How To Check Shares Transferred To IEPF?

Overview

After SEBI regulations enforced compulsory dematerialization of shares and other securities in 2008, there have been several instances where the shareholders had failed to claim their shares or amounts lying as dividends owing to them being lost or forgotten or neglecting transmission of shares from the original shareholder to his legal beneficiary. This has forced the system to build a digitalized mechanism for the recovery of shares in India. Therefore, the Ministry of Corporate Affairs (MCA) and the Investor Education and Protection Fund (IEPF) have been accountable for protecting investor rights and addressing such issues by spreading awareness about their rights.

Furthermore, the IEPF also gathers dividends of the AMCs of share applications, debentures, deposits matured, etc., which have remained unclaimed for long. If you are wondering how to check whether your shares have been transferred to IEPF, then this is the ultimate guide for you.

Obligation to Transfer Shares and Unclaimed Dividend

According to Section 124 of the Companies Act 2013 and the IEPF Rules 2016, if a shareholder has not claimed their shares or any unpaid sum in the dividend account that has not been requested for seven continuous years, it becomes obligatory for the company to transfer the shares and the dividend sum to the IEPF authority. Following this, the IEPF will issue a proof of transfer. The Ministry of Corporate Affairs (MCA) introduced the Investor Education and Protection Fund (IEPF) to streamline the claim process and enable a smooth transition of shares from IEPF to the rightful owner.

How to Check Shares Transferred to the IEPF?

Check with Your Company’s Website

If your shares have been lying unclaimed for a long time, you can start the process by contacting the company secretary or nodal officer of the respective company to regain claim rights on such shares. The company may request certain documents to verify the authenticity of the claim, and will issue a valid claim entitlement letter. For instance, the Infosys Ltd. website portal has a dedicated section for unclaimed shares. However, if the company has been merged with another entity, seek information related to the merged entity through the Registrar and Transfer Agent (RTA) and check the status of unclaimed shares on their website.

File a Claim with the IEPF Authority

1. Complete the User Registration process by signing into the MCA website, navigating to "Investor Services," and filing the form IEPF-5 by providing the required information and necessary attachments. Once done, click submit, after which a Service Request Number will be generated.
2. Take a printout of the submitted form, then send it along with the acknowledgment form generated and the indemnity bond, as well as other claim supporting documents, to the registered office of the company in a sealed cover.
3. The company will carry out a verification process upon receipt of the printout form and online request, and will submit an e-verification report to the IEPF authority within 30 days of receiving the claim, as per Rule 7(3) of the IEPF Rules, 2016. The concerned company is then obligated to authenticate the claim and coordinate with the Authority regarding the same.
4. Upon successful verification, the IEPF authority may transfer the shares and the dividend to the Demat account and the sum to the concerned bank account within 30-60 days.

Documents Required to Check Transfer of Shares

• Information regarding the Name of the Company, its CIN, Registered Address, and details of the Nodal Officer.
• Information related to the unclaimed shares.
• Document to prove clear title of shares and dividend.
• Documents to prove identification and the address of the shareholder.
• Bank Account and Demat A/c Details of the claimant. In case shares are presented by physical certificates, then the duplicate certificates will be canceled, and the claimant is supposed to receive the shares.
• Original Death Certificate and Notarized Affidavit to effectuate the claim made by legal heir/nominee due to the death of the original shareholder.

Conclusion

Companies often have a dedicated section listing shareholders who haven’t claimed their shares or dividends, making it easier for shareholders or their legal beneficiaries to check transfers made to the IEPF. However, if such a section is not available, it is advisable to contact the nodal officer of the company to seek details. In cases where the title of the claim is unclear due to discrepancies in the shareholder’s name or PAN details, or errors in identification proof, the process may be challenging and time-consuming. To expedite the recovery of shares, it is crucial to ensure that the shareholder has documents related to the clear title of the shares and to undertake proper follow-up with both the company and the IEPF authorities. If you still have any queries or require assistance, contact BizFoc, which has years of professional experience in the recovery of shares.