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Investor Education and Protection Fund (IEPF) has been established under provision of Section 125 of the Companies Act, 2013 with the objective to make refund of unclaimed shares and amounts like unpaid dividend and other unpaid amounts which have been transferred by companies to IEPF.

The fund is to be utilised to make refund to eligible claimants and to promote investor education, awareness and protection. The fund is maintained under consolidated fund of India.

The authority has been entrusted with the responsibility to make refunds of unclaimed dividends, mature deposits, mature debentures, etc and to conduct Investor Education and Awareness Programme.

As per section 125 of the Companies Act, 2013, the following amounts are credited to the Fund:

  • The amount given by the Central Government by way of grants after due appropriation made by Parliament by law in this behalf for being utilized for the purpose of the Fund.
  • Donations given to the Fund by the Central Government, State Governments, companies or any other institutions for the purposes of the fund
  • The amount in the unpaid Dividend Account of companies transferred to the Fund under sub-section (5) of section 124
  • The amount in the general revenue account of the central Government which had been transferred to that account under sub-section (5) of Section 205A of the Companies Act, 1956, as it stood immediately before commencement of the Companies (Amendment) Act, 1999, and remaining unpaid or unclaimed on the commencement of this Act
  • The amount lying in the Investor Education and Protection Fund under section 205C of the Companies Act, 1956
  • The interest or other income received out of investments made from the Fund
  • The amount received under sub-section (4) of section 38
  • The application money received by companies for allotment of any securities and due for refund
  • Matured deposits with companies other than banking companies
  • Matured debentures with companies
  • Interest accrued on the amount referred to in clauses (h) to (j)
  • Sale proceeds of fractional shares arising out of issuance of bonus shares, merger and amalgamation for seven or more year
  • Redemption amount of preference shares remaining unpaid or unclaimed for seven or more years and
  • Such other amount as may be prescribed: Provided that no such amount referred to in clause (h) to (j) shall from part of the Fund unless such amount has remained unclaimed for a period of seven years from the date it became due for payment.

As per provisions of the section 124(6) of the Companies Act, 2013, all shares in respect of which dividend has not been paid or claimed for seven consecutive years or more shall be transferred by the company in the DEMAT Account of IEPF Authority opened for the purpose.

As per the Section 125(3) of Companies Act, 2013, the fund shall be utilised for:

  • The refund in respect of unclaimed dividends, matured deposits, matured debentures, the application money due for refund and interest thereon
  • Promotion of investors’ education, awareness and protection
  • Distribution of any disgorged amount among eligible and identifiable applicants for shares or debentures, shareholders, debenture-holders or depositors who have suffered losses due to wrong actions by any person, in accordance with the orders made by the Court which had ordered disgorgement; Investor Education and Protection Fund.
  • Reimbursement of legal expenses incurred in pursuing class action suits under section 37 and 245 by members, debenture-holders or depositors as may be sanctioned by the tribunal (Class Action Suit) and
  • Any other purpose incidental thereto, in accordance with rules as may be prescribed.
    Provided that the person whose amounts referred to in clauses (a) to (d) of sub-section (2) of section 205C transferred to Investor Education and Protection Fund, after the expiry of the period of seven years as per provisions of the Companies Act, 1956, shall be entitled to get refund out of the fund in respect of such claims in accordance with rules made under this section.

Any person claiming to be entitled to the amount referred in sub-section (2) may apply to the IEPF Authority for the payment of the money claimed.

For seeking refund, claimant is required to file e-form IEPF-5 online which is available on the website www.iepf.gov.in or www.iepfportal.in and submit the copy of filled e-form along with requisite documents to concerned company for verification. On receipt of documents from claimant, company is required to verify the same and furnish its verification report to the Authority recommending the acceptance or reject the refund claim with reasons there to. On the basis of verification report of the company, claims are processed in the Authority.

  • Print out of duly filled claim form with claimant signature and if joint holders are involved than claim Form to be signed by all joint holders.
  • Copy of acknowledgement.
  • Indemnity Bond (Original) with claimant signature.
  • Advance Stamped Receipt (Original)
  • In case of refund of matured deposit or debenture, or bonds, original certificate thereto.
  • Copy of AADHAR Card of the claimant and if joint holders are there, Copy of AADHAR Card of all joint holders.
  • Proof of Entitlement (Certificate of share/interest warrant Application No. etc.)
  • Original Cancelled Cheque Leaf.
  • Copy of Passport, OCI and PIO card in case of foreigners and NRI
  • Other optional document, (if any)
  • Copy of PAN Card.
  • Client Master List
  • Original Share Certificate (in case shares are in Physical Form)
  • In case Joint Holder is deceased, copy of Death certificate to be attached.

IEPF Authority has undertaken several awareness initiatives to create awareness among investors. These are:

  • Investors Awareness Programme (IAPs) are being conducted through professional Institutes viz. Institute of Chartered Accountants of India, Institute of Company Secretaries of India and Institute of Cost Accountants of India
  • CSC e-Governance Services India Limited, Ministry of Communications and IT (MeitY), is organising IAPs in rural areas through the common service centres on behalf of the Ministry since 2013-2014.
  • Informative crawlers on investor awareness are run on Doordarshan from time to time.
  • Jingles for creating awareness among potential investors are run on various FM and Vividh Bharti channels of All India radio.
  • Messages on investor awareness are sent to public across India through SMS. In the past, these SMS were sent through BSNL network.