF-1/INV-1 & IEPF-4).
 Step 6 : IEPF will verify the details and refund will be released by the IEPF
Authority in favor of claimants’ Aadhaar linked bank account through electronic
transfer and shares in the Demat Account of the claimant.
As per Rule 7(4) of IEPF Rules, 2016
(a) After verification of the entitlement of the claimant- (a) to the amount claimed, the
Authority and then Drawing and Disbursement Officer of the Authority shall present a
bill to the Pay and Accounts Office for e- payment as per the guidelines.
(b) to the shares claimed, the Authority shall issue a refund sanction order with the
approval of the Competent Authority and shall either credit the shares which are
lying with depository participant in IEPF suspense account (name of the company) to
the demat account of the claimant to the extent of the claimant’s entitlement or in
case of the physical certificates, if any, cancel the duplicate certificate and transfer
the shares in favour of the claimant.
MOST IMPORTANT POINTS TO BE NOTED:
The verification report is as per the latest format prescribed by the Authority. The
revised proforma can be found
at http://www.iepf.gov.in/IEPF/pdf/RevisedProforma_03052018.pdf
 All the KYC documents of the applicant like PAN Card, Aadhar Card are self-
attested. Documents of all the holders are required in case of joint holding.
 Advance Receipt and Indemnity Bond are duly stamped and details of the witness
are mentioned. Revenue stamp on the Advance receipt is duly affixed.
 Proof of Entitlement (Original Certificate in case of matured
deposits/debentures/bonds and Share certificate in case of shares) is attached.
 Client-Master List of the applicant in case of shares is attached.
 In case of claim related to shares, RTA letter confirming the amount and no of
shares transferred to IEPF Authority is attached in case
 Non-liability clause is mentioned properly in the Verification Report.
 Excel Sheets/Challans wherever applicable are duly attested and attached with the
dossier.
For Proof of Entitlement:
 Dividend warrant or self-attested copy of share certificate in case of claiming
Unpaid/Unclaimed Dividend.
 Original share certificate & Letter from Registrar & Transfer Agent of company duly
verified by Nodal Officer for share & any Unpaid/ Unclaimed Dividend transferred to
IEPF. (in case share held in Physical form).
 Letter from Registrar & Transfer Agent, if share held in Demat form for share and
Unpaid/ Unclaimed Dividend transferred of IEPF, duly verified by Nodal Officer
 Letter from Registrar & Transfer Agent is mandatory in every case of share &
dividend, duly verified by Nodal Officer.
 In case of transmission/legal heir/successor/nominee, the applicant shall ensure that
the transmission process is completed before filing any claim as required under Rule
7(8) of IEPF Rules, 2016. Further, the company shall issue a letter of entitlement as
per Rule 7(9) of IEPF Rules, 2016 in case the request for transfer/transmission is
received after transfer of shares to IEPF Authority.
DRAFT OF DOCUMENTS
(Application to the Authority for claiming unpaid amounts and shares out of
Investor Education and Protection Fund)
Annexure I
Advance Receipt
Received from the Investor Education and Protection Fund Authority the sum of
Rs…………… and No. of Shares ……………… being the amount and shares
payable to me from the Investor Education and Protection Fund as ………….
(Dividend on Equity / Preference shares / matured deposits / matured debentures /
application money due for refund / interest accrued on……………………./Dividend
credited to IEPF under Companies Act, 1956 or Companies Act, 2013/ Dividend
credited to General Revenue Account under Companies Act, 1956 / others,
specify… )# which was originally due from
M/s……………………………………………………………………..(Name of the
Company)
Signature of claimant with date

Affix Revenue Stamp

Signature of witness:

1. Signature with date

Name
Address

2. Signature with date

Name
Address

* Please ensure to affix Revenue Stamp with crossed Signature to avoid delay in
processing of the claim
# Strike off whichever is not applicable
(Application to the Authority for claiming unpaid amounts and shares out of
Investor Education and Protection Fund)
Annexure II
Indemnity Bond
To
The Investor Education and Protection Fund Authority
………………………
In consideration of the payment of Rs .……………. and No. of shares…………………
.
being the amount and shares due to me as …………………… (Dividend on Equity /P
reference shares / matured deposits / matured debentures / application money due f
orrefund / interest accrued on……………………./Dividend credited to IEPF under
Companies Act, 1956 or Companies Act, 2013/ Dividend credited to General
Revenue Account under Companies Act, 1956 / others, specify………….)# for
the Financial Year……………………………….. from M/s
……………………………………….(Name of the Company) out of the Investor
Education and Protection Fund by the
Authority, I …………………………….son /daughter
/wife# of………..…………………. do hereby agree and undertake to indemnify the In
vestor Education and Protection Fund Authority to the extent of any claim not
exceeding the amount hereinbefore mentioned which may be preferred against the
Investor Education and Protection Fund Authority, and which it has to
lawfully discharge.
Signature
Date:
Place:
Witnesses:
Signature of witness:
1. Signature with date
Name
Address
2. Signature with date
Name
Address
* For ensuring timely processing of the claim, please ensure to make all the entries
# Strike off whichever is not applicable
For COMPANY
Revised Proforma For Verification Report (03.05.2018) & (19.07.2018)
Please go through the revised guidelines dated 19.07.2018 Click Here for
Notification
Please tick on appropriate box:
Original Claim Resubmitted Claim

– Name of Company: ………. Limited

– Verification Report of claim made vide SRN No ……………… to IEPF Authority

1. Name of the Applicant :

2. Folio No/ DP ID/ Client ID :
3. Amount claimed :
4. Type of security : Equity
5. Period for which the claim relates :
6. Details of challans through amount was deposited, with verified copy of
challans and year wise detail:-
Name of Claimant SRN of form IEPF-1/ Challan Date Amount of Refund
INV-1 Number

Total Rs.

7. Detail of share transferred with verified copy of year wise details :-

Name of SRN of form Date of transfer Number of Type Of Shares

Claimant IEPF-4 shares to be (Physical/Demat)
refunded

8. Whether claimant’s bank details tally

With the cancelled cheque leaf :
9. Whether the claimants Demat account
Details tally with Company
record ………………………………………………….
10. Recommendation
If approved then:
(a) Proposed refund amount :
(b) Amount in Figures :
(c) Proposed number of share for refund :
If rejected, reason thereof :-
(a) Data Bank of company does not find the name of applicant as security holder
(b) Mismatch in Folio no./DP ID/ Client ID
(c) Signature mismatch
(d) Mismatch in nature of Security
(e) Any Litigation is pending (Give details)
(f) Incomplete documents (give Details)
(g) Duplicate claim made by applicant ( Give details of earlier claim allowed)
(h) Any other reason:
Note: Mismatch of amount claimed is not a reason of rejection.
Attachment with resubmitted cliam:
a) ……….
b) ……….
c) ……….
Non-Liability Clause
– The Company shall be solely liable under all circumstances whatsoever to
indemnify the IEPF Authority in case of any dispute or lawsuit that may be initiated
due to any incongruity or inconsistency of disparity in the verification report or
otherwise.
– The IEPF Authority shall not be liable to indemnify the security holder of Company
for any liability arising out of any discrepancy in verification report submitted etc.,
leading to any litigation or complaint arising thereof.
Name of Nodal Officer:
Signature :
Date :
Stamp:
Encl: Attachments as per notification dated 19.07.2018
RECTIFICATION OF INCORRECT DETAILS FILLED IN FORM IEPF-5
We encounter several cases where few details filled in Form IEPF-5 entered as
wrong or in case we need to alter the details entered therein.
In such cases, MCA allows to rectify the defects by filing an additional Form on MCA
portal.
The defects or incompleteness in any respect in this eForm as noticed shall be
placed on the Ministry’s website (www.mca.gov.in).
In case the eForm is marked as RSUB or PUCL, please resubmit the eForm or file
Form GNL-4(Addendum), respectively. Please track the status of your transaction at
all times till it is finally disposed off. (Please refer Rule 10 of the Companies
(Registration offices and Fees) Rules, 2014) It is compulsory to file Form GNL-4
(Addendum) electronically within the due date whenever the document is put under
PUCL, failing which the system will treat the document as invalid and will not be
taken on record in accordance with Rule 10(4) of the Companies (Registration
offices and Fees) Rules, 2014