The Investor Education and Protection Fund plays a vital role in safeguarding unclaimed investments. Many investors are unaware that their shares, dividends, or other entitlements have been moved to the iepf without their knowledge. If you’ve come across a case where your shares are no longer in your demat account or you haven’t received a dividend in years, it’s possible your investments have been transferred to the iepf account. Here are the top five reasons why this happens and what you should know.
1. Unclaimed Dividends for 7 Consecutive Years
The most common reason for shares being transferred to the iepf is the non-claiming of dividends for seven consecutive years. According to the Companies Act, if any dividend declared by a company remains unpaid or unclaimed for a continuous period of seven years, the company must transfer the corresponding shares to the iepf. This leads to unclaimed dividend transfer to iepf and subsequently, the share transfer to iepf.
2. Inactive or Dormant Shareholder Accounts
Another major reason is inactive shareholder accounts. When investors do not update their address, contact details, or demat account information, companies are unable to deliver dividend payouts or notices. Over time, if no response or claim is made, the shares are moved to the iepf authority as per compliance filings like iepf 1 and iepf 2. This inactivity triggers the iepf shares recovery process for reclaiming ownership.
3. Physical Share Certificates Gone Missing
Many investors still hold physical share certificates which are often misplaced, damaged, or forgotten. In such cases, the investor may not claim dividends, and after the 7-year mark, the shares are automatically transferred to the iepf. This is especially common in legacy holdings or inherited portfolios, and often requires a detailed iepf claim to recover the investments.
4. Investor Deceased and No Legal Heir Claim Filed
When a shareholder passes away and the legal heirs do not actively claim the shares or dividends, the company continues to issue dividend warrants to the registered shareholder’s name. These go unclaimed and eventually the shares are transferred to the iepf. In such cases, the heirs must follow a proper iepf claim process to recover the shares through iepf form5 and verification from the concerned company.
5. Miscommunication or Non-Delivery of Notices
Sometimes, companies send dividend-related notices or reminders to outdated addresses. Due to relocation or poor record maintenance, the shareholder may not receive any communication. As a result, no claim is made within the 7-year window, and the company transfers the shares to iepf as per statutory rules such as iepf 4 and iepf 7.
What You Can Do
Start by checking the iepf unclaimed shares list using tools like iepf search by name or iepf unclaimed shares search. You can also use the iepf shares search option on the iepf website or mca iepf portal to see if your shares have been transferred. If they have, you need to file iepf 5 on www iepf gov in and submit physical documents for verification. Track your iepf srn status on the iepfportal and be mindful of any iepf srn status pending for approval.
How Rook Capital Helps
At Rook Capital, we simplify the recovery of shares from iepf. Our team assists in searching unclaimed shares, filing iepf form5, coordinating with companies, and ensuring smooth processing of your iepf refund. Whether you are dealing with reliance iepf or any other company, we guide you through every step of the claim. Let us help you recover your iepf unclaimed shares with ease and confidence.
