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News18
05-08-2025
- Business
- News18
Claims For Unclaimed Shares & Dividend To Get Simpler With IEPFA's New Integrated Portal
Last Updated: IEPFA is finalizing its Integrated Portal to streamline claim processes. It urges timely data submission and reviews low-value claim documentation. The Investor Education and Protection Fund Authority (IEPFA) is in the final phase of testing its Integrated Portal, a unified digital platform designed to streamline claim processes and enhance accessibility for both investors and companies. The portal will integrate key stakeholders—including depositories and the Public Financial Management System (PFMS)—to provide a seamless and efficient experience. To ensure the accuracy of data submitted by companies and enable smooth claim processing, public notices under Rule 1(A) have been published on the official IEPFA website. These notices urge companies that have not yet uploaded their IEPF-1/7 SRNs along with the prescribed Excel template to complete the process at the earliest. Timely compliance is crucial for uninterrupted claim processing. In parallel, IEPFA is undertaking a comprehensive review of documentation requirements for low-value claims, with the aim of introducing a simplified and faster claim settlement approach. Additionally, to strengthen its grievance redressal system, IEPFA is launching an Integrated Call Center that will offer more efficient, responsive, and stakeholder-friendly communication. While these technological and procedural upgrades are being implemented, minor temporary disruptions may occur. IEPFA sincerely regrets any inconvenience and seeks the continued cooperation of stakeholders as it works towards building a more robust and investor-centric ecosystem. About IEPFA The Investor Education and Protection Fund Authority (IEPFA), functioning under the Ministry of Corporate Affairs, Government of India, is dedicated to safeguarding investor interests by facilitating the return of unclaimed shares and dividends and advancing financial literacy nationwide. Through flagship initiatives such as Niveshak Didi, Niveshak Panchayat, and Niveshak Shivir, IEPFA empowers individuals to make informed financial choices and fosters a financially aware citizenry. view comments First Published: Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.


Mint
17-06-2025
- Business
- Mint
Unclaimed shares: A step-by-step guide for the claim and recovery process
NEW DELHI : You are cleaning your house and find some documents suggesting your father had bought shares in a company. You think the shares must be worth a great amount, but you are clueless about how to proceed. Notably, if dividends remain unclaimed for seven consecutive years, they, along with associated shares, go to the Investor Education and Protection Fund Authority (IEPFA), a government body appointed to help people recover their unclaimed shares and dividends. The first step is to get an entitlement letter from the company whose shares you hold before you contact the IEPFA. This document details the number of shares and dividends that have been transferred to the IEPFA and acts as proof that those shares and dividends belong to you. How to get an entitlement letter Step 1: Figure out if the document is a physical share certificate or something else. If it's a share certificate, you just need to reach out to the company to complete the know-your-customer (KYC) process. If it's not a share certificate, you will need a duplicate share certificate. This, too, requires reaching out to the company. Also Read: Trapped in bureaucracy: The ordeal of recovering unclaimed shares in India On the company website, under the investor relations tab, you will find details of its secretarial department or registrar transfer agent (RTA). 'Each company will have its own process for the IEPFA compliance. Some will have a shareholders' department in-house, others can extend it to RTAs. Figure it out by visiting the company website," said Ankit Garg, advocate and founder of Garg Law Chambers. Reach out to the secretarial department or RTA to get basic knowledge about the number of shares you hold, and then fulfil the KYC requirements. Once the company is sure about your identity, they will issue you the entitlement letter to claim shares from the IEPFA. 'This is where shareholders get frustrated the most because all the legwork happens at this stage. The company demands various documents at this stage," said Sumeet Goyal, co-founder, 3S Fintech Pvt. Ltd. Step 2: Log in to the ministry of corporate affairs' V3 portal. Visit the link and click on register. Once registered, you will be able to fill out the IEPF-5 Form. You will have to share personal details like your PAN and Aadhar, share and dividend details, demat, and bank account details. You also need to upload the entitlement letter. Your PAN and Aadhar number will be validated. Once the authentication is done, your claim will be submitted. Also Read: IEPFA's digital revamp targets faster claim approval Step 3: After the claim submission, an acknowledgement receipt and indemnity bond will be generated. Take note of your SRN (service request number) to track the status of your claim filing. You need to take a printout of the IEPF-5 Form, acknowledgement receipt, and the indemnity bond. Send these documents along with other supporting documents (as per the company's shared checklist) to the company's nodal officer. The nodal officer will verify whether the IEPF-5 Form and other documents are correct. The company will then send an e-verification report to the IEPFA, mentioning whether the claim form has been accepted or rejected. 'In many cases, companies reject it, and one may have to repeat the process all over again. Remember, you cannot reinitiate the process immediately. It is not possible until the IEPFA, too, rejects it. It takes some time," said Garg. 'One can check the status online by logging in to the MCA portal. Some companies send an email to shareholders after the verification report is sent to the IPEFA," Garg added. Remember, the company will retain all physical documents with itself, whether it approves the claim or rejects it. Step 4: After the company files a positive e-verification report, the IEPF authority scrutinises the claim documents again. It can reject the claim if it finds any discrepancy. If all documents are in order, the claim will go through various levels of approval within the IEPFA before it is approved. Once approved, shares and dividends are credited to the shareholder's demat and bank accounts. What the process should be As must be clear, the recovery process entails various levels of verification and a back and forth between companies, shareholders and the IEPFA. The process could be simplified. 'Shareholders creating a login on the MCA portal is not required. Companies have to maintain records with the MCA. Shareholders have nothing to do with them. Since most scrutiny happens by the company before issuing the entitlement letter, the second-level verification by the nodal officer of the company itself is unnecessary. The company should send the verification report to the IEPFA right after issuing the letter. Get the IEPFA Form-5 filled up at this stage itself," said Khagesh Chitlangiya, founder of Jeevantika Consultancy Services. Also Read: I-T department is cross-verifying claims in real time. You've been warned. Goyal said even if they have to maintain the entire process, they should work on cutting the timeline. 'After the letter is issued, it is just about filling up forms and an endless wait. Ideally, the IEPFA should approve or reject the claim after e-verification report in 30 days, but it takes over 365 days. The GM level verification takes forever. They should approve or reject cases within a stipulated time, or they should be given a target number of claims to be processed monthly," said Goyal. Further, Goyal added that transferring shares to the demat accounts should be done within 15 days, but it may take anywhere between 2 and 6 months. Slashing steps can help in reducing the waiting period, making it less taxing for shareholders and their families.


India Gazette
01-06-2025
- Business
- India Gazette
IEPFA and SEBI launch first Niveshak Shivir in Pune to empower investors and resolve unclaimed dividends
New Delhi [India], June 1 (ANI): The Investor Education and Protection Fund Authority (IEPFA), under the Ministry of Corporate Affairs, in collaboration with the Securities and Exchange Board of India (SEBI), successfully launched the pilot chapter of Niveshak Shivir in Pune on Sunday. The initiative is a part of IEPFA's continued mission to empower investors and strengthen financial literacy. The event marked a significant step in facilitating direct engagement with investors and addressing unresolved financial claims, according to the Ministry of Corporate Affairs. In line with IEPFA's broader investor outreach initiatives, Niveshak Shivir was conceptualised to assist investors in resolving pending issues related to unclaimed dividends and shares, updating KYC and nomination details, and facilitating faster settlements of claims - all under one roof. Over 450 claimants participated enthusiastically in the event, which attracted investors and stakeholders from Pune and nearby regions. By bringing together representatives from MIIs (Market Infrastructure Institutions), Registrars and Transfer Agents (RTAs), Depositories and Depository participants, the event successfully created awareness of the processes, thereby ensuring a transparent and seamless awareness towards demat of physical shares, updating KYC and nomination and the processes of IEPF claim were demystified. Investors were guided through every step of the process by trained officials at nineteen dedicated kiosks. To further streamline the process, search facility was made available at the venue, enabling participants to quickly check whether they or their family members had held any unclaimed shares or dividends. Once verified, trained officials assisted claimants in accurately filling out the IEPF-5 form, ensuring a smooth and guided claim submission process. Anita Shah Akella, CEO of IEPFA and Joint Secretary, Ministry of Corporate Affairs, along with Ananth Narayan, whole time Member, SEBI, and other officials inaugurated a special investor guide brochure developed by NSDL titled 'Investor Guide to Claiming Unclaimed Shares and Dividends.' The brochure outlines, in simple language, the step-by-step process for reclaiming unclaimed dividends and shares through the IEPF portal, key documents required (such as PAN, Aadhaar, and Entitlement Letter), and tips for avoiding common reasons for claim rejections. This initiative is expected to further empower investors with the knowledge needed to effectively navigate the claim process. The Shivir is the first in a planned series of Niveshak Shivir events to be held in major cities with significant volumes of unclaimed investor funds. This reflects IEPFA's deep commitment to investor-centric governance and transparency. Citywise calendar of events of Niveshak Shivir would be rolled out based on the learnings of this pilot. The Government of India established the Investor Education and Protection Fund Authority (IEPFA) under the Ministry of Corporate Affairs. Its mandate is to promote investor awareness, ensure effective grievance redressal, and facilitate the recovery of unclaimed investments through accessible and user-friendly platforms. (ANI)


Mint
29-04-2025
- Business
- Mint
Top politicians and investors among those who've lost track of ₹90,000 crore of assets
To say the awareness around unclaimed assets is quite low would be a huge understatement. Taking into account unclaimed dividends and current market value of unclaimed shares, assets worth more than ₹ 90,000 crore are lying unclaimed with the Investor Education and Protection Fund Authority (IEPFA), according to data collected by Fee-Only Investment Advisors, a financial planning firm. Established in 2016 under the ministry of corporate affairs, IEPFA is a custodian of investors' funds that have not been claimed for more than seven years. Its job is to transfer these funds back to investors safely after verifying their identity. Also read: Why are health insurers sending private detectives to claimants' homes? Even Prime Minister Narendra Modi has unclaimed shares and dividends from the erstwhile Raymond Ltd. Of these, 288 shares and associated dividends are unclaimed, as per the ministry of corporate affairs' (MCA) portal, according to Ankit Garg, advocate and founder of Garg Law Chambers. Modi has another ₹ 4,032 in unclaimed Raymond dividends, IEPFA's database showed. These are scheduled to be in IEPFA's custody from 9 July, the authority's database showed. Details on the number of shares underlying these dividends is unavailable. An email sent to the Prime Minister's Office remained unanswered. IEPFA's database, available on its website can be used to look up investors' unclaimed shares. Three search methods are available: Find your unclaimed investments by entering basic information such as your name and location; Search using your PAN; Enter the company's name or your demat ID and folio number. IEPFA data also showed that union minister of communications Jyotiraditya Scindia has 6,000 unclaimed shares of HDFC Bank with a market value of more than ₹ 1 crore, and dividends worth ₹ 2 lakh. Veteran stock market investors Vijay Kedia, Madhusudan Kela and Radhakishan Damani also have unclaimed shares and dividends from multiple companies, as do former solicitor general of India Harish Salve and Piramal Group chairman Ajay Piramal. Kedia, however, said that he has already recovered all shares and dividends. "I got it done for Glycol 6 months ago, ITC 1 year ago, and Somany Ceramics , 2 years ago," Kedia said. This suggests the IEPFA database may not be updated since it still shows shares and dividends pending unclaimed for Kedia. "The data comes to IEPFA through the MCA-21 portal. It is updated in company filings though," said an IEPFA spokesperson. IEPFA has been struggling with applications that have already been filed, and has faced criticism for its slow procedures and lack of transparency. The authority has yet to release its annual report for 2023-24. The IEPFA spokesperson said that the report will be out only after it is placed in the winter session of Parliament. Also read: Why Marcellus's Saurabh Mukherjea has 40% global weight The 2022-23 annual report estimates that ₹ 120 crore worth of shares were lying unclaimed as of March 2023. An IEPFA official told Mint in September that only 1% of this amount had been released. The IEPFA website shows it is currently handling applications filed in August 2023 in the 'other than senior citizen' category—a backlog of 21 months. For senior citizens (above 75 years), it is currently reviewing applications filed in December 2024. Meanwhile, a much-anticipated integrated portal that will digitise the claims process—which was originally scheduled for launch in February 2024. "Once it goes live, a lot of the manual work we currently do will be digitised, significantly reducing the time required to approve claims. The portal's launch is expected by August 2025," the IEPFA spokesperson said. Also read: When math mistakes cost more than money 'More than two crore shareholders are awaiting updates on their applications. Of these, 70-80% have assets with a market value of less than ₹ 5 lakh," said Khagesh Chitlangiya, founder of Jeevantika Consultancy Services. "While IEPFA has taken some welcome measures to ease the claims process, extended delays at their end make the whole effort futile. We see no visible improvement at the ground level." Mint reported earlier this month that to reduce IEPFA's burden, the government planned to work closely with businesses and market players such as share transfer agents to find the rightful owners of unclaimed assets so that the money could be transferred directly to them from the company itself before it flowed to IEPF.