How to claim a dividend once it has gone to IEPF?

Long-term investors always look up to make higher profits with little to no risks. But, with a longer duration, comes the responsibility to upkeep the dividend. Some investors may feel astray and withdrawn when seeing the unclaimed or unpaid amount getting transferred to IEPF by the company. There is no need not to worry as the claimant can go up to the IEPF authority to fetch their refunds. The IEPF refers to the Investor Education and Protection Fund (IEPF) which is governed by the Ministry of HRD. It aims to promote investor’s awareness and protect the nature of interests of the investors. 

Recently, the IEPF authority mandates that investors/depositors or claimants whose due dividends have gone to IEPF can easily request a refund of it. As per the IEPF law, “any money as dividend can’t be claimed by the investor within 7 years and 37 days from the date of its declaration of dividend, it shall be transferred by the company along with interest accrued, if there is any, thereon to Investor Education and Protection Fund”. 

This law sheds light on the fact that if an investor has failed to claim the dividend of a share for 7 consecutive years or more will get transferred by the company. If you are one of those investors who have experienced a similar situation, then you need not worry. There is a way through which you can easily fetch the shares from IEPF. To claim such an amount, the claimant needs to file form IEPF-5 with the required documents.

Here is a complete step-by-step guide for the investors, depositors, or claimants to file the claim. Do ensure to carefully follow the guidelines in the said manner, if not tackled properly, you may incur problems in the filing.

1. Download Form and understand its instructions

First and foremost, you are required to download the IEPF-5 Form. It can be easily downloaded from the official website of Investor Education and Protection Fund Authority. Once downloaded, don’t haste to fill in the details, pay attention to it and go through each and every instruction carefully.

• Key in details in the Form

After giving instructions a read, fill in the required fields with genuine information and download and save it on your laptop/computer. Now, head on to submit the form by religiously following the instructions.

• Fetch Serial Number

Once, the form gets successfully uploaded, see the acknowledgment that appeared on the screen that will show the Serial number SRN. It is important to save the SRN as it will be required in the future.

• Take a Print Out

Do make sure to keep a printout of the IEPF-5 form as well as the acknowledgment or SRN for the same for your own record purpose.

• Submit Required Documents

After taking the printout, you are required to submit an original indemnity bond along with the enlisted set of documents:

1. Copy of Acknowledgment
2. Self-attested copy of e-form
3. Other requisite documents as listed in form IEPF-5 to Nodal Officer of company of company at its registered office.

Please Note:

• Make sure to submit an envelope marked as “Claimed for refund from IEPF Authority.”
• Carefully submit the necessary documents to company otherwise the refund process won’t be initiated.
• Wait for the claim!

After you have made all the required formalities, your claimed form is ended with all aspects which will be verified by a related company. The authorities would verify the attested files and documents, if found satisfactory, the refund will be released by the IEPF Authority in the favor of Claimant’s Aadhaar-linked bank via electronic transfer.