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Process for Refund of IEPF Shares

Anshika

Learn the process for refund of IEPF shares to discover how investors reclaim shares or dividends transferred to the fund.

The Investor Education and Protection Fund (IEPF) is a statutory body created by the Government of India to manage unclaimed dividends, matured deposits, matured debentures, and shares that remain inactive for a long period. When shareholders do not claim their dividends for seven consecutive years, the corresponding shares are transferred to the IEPF Authority. However, these shares can be reclaimed by submitting the appropriate request and documentation.

What Are IEPF Shares

IEPF shares refer to equity shares transferred by a company to the Investor Education and Protection Fund Authority when dividends on those shares remain unclaimed for seven consecutive years. Once transferred, the shares, bonus shares, split shares, and dividend amounts related to them are held by the IEPF until the rightful owner or claimant submits a refund request.

IEPF shares ensure investor protection by centralising unclaimed assets and preventing misuse. Though the shares are transferred, the rightful owner retains full ownership and can claim them through a formal process.

Who Can Claim Refund of IEPF Shares

The following individuals may apply for the refund of IEPF-transferred shares:

  • Original shareholder whose shares were transferred

  • Legal heir of a deceased shareholder

  • Successor or administrator of the shareholder’s estate

  • Nominee registered with the company

  • Multiple legal heirs, with one acting as the claimant and others giving consent

Each category must provide appropriate supporting documents to establish their claim.

Process to Recover Shares from IEPF (Online & Offline)

Below is the complete, step-by-step process to claim IEPF shares:

1. Check details on the company website & IEPF portal

  • Visit your company’s website → “IEPF Details” section

  • Confirm that your shares/dividends are transferred to the IEPF

  • Visit the official IEPF website and verify details using your name, folio, or DP-ID

2. File online claim using Form IEPF-5

  • Visit the official IEPF portal

  • Fill Form IEPF-5 with details such as:

    • Personal information

    • Company name

    • Number of shares

    • Folio/DP-ID/Client-ID

    • Aadhar & PAN details

  • Upload supporting documents

  • Submit and download the acknowledgement

3. Send documents to the Nodal Officer of the company

  • Take a printout of the IEPF-5 form and acknowledgement

  • Attach self-attested copies of all documents

  • Courier the package to the Nodal Officer/Deputy Nodal Officer of the company

4. Company verification

  • The company verifies your documents

  • If documents are correct, the company issues a Verification Report to IEPFA

  • If any issues arise, the Nodal Officer will contact you for clarification

5. IEPF Authority processing

  • Once the verification report is received, IEPFA initiates processing

  • IEPF Authority may request additional documents if required

6. Refund approval & share transfer

  • After approval:

    • Shares are credited to your Demat account, or

    • Refund amount (if claiming unclaimed dividend) is credited to your bank account

Documents Required for IEPF Share Refund

Here are the documents commonly required for an IEPF share refund:

  • Acknowledgement of Form IEPF-5

  • Self-attested PAN & Aadhaar

  • Original share certificate (for physical shares)

  • Client Master List (CML) from your DP

  • Cancelled cheque with printed name

  • Proof of entitlement (dividend warrants, transaction statements, etc.)

  • Death certificate (if claiming as heir)

  • Succession certificate / legal heir certificate / probate (where applicable)

  • Passport-size photographs

  • Any additional document requested by the company or IEPFA

Timeline & Key Milestones in Refund Process

Here are the important details:

  • Filing IEPF-5: Immediate

  • Sending documents to Nodal Officer: Within 7 days of filing

  • Company verification: 30 days (may vary)

  • IEPFA verification & approval: 60 days after company report

  • Share credit/refund: Within 30 days after approval

Total estimated time: 3–4 months (may extend if documents are incomplete or discrepancies arise).

Common Mistakes & Rejection Triggers

Here are the common mistakes and issues that often lead to IEPF refund rejections:

  • Name mismatch between documents and share records

  • Wrong or incomplete supporting documents

  • Signature mismatch

  • Incorrect bank or Demat details

  • Missing legal heir documents

  • Multiple heirs applying without consent letters

  • Not responding on time to company or IEPF queries

These errors may result in delays or claim rejection, avoiding these may ensure a smoother processing.

Conclusion & Takeaways

Recovering shares or dividends from the IEPF is fully possible, provided the correct procedure and documentation are followed. The process includes filing Form IEPF-5, verifying details with the company’s Nodal Officer, and securing approval from the IEPF Authority. Following the correct procedure and submitting required documents allows shareholders and heirs to submit claims to reclaim their shares.

Disclaimer

This content is for informational purposes only and the same should not be construed as investment advice. Bajaj Finserv Direct Limited shall not be liable or responsible for any investment decision that you may take based on this content.

FAQs

What exactly is the IEPF-5 form?

The IEPF-5 form is the official online application used to claim unclaimed dividends, matured deposits, matured debentures, or shares that have been transferred to the Investor Education and Protection Fund (IEPF) Authority.

What happens if the entitlement letter is not received?

If the entitlement letter is not received, the claimant should contact the company’s designated Nodal Officer without delay. The entitlement letter is mandatory for completing the verification and refund process.

What should be done if an IEPF claim is rejected?

If an IEPF claim is rejected, a revised application can be filed after rectifying the errors and attaching the required documents. In certain situations, additional legal documents or clarifications from the company may be necessary to support the resubmission.

Hi! I’m Anshika
Financial Content Specialist

Anshika brings 7+ years of experience in stock market operations, project management, and investment banking processes. She has led cross-functional initiatives and managed the delivery of digital investment portals. Backed by industry certifications, she holds a strong foundation in financial operations. With deep expertise in capital markets, she connects strategy with execution, ensuring compliance to deliver impact. 

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