Recovery of Shares from IEPF
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Our experts will gather all the vital information & prepare documentation.
Then, we will file the application.
Once the registration is completed, you will get recover your shares.
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Recovery of Shares
Recovery of Shares from IEPF is the process of reclaiming shares and dividends that have been transferred to the IEPF Authority by companies. This Usually happens when people own shares in a company but forget about them or don't claim their dividends (money paid to shareholders) for 7 years or more, the company has to transfer those shares and dividends to a government fund called the Investor Education and Protection Fund (IEPF).
The Companies Act 2013 founded the IEPF to regulate unclaimed shares, dividends, and other financial assets that firms transfer after a certain period of time. Many Indians buy in shares and either forget to claim them or let them expire before they may be claimed. So to resolve these problems, the Ministry of Corporate Affairs established the Investor Education & Protection Fund, or IEPF, to ensure that the right person could receive and transfer the unclaimed shares.
IEPF is also known for Investor Education and Protection Fund. The Indian government founded it to protect savings, shares, matured debentures, and unclaimed dividends. The IEPF Authority controls the management of the IEPF funds and keeps separate accounts and other relevant documents related to the funds. The IEPF Authority will only use and spend IEPF funds for the purposes which are described in the Act. The IEPF's financial statements will be audited by the Comptroller & Auditor-General of India. Every year, the Central Government of India will get the accounts and audit report from the Authority.
The Companies Act allows shareholders the authority to reclaim unclaimed shares from the IEPF under Section 124(6) or Section 125(3)(a). From the IEPF Authority, the shares can be claimed by the rightful owner, legal heir, nominee, or successor. The following people are eligible to apply for the recovery of shares or dividends from the IEPF Authority:
Claimants can start the share recovery process with IEPF, which provides a number of benefits such as recovering lost funds and guaranteeing legal ownership. Let's discuss the benefits of recovering shares from IEPF in more detail below:
1) Regains Lost Investments
You can reclaim shares or dividends that were transferred to IEPF due to inactivity for 7 years or more. This helps you recover your lost investments.
2) Access to Unclaimed Dividends
Not only shares, but you also get back all the dividends accumulated over the years, boosting your earnings.
3) Secure Process
The recovery process through Form IEPF-5 is transparent and regulated by the government, ensuring a safe way to get back your assets.
4) Improved Portfolio Management
Recovering shares helps you regain control over your investments, making it easier to manage and plan your financial portfolio.
5) Legal Rights Protection
It ensures your legal rights as a shareholder are protected, even if you forgot about your shares or dividends.
6) Corporate Benefits
Starting the share recovery process from IEPF gives claimants access to rights issues, bonus shares, and stock splits that might have been ignored during the share transfer period to IEPF.
7) Legal Compliance
By starting the recovery of shares process, Claimants save unnecessary legal complexities and delays by making sure compliance with regulatory requirements.
8) Tax Benefits
The IEPF share recovery process, claimants are able to improve their finances by claiming tax benefits on dividends and capital gains linked with the recovered shares.
Any shareholder may submit an application for recovery if their shares or dividends have been moved to the IEPF. Legal heirs, nominees, or successors of the original shareholder may apply if they are no longer alive by submitting the necessary paperwork, including the Death Certificate and Succession Certificate. A claimant is only permitted to submit a single, complete claim about a company throughout its financial year. The data from the different Folios from the same company should be included in the aggregated claim.
If the claimant is the registered shareholder's legal heir, nominee, or successor, they should wait to file an IEPF claim with the authorities until the company has finished the share transmission process and issued an entitlement letter.
To recover your shares or dividends from IEPF, you need to submit certain documents along with Form IEPF-5. Here’s a list of what you’ll need:
For Shareholders (If You Are the Shareholder):
1. Demat Account Statement OR
2. Client Master List (CML) certified by your Depository Participant (DP).
For Legal Heirs / Nominees / Successors (If Original Shareholder is Absent):
Share recovery from the IEPF is a step by step process that requires strict follow-up to the rules and documents. Here is a complete step by step process on share recovery from IEPF:
First, go to the IEPF official website. Download Form IEPF-5 from the 'Forms' section. This form is necessary for any unclaimed shares or dividends and this must be submitted.
Step 2: Fill Out Form IEPF-5
According to the instructions on the company's website, a completed application form and the necessary paperwork should be forwarded to the relevant company's nodal officer or R&T Agent (RTA). The nodal officer will validate your claim and send it to the IEPF authorities for processing. For future reference, kindly maintain a copy of every document you submitted.
Your submission is in the hold, the company or its RTA will review the information and verify that it was submitted correctly. In this step of verification, your given documentation is compared to the company's marked documentation. The time validation procedure can take place from a few days to a few weeks.
Once the application has been submitted, track the status of your request, make sure to use the reference number that is provided.
Within sixty days, the IEPF authority reviews and processes the claimant's request to recover shares. The procedure begins, When a company sends the authorities its verification report. After verifying the claimant's eligibility, the unclaimed shares are approved and credited to their Demat account by the Pay and Accounts Officer.
If you want to apply for Recovery of Shares from IEPF, Our shares recovery consultants are professionals. They have experience in handling the recovery of shares from IEPF.
