How to claim shares from IEPF || When Shareholder is Alive || Physical shares transferred to IEPF

When shareholders fail to claim their dividends for a continuous period of seven years, the corresponding shares, along with the unclaimed dividends, are transferred to the Investor Education and Protection Fund (IEPF). This transfer is mandated by the Indian government to ensure that unclaimed funds are

properly managed. However, if you are the original shareholder (i.e., still alive) and wish to reclaim your shares from the IEPF, this detailed guide will help you navigate the process effectively.

Step 1: Establishing Eligibility and Initial Coordination with the Company

Before you can start the claim process, it's essential to confirm your eligibility as the rightful owner of the shares. Over time, shareholders may lose touch with the company, often resulting in missing or outdated Know Your Customer (KYC) details. As per the Securities and Exchange Board of India (SEBI) guidelines, it is mandatory for every shareholder to keep their KYC details, such as Aadhaar card, PAN card, bank account details, and nominee information, up to date with the company’s Registrar and Transfer Agent (RTA).

1.1 Initial Contact with the Company:

 The first step involves establishing contact with the company’s Registrar or the Nodal Officer responsible for handling IEPF claims. You can do this via email or by sending a physical letter. The purpose of this communication is to notify the company of your intent to reclaim the shares and to assert your ownership. In your communication, include the following documents to support your claim:

• Aadhaar Card: This serves as your primary identification proof.

• PAN Card: This is required for tax purposes and verification.

• Cancelled Cheque: This provides your bank account details for the transfer of funds.

• Original Share Certificates or Transaction Statements: These documents prove your ownership of the shares.

• Any Additional Proof of Ownership: This might include dividend cheques, warrants, or any other document issued by the company that contains the Folio Number or your name as the shareholder.

1.2 Filing Necessary Forms:

 At this initial stage, the company may require you to fill out specific forms to update your KYC details or to confirm your eligibility. These forms must be filled out physically and sent to the company via registered post. The most common forms include:

• ISR 1: Used for registering or changing PAN and KYC details with the company.

• ISR 2: Requires your bank to confirm your signature as the securities holder.

• ISR 3: A declaration form if you choose to opt out of nomination.

• ISR 4: Request form for the issuance of a duplicate certificate or other service requests.

• SH 13: The standard form for registering a nominee.

• SH 14: Used for canceling an existing nomination.

• ISR 5: Annexure C, used for requesting the transmission of securities by a nominee or legal heir.

• Annexure D: Individual affidavits provided by all legal heirs or those named in legal documents like a Will, Succession Certificate, or Legal Heirship Certificate.

• Annexure E: A bond of indemnity to be jointly furnished by all legal heirs.

• Annexure F: No-Objection Certificate (NOC) from all legal heirs.

• Form A: An affidavit for the issuance of duplicate securities in case the original ones are lost.

• Form B: An indemnity bond for the issuance of duplicate securities.

• These forms are essential, especially if there are legal heirs involved or if the original documents have been lost.

Step 2: Obtaining the Entitlement Letter from the Company

Once the company has verified your initial submission and confirmed your eligibility, they will issue an Entitlement Letter. This document is crucial as it formally acknowledges the details of the dividends and shares you are entitled to reclaim. The Entitlement Letter typically includes:

• Name of the Shareholder: Ensures the correct identification of the claimant.

• Registered Address: Confirms the current address on record.

• Folio Number or Demat Number: Identifies the specific account or holding related to the claim.

• Details of Unclaimed Dividends: Specifies the amount and period of the unclaimed dividends.

This letter serves as a key document for the next steps in the claim process.

Step 3: Filing the IEPF-5 Form Online

With the Entitlement Letter in hand, the next critical step is to file the IEPF-5 form online. This form is specifically designed for claiming unpaid dividends, matured deposits, debentures, or shares that have been transferred to the IEPF. Here’s how you can file the IEPF-5 form:

3.1 Register on the MCA V3 Portal:

 Create a User ID: Begin by registering on the MCA (Ministry of Corporate Affairs) V3 portal. During registration, you’ll need to select the appropriate role, such as ‘Investor’ or ‘Claimant.’

Log In: After successful registration, log into the MCA V3 portal.

3.2 Access the IEPF-5 Form:

Navigate to the Form: Once logged in, go to MCA Services -> Company Filing -> Investor Services -> IEPF 5 to access the IEPF-5 form.

3.3 Fill Out the IEPF-5 Form:

 Enter Required Details: Carefully fill in all the necessary information, including your personal details, shareholding information, and the details from the Entitlement Letter.

• Attach Required Documents: You will need to attach the following documents:

• Aadhaar Card: For identity verification.

• PAN Card: For tax identification and verification.

• Entitlement Letter: As issued by the company, confirming your eligibility.

• Client Master List: Provided by your depository, showing your current Demat account holdings.

• Cancelled Cheque: To verify your bank account details for the transfer of funds.

3.4 Submit the Form and Generate SRN:

• Submit the Form: After completing the form and attaching the necessary documents, submit the form online.

• Receive SRN: Upon successful submission, a Service Request Number (SRN) will be generated. This SRN is crucial for tracking your claim status. An acknowledgment will be sent to your registered email. Note that in the MCA V3 portal, the email copy of the acknowledgment is considered valid, as there is no separate acknowledgment document provided.

3.5 Download and Print Documents:

 IEPF-5 Form: After submission, download the completed IEPF-5 form.

Indemnity Bond: This bond is a guarantee against any future claims on the shares.

Advance Receipt: This is a receipt for the claimed amount, to be signed and returned.

3.6 Additional Documentation:

 If there is a discrepancy in your name or address, you will need to submit an affidavit to rectify the discrepancy. This affidavit should be prepared on a ₹20 stamp paper, and the wording should clearly state the nature of the discrepancy and the correct details.

3.7 Print the Indemnity Bond:

The Indemnity Bond needs to be printed on a stamp paper. The value of the stamp paper will vary depending on the value of the shares and the regulations of the state in which it is being executed.

3.8 Mailing the Documents:

 Place all the required documents, including the printed Indemnity Bond, Advance Receipt, KYC documents, and any affidavits, in an envelope. Label the envelope "Claim from IEPF" and send it to the company’s Nodal Officer via registered post or speed post. Retain the postal receipt, as it will be needed in the next step.

Step 4: Upload Postal Receipt and Track the Claim

After mailing the documents to the company, log back into the MCA V3 portal and upload the postal receipt. This step confirms that the physical documents have been sent and marks your form as "sent under processing."

4.1 Tracking the Claim:

 Using the SRN generated during the form submission, you can track the status of your claim on the IEPF portal. The tracking system will inform you whether your claim is under review, approved, or if any additional information is required.

Step 5: Company and IEPF Authority Processing

Once the company receives your documents, they will review them thoroughly. This review process involves:

• Verification of Documents: The company will check the accuracy and completeness of the documents submitted.

• Approval by the Company: If the documents are in order, the company will approve the claim internally and forward their approval to the IEPF Authority.

5.1 IEPF Authority Review:

 The IEPF Authority will then review the claim based on the verification report submitted by the company. If the IEPF Authority approves the claim, the shares or dividends will be credited back to your Demat account or bank account.

5.2 Processing Time:

 While there is no strict deadline for the IEPF Authority to complete the process, it generally takes up to six months from the time of submission. However, the timeframe may vary depending on the complexity of the claim and the completeness of the documentation provided.

Conclusion

Claiming shares from the IEPF can be a complex and time-consuming process, but by following the steps outlined in this guide and ensuring that all documentation is accurate and complete, you can significantly increase your chances of a successful claim. Regular communication with the company and diligent tracking of your claim status will help ensure a smoother process.