IEPF-5

IEPF-5 is the application made to the Investor Education and Protection Fund (IEPF) Authority for claiming unpaid dividends and shares out of the IEPF. Under Section 125(2)(c) of the Companies Act, 2013 (‘Act’), the company should transfer the amounts in its unpaid dividend account to the IEPF.

The shareholders of the company need to file e-Form IEPF-5 under Section 125(3)(a) of the Act and Rule 7(1) of the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016, along with other requisite documents, as may be specified from time to time,  to claim their unpaid dividend amount transferred to the IEPF. 

Investor Education and Protection Fund (IEPF)

The Central Government has established the Investor Education and Protection Fund. The IEPF promotes investor awareness and protects the interests of the investors. Under Section 124(5) of the Act, the amount transferred to the unpaid dividend account of a company that remains unpaid or unclaimed by a shareholder for seven years will be transferred along with interest accrued to the IEPF.

Section 124(6) of the Act, 2013 provides that all shares for which the dividend is unclaimed or unpaid for seven consecutive years shall be transferred to the IEFP by the company. Section 125(3)(a) of the Act provides that the shareholders of the unpaid dividend or matured deposits, or matured debentures can claim a refund of the unpaid amount transferred to the IEPF.

Rule 7(1) of the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 provides that a shareholder whose: 

• Unclaimed dividend, 
• Shares, 
• Matured debentures, 
• Matured deposits, 
• Application money due for refund, 
• Interest on sale proceeds of fractional shares, 
• Redemption proceeds of preference shares, etc., 

has been transferred by the company to the IEPF, can claim the refund of these amounts by applying the Form IEPF-5 to the IEPF Authority online along with the prescribed fees decided by the IEPF Authority periodically in consultation with the Central Government.

Who Should File Form IEPF-5?

The shareholder of a company whose unclaimed or unpaid amount is transferred to the IEPF can claim the refund of such amount from the IEPF Authority by applying form IEPF-5 on the MCA (Ministry of Corporate Affairs) portal. 

Form IEPF-5 Application Procedure

The process for applying Form IEPF-5 online is as follows:

• Visit the IEPF website and click on the ‘Web Form IEPF-5’ to fill the form on the MCA portal. 
• After filing the form online by logging into the MCA portal, save it on your computer.
• Upload the form by going to the IEPF website and clicking on the ‘Upload eForms’ option under the ‘Forms’ tab. 
• On successful uploading, an acknowledgement is generated having the Service Request Number (SRN).
• Take a printout of the filled Form IEPF-5 and the acknowledgement generated after uploading the form.
• Submit the required documents to the Nodal Officer (IEPF) of the company at its registered office in an envelope marked ‘Claim for a refund from IEPF Authority’.
• The concerned company will verify the form IEPF-5 and send its report to the IEPF. 
• The IEPF Authority will examine the completeness of documents and credit transfers from the company into the IEPF Authority.
• The IEPF Authority will release the refund in favour of claimants’ Aadhaar linked bank account through electronic transfer.

Documents Required for Filing Form IEPF-5

The required documents to be submitted along with the Form IEPF-5 are as follows:

• Copy of the duly filled form IEPF-5 and the acknowledgement generated after uploading e-Form IEPF -5 having the unique SRN.
• Indemnity Bond (original) with claimant signature.
• Advance stamped receipt (original) with revenue stamp and signature of claimant and witnesses.
• Original matured debenture/deposit /share certificate (when securities are held in physical form) or copy of transaction statement (when securities are held in Demat form).
• Self-attested copy of Aadhaar card.
• Proof of entitlement. i.e. certificate of share, interest warrant application number, etc.
• Cancelled cheque.
• Copy of passport, Overseas Citizen of India (OCI) and Person Of Indian Origin (PIO) card, in case of foreigners and NRI. 

The shareholders whose unpaid or unclaimed amounts are transferred to the IEPF can claim a refund of such amounts by filing the form IEPF-5. The form IEPF-5 needs to be applied to the IEPF Authority by logging into the MCA portal. The form IEPF-5 helps the shareholders of a company to get back their unpaid or unclaimed amounts.

Disclaimer: The materials provided herein are solely for information purposes. No attorney-client relationship is created when you access or use the site or the materials. The information presented on this site does not constitute legal or professional advice and should not be relied upon for such purposes or used as a substitute for legal advice from an attorney licensed in your state.