IEPF Form 5 - Procedure to Claim Unpaid Amounts & Shares

IEPF Form 5 is an application for investors seeking to claim unpaid dividends and shares from the Investor Education and Protection Fund (IEPF). Managed by the IEPF Authority under Section 205C of the Companies Act, 1956, this form ensures that unclaimed amounts from a company's unpaid dividend account are transferred to the IEPF. Investors need to submit Form IEPF-5 according to Section 125(3)(a) of the Act and Rule 7(1) of the IEPF Authority Rules, 2016, along with required documents. IEPF form 5 online filing can be streamlined by accessing the MCA portal, navigating to "IEPF Services", submitting the web form, sending supporting documents and tracking the claim with the generated SRN. This article explains the IEPF Form 5 and the application process in detail.

Investor Education and Protection Funds (IEPF)

The Central Government established the Investor Education and Protection Fund (IEPF) to advance investor awareness and safeguard investor interests. Under Section 124(5) of the Act, amounts in a company’s unpaid dividend account that remain unpaid or unclaimed by shareholders for seven years are transferred to the IEPF, including any accrued interest. Section 124(6) of the Act, 2013, requires that the company transfer to the IEPF shares with unclaimed or unpaid dividends for seven years. Section 125(3)(a) also allows investors to claim refunds for unpaid dividends, matured deposits, and matured debentures transferred to the IEPF. The Central Government established the ‘Investor Education and Protection Fund’, which credits the following amounts.

Unpaid dividends from companies or banks
Application money for securities, due for refund
Matured deposits
Matured debentures
Interest on matured deposits, debentures, or application money
Sale proceeds from fractional shares
Redemption amount of preference shares
Grants and donations
Dividend on shares transferred to IEPF
Proceeds from delisting of companies or banks related to transferred shares
Proceeds from the winding up of companies or banks related to transferred shares
Surrendered shares under Section 236 of The Companies Act, 2013

What is IEPF Form 5?

Form No. IEPF-5 is designed to simplify the process of filing applications with the IEPF Authority to claim unpaid amounts and shares from the Investor Education and Protection Fund (IEPF). Individuals who have had amounts transferred to the IEPF can submit their claims by filing the IEPF-5 form with the IEPF Authority, established by the Ministry of Corporate Affairs (MCA). A legal representative of a deceased person can also submit this application. During the processing of the application, the IEPF Authority may seek necessary clarifications from the concerned company or bank to ensure the accuracy and validity of the claim.

Documents Required for IEPF Form 5

Documents that are required to be submitted along with the Form IEPF-5 are as follows:

Print out of duly filled and uploaded claim form IEPF-5; with claimant signature and if joint holders are involved then the Form should be signed by all the joint holders
Copy of acknowledgment generated after uploading the claim Form IEPF-5
Indemnity Bond (original) with claimant signature to be executed
A non-judicial Stamp Paper of the value as prescribed under the Stamp Act (According to state) if the amount of the claim is Rs.10, 000 or more. Please ensure to enter the date, place, and Signature of the claimant and witness.
On plain paper, if the amount claimed does not exceed Rs.10, 000.
In case of a refund of shares, a non-judicial Stamp Paper of the value as prescribed under the Stamp Act
Advance Stamped receipt (original) with the signature of the claimant and two witnesses.
In case of a refund of matured deposit or debenture, or bonds, or where shares (in physical form) are claimed original certificate thereto
Copy of Aadhaar Card of the claimant and if joint holders are there, Copy of Aadhaar card of all the joint holders
Proof of entitlement (certificate of share, Interest warrant, dividend warrant and Application Number, etc.)
Original Cancelled Cheque leaf
Copy of Passport, OCI, and PIO card in case of foreigners and NRI
Copy of PAN Card (mandatory in case of a claim for shares)
Client Master List of De-mat A/c of the claimant
In case any Joint holder is deceased, a copy of the Death certificate is to be attached.

Procedure to Submit the Form No. IEPF-5

Here is the step-by-step procedure to submit the IEPF Form 5 on the MCA Portal,

Access the MCA Portal: Visit the Ministry of Company Affairs (MCA) homepage.
Login and Navigate: Login to the MCA portal using your valid credentials. Once logged in, navigate to the "MCA Services" section. Within "MCA Services," select "Company e-Filling."
Finding the IEPF Services: Look for a section titled "IEPF Services" or something similar.
Accessing the IEPF-5 Web Form: Under "IEPF Services," click on "IEPF-5 Web Form-Claiming unpaid amounts & shares."
Filling Out the Application: This section takes you to the online IEPF Form 5. Carefully fill out the application form with accurate details regarding your unclaimed investment claim.
Saving and Submitting (Optional & Mandatory): You can save the partially completed form as a draft for later edits. Once all information is filled in, proceed to submit the web form.
Receiving Your SRN: Upon successful submission, a unique Serial Reference Number (SRN) will be generated. Keep this number handy for future communication with the MCA.
Downloading Documents: The system will likely generate an acknowledgement receipt and an indemnity bond for you to download.
Informing the Company/Bank: The IEPF may initiate communication regarding your claim with the concerned company/bank. However, keeping them informed about your application filed through the IEPF-5 web form is recommended.
Sending Supporting Documents: You must send the IEPF authority physical copies of supporting documents such as share certificates, bank statements, proof of identity, and proof of address.
Tracking Your Claim: You can submit a postal receipt for dispatched documents and track the progress of your claim using the generated SRN on the MCA portal.
E-Verification: Your claim requires an electronic verification process to confirm its validity. Companies will file it via the IEPF-5 e-verification form.

Here's an IEPF 5 Form for your reference,

The process to be followed after filling the form

Submit the indemnity bond in an original copy of the acknowledgement and self-attested copy of the e-form along with the other documents as mentioned above 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 claim forms completed in all aspects, and based on the company's verification report, a refund will be released by the IEPF Authority in favour of the claimants' Aadhaar-linked bank account through electronic transfer.