Mastering IEPF-5 Claims: A Comprehensive Guide

Investor Education and Protection Fund (IEPF) compliance is a critical responsibility for a Company Secretary. This guide simplifies the process of handling IEPF-5 claims, ensuring a smooth and compliant approach.

Why IEPF-5?

IEPF-5 is an e-filing form that enables claimants to apply for refunds of unpaid amounts or shares transferred to IEPF. It can be filed by:

The individual whose shares/amounts have been transferred.
A legal representative in case of a deceased claimant.

What Can Be Claimed?

Claimable Items	Description
Shares	Equities transferred to IEPF
Unclaimed Dividend	Dividends not claimed for seven consecutive years
Matured Deposits & Debentures	Fixed deposits, bonds transferred to IEPF
Application Money	Unused application funds for securities
Sale Proceeds of Fractional Shares	Revenue from fractional share sales
Redemption Proceeds	Proceeds from matured preference shares

E-Verification Report Timeline

As per Rule 7(3) of IEPF Rules, 2016:

The company must submit an online verification report within 30 days of receiving the claim.
The 30-day period starts only after the claimant submits postal receipt details.

Essential Verification Checks by the Company

Checkpoints	Details
Address Matching	Compare address in IEPF-5 with company records. If different, require an affidavit and proof.
Bank Details	Match with the canceled cheque submitted.
Demat Details	Verify with the CML copy.
Signature Verification	If mismatch occurs, require banker's verification.
Name Matching	Ensure name consistency with company records.

Illustrative List of Required Documents

Document	Purpose
Self-attested IEPF-5 Form	Basic claim form
Aadhar & PAN Card	Identity verification
Passport (for NRIs)	Proof of residency
Indemnity Bond	Legal safeguard
CML Copy	Demat verification
Transaction Statement	If shares held in demat form
Original Share Certificate	If shares were in physical form
Letter of Entitlement	Confirmation from the company
Cancelled Cheque	Bank verification
Proof of Document Acknowledgment	Confirmation of receipt
Court Decree/Order	If required for legal heir claims
Death Certificate (Notarized)	Required in case of deceased claimant

Company’s Role in Processing IEPF-5 Claims

The company/RTA issues an Entitlement Letter confirming the claimant's shares and dividends.
The claimant files Form IEPF-5 based on the entitlement letter.
The claimant sends supporting documents to the Nodal Officer for verification.
The company verifies the details and submits the E-Verification Report within 30 days.
If the verification report is not received within 60 days, the IEPF Authority may reject the claim.
If verified, the IEPF Authority:
- Processes the refund of money via the Pay and Accounts Office.
- Credits shares to the claimant’s Demat account.
The IEPF Authority processes verified claims within 60 days.
Delays beyond 60 days require written justification.

Handling Defective or Incomplete Forms

The Authority notifies the claimant and company via email.
The claimant must rectify and resubmit the form within 15 days.
The company must file a revised verification report within 30 days.

Important Amendment: Special Contingency Insurance Policy

IEPF (Accounting, Audit, Transfer, and Refund) Second Amendment Rules, 2024

Effective Date: 9th September 2024
Companies must purchase special contingency insurance to cover risks related to verification reports.

FAQs

How many claims can a claimant file per financial year?
- Only one consolidated claim per company per year is allowed.
What is the company’s liability in case of disputes?
- The company must indemnify the IEPF Authority against any legal disputes or inconsistencies in verification reports.
How do legal heirs claim shares?
- They must submit the required documents as per Schedule A.

Documents Required for Legal Heirs (Schedule A)

Situation	Required Documents
Single Holder (with nomination)	Death certificate, PAN, Share Certificate
Single Holder (without nomination)	Affidavit, Legal Heir Certificate/Succession Certificate, Indemnity Bond
Joint Holder (with nomination)	Death certificate, PAN, Share Certificate
Joint Holder (without nomination)	Affidavit, Succession Certificate, Indemnity Bond

Documents Required for Lost Securities (Schedule B)

Requirement	Details
FIR/Police Complaint	If market value > Rs 5,00,000
Indemnity Bond	Declaration of non-disposal
Newspaper Advertisement	If market value > Rs 5,00,000

This guide ensures that handling IEPF-5 claims is a structured and error-free process for both companies and claimants. Following these steps can significantly reduce compliance risks and ensure seamless refunds.

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Disclaimer: Every effort has been made to avoid errors or omissions in this material in spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition In no event the author shall be liable for any direct indirect, special or incidental damage resulting from or arising out of or in connection with the use of this information Many sources have been considered including Newspapers, Journals, Bare Acts, Case Materials , Charted Secretary, Research Papers etc.