All about IEPF-5

Under the provisions of the Investor Education and Protection Fund Rules 2017, any amount transferred to the company’s Unpaid Dividend Account under Section 124(1) of the Companies Act. 2013 which is unpaid or unclaimed for more than 7 years from the date of declaration, the dividend will be transferred along with interest to the Investor Education and Protection Fund (IEPF). In favor of whom any share has been transferred to the IEPF may file an online application to the authority set up by the MCA to claim such amount in Form IEPF-5. In this article, we will discuss all about the IEPF-5.

What is IEPF-5?

IEPF-5 is an application filed with the Investor Education and Protection Authority. It is filed to claim unpaid dividends and shares from the IEPF. According to section 125(2) (c) of the Companies Act 2013 (the “Act”), the company should transfer the amounts in its unpaid dividend account to the IEPF.

Shareholders of the company must submit the electronic form IEPF-5 following section 125 of the Act and rule 7 sub-rule 1 of the Investor Education and Protection of Investors (accounting, auditing, transfer, and refund), 2016, along with other necessary documents as may be specified to claim their unpaid dividend.

Investor Education and Protection Fund (IEPF)

The Investor Education and Protection Fund (IEPF) was established under Section 125 of the Companies Act, 2013by the Central government. It promotes investor awareness and protects the interests of investors.

• An individual whose unpaid amount has been transferred to the Investor Education and Protection Fund (IEPF) can apply for a refund from the IEPF office.
• The company shall submit a statement detailing such transfer in the prescribed format i.e. IEPF-5 to the IEPF and the authority shall issue a transfer certificate.
• In case of shares on which dividend has not been paid or demanded for more than 7 years continuously, the company shall transfer to IEPF by attaching a statement detailing the transfer by the company.

Who should file Form IEPF-5?

A shareholder of a company whose unclaimed or unpaid amount is transferred to the IEPF can apply for a refund of such amount to the IEPF using Form IEPF-5 on the MCA (Ministry of Corporate Affairs) portal.

Purpose of e-Form IEPF-5

Any amount has been transferred to the IEPF, to whom the funds are transferred, that person can claim by filling in Form IEPF-5 to the IEPF authority set up by the MCA who will further process the claim. The IEPF authority may seek required clarifications from the concerned company/bank.

Documents required for filing Form IEPF-5

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

• A copy of the duly completed IEPF-5 form and the confirmation generated after uploading the electronic IEPF-5 form with a unique SRN.
• Indemnity bond (original) signed by the plaintiff.
• Pre-stamped receipt (original) with the stamp and signature of the applicant and witnesses.
• Original bond/deposit/share certificate (if securities are held in physical form) or copy of transaction statement (if securities are held in demat form).
• Attested copy of Aadhaar card.
• Proof of claim (share certificate, interest order application number, etc.)
• Canceled check.
• Copy of Passport, Overseas Citizen of India (OCI), and Person of Indian Origin (PIO) card, in case of foreigners and NRIs.

Form IEPF-5 is to be submitted to the IEPF office after logging into the MCA portal. Form IEPF-5 helps shareholders of a company to recover their unpaid or unclaimed amounts.

The Procedure of Form IEPF-5 Application 

The procedure for submitting the IEPF-5 form online is as follows:

• Visit the IEPF website and click on “IEPF Web Form-5” to fill out the form on the MCA portal.
• After filling out the form online by logging into the MCA portal, save it to your computer.
• Upload the form by going to the IEPF website under the “Forms” tab.
• After successful upload, a confirmation with Service Request Number (SRN) will be generated.
• Print the completed IEPF-5 form and the confirmation generated after uploading the form.
• Submit the required documents to the Nodal Officer of the company at its registered office in the name of “Refund Application from IEPF”.
• The concerned company will verify the IEPF-5 form and send its report to the IEPF.
• The IEPF authority will check and verify documents and other transfers to the IEPF authority from the company.
• The IEPF office will release the refund to the Aadhaar-linked bank account.

Compliance after filling out the form

Submit the indemnity bond in original, a copy of the receipt, a self-attested copy of the e-form, and other documents as mentioned above to the Nodal Officer of IEPF of the company at its registered office in an envelope stating “Refund Application from IEPF Office”

Application forms will be verified by the relevant company and based on that report; the IEPF will release the refund to the applicants’ Aadhaar-linked bank account.

Final words

The IEPF-5 form is an important document for investors who have unclaimed shares or dividends for the last seven years. By filling out the IEPF-5 form, investors can claim their shares or dividends that have been transferred to the IEPF. Investors must ensure that they fill out the form correctly and submit all the necessary documents to avoid any delay in the claim process.