PROCEDURE TO CLAIM SHARES TRANSFERRED TO IEPF AUTHORITY
How to claim shares and dividend transferred to IEPF Authority?
PROCESS TO GET BACK SHARES FROM IEPF
PROCESS TO GET BACK SHARES FROM IEPF
Dear Reader,
In the previous article we understand the procedure for transfer of shares to the IEPF authority for which due date was deemed to be 31.10.2017 as per the IEPF (Second Amendment) Rules, 2017 as on 13.10.2017.
Here is the direct link for the same: Link for Previous article on IEPF.
After transfer of shares,now shareholder seeks the reason of transfer and wish to claim the same form the IEPF authority for which form is available on IEPF Website. Here is responsibility of the Company Secretary cum Nodal Officer of the Company to provide solution to the shareholders.
Hence we came with the detailed procedure to claim the shares and dividend from the IEPF authority and practical aspects of the same from the point of view of shareholder and the Company.
As you are aware, dividend declared by the Company is remitted either electronically to the designated bank account or by sending dividend warrant to the registered address of the shareholders.
Hence we came with the detailed procedure to claim the shares and dividend from the IEPF authority and practical aspects of the same from the point of view of shareholder and the Company.
As you are aware, dividend declared by the Company is remitted either electronically to the designated bank account or by sending dividend warrant to the registered address of the shareholders.
STATUTORY PROVISIONS:
As you are aware, dividend declared by the Company is remitted either electronically to the designated bank account or by sending dividend warrant to the registered address of the shareholders.
As per
Section 124(5) of the Companies Act, 2013, any dividend
remaining unpaid/unclaimed for a period of 7 (seven) years is required to be
transferred by the Company to the Investor Education and Protection Fund (IEPF)
established by the Central Government. The Company has regularly uploaded on
its website and also on the website of the Ministry of Corporate Affairs,
Government of India, full details of such unpaid or unclaimed dividends before
transferring to IEPF.
TRIGGER POINT OF
TRANSFER OF SHARES:
Further as per Section 124(6) read with Rule 6 of the Investor Protection
and Education Fund Authority (Accounting, Audit, Transfer and Refund) Rules,
2016, as amended from time to time, where the seven year period provided under
section 124(5) of the Companies Act, 2013 has been completed or being completed
during the period from 7th September, 2016 to 31st October, 2017, the due date
for transfer of such shares to IEPF Account shall be deemed to be 31st
October, 2017.
Therefore the provision of Transfer of shares to IEPF on the part of
Company executed on or after 31.10.2017 Link for Procedure for Transfer of
Shares to IEPF.
PROCEDURE ON THE PART OF SHAREHOLDER / CLAIMANT:
Hence concerned
shareholder/ claimant is required to claim the aforementioned
shares and dividend amounts from the Investor Education and Protection Fund
Authority by following the below mentioned procedure:
1)
Shareholder is required to Open a Demat Account
with NSDL/ CDSL as shares will be released by the IEPF Authority in favor of
claimants only in the Demat Account of the claimant. (ignore if already opened)
2) Download Form IEPF-5 from the website of IEPF (http://www.iepf.gov.in)
(Direct Link of Form IEPF-5)
Read the
instructions provided on the website/instruction kit along with the e-form
carefully before filling the form. (For your reference and easy perusal, click
on the link for the HELP KIT)
3) Fill the required fields of the Form and submit the duly filled
form by following the instructions given in the upload link on the website.
4) On successful uploading of Form on MCA Portal, an
acknowledgement will be generated indicating the SRN. Please note the SRN for
future tracking of the form.
5) Applicant has to send the attachments prescribed below to
Nodal Officer (IEPF) of the Company at its registered office in an envelope
marked “claim for refund from IEPF Authority” for initiating the verification
for claim
DOCUMENTS REQUIRED TO SUBMIT TO NODAL OFFICER OF THE RESPECTIVE COMPANY / RTA
a. Print out of duly
filled claim form with claimant signature.
b. Copy of
acknowledgement
c. Indemnity Bond (original)
with claimant signature (As per format given in Annexure II-Refer page 9 of
instruction kit) to be executed :
·
On 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 date, place and
Signature of claimant and witness. or
·
On a plain paper if the amount
claimed does not exceed Rs.10,000.
·
· In case of refund of shares, on a
non-judicial Stamp Paper of the value as prescribed under the Stamp Act.
d. Advance Stamped
receipt (original) with signature of claimant and two witnesses. (As
per format given in Annexure I, Refer page 8 of instruction kit)
e) Self attested copy of
PAN Card
f) Self attested copy
of Aadhaar Card (For Indian Nationals)
g) Proof of
entitlement (certificate of share/Interest warrant Application No. etc.)
h) Cancelled Cheque leaf
i) Copy of Passport, OCI
and PIO card in case of foreigners and NRI
j) Latest Client Master List
k) Transaction statement showing debit/transfer of shares to IEPF if shares
were held in Demat Form
l) Original Share Certificate
l) Letter from the RTA stating that claimant is entitle to such
number of shares and dividend.
6) In case of death of a shareholder, legal heir/claimant is also required to follow
the procedure of transmission of shares by sending the following documents
along with above documents:
(i) Require request letter for transmission of shares
duly signed by all deponents and mention full address, Contact no, Email ID
& Also full Bank details such as Bank name, Branch address, SB A/C
No. MICR No (9-digit code no.)
(ii) Affidavit
& Indemnity bond
(iii) Copy
of death certificate duly attested
(iv)
Legal heir certificate issued by competent authorities
(v)
Original share certificate
(vi) Signature
Verification Certificate
(vii) No objection certificate
(NOC) from all legal heirs who do not object to such transmission
(viii) For
value of securities more than Rs. 2,00,000 (Rupees Two lakh only) copy of
probated will / succession certificate/letter of administration (Hindi/English
version) duly
7) On receipt of
documents, completed in all aspects will be verified by the the Nodal
officer of the Company and on the basis of company's verification report
(Format given below), refund will be released by the IEPF Authority in favor of
claimants' Aadhaar linked bank account through electronic transfer and shares
in the Demat Account of the claimant.
Practical aspects of procedure to
claim shares and dividend from IEPF Authority:-
Step 1 :Shareholder/ Claimant will seek exact details of
Dividend and shares from the Registrar/ Company
Step 2 : Registrar/ Company will provide details and procedure as mentioned above
in reply to the letter and may issue Entitlement Letter
Step 3 : Shareholder needs to file the requisite from and follow the procedure
(For any professional help ping us at the undermentioned contact details)
Step 4 : After receipt of copy of filed
form and required documents from the shareholder, RTA/ Company will prepare a
verification report as per the latest format.
Step 5 : Submit the verification report duly signed
by the Nodal Officer of the Company to the IEPF authority through post within 15
days of receipt of the claim along with Excel sheets as enclosure with Eform
IEPF-1 & 4 highlighting the details of the claimant for the claim duly
attested by the nodal officer. ( i.e. attachment of IEPF-1/INV-1 & IEPF-4).
Step 6 : IEPF will verify the
details and refund will be released by the IEPF Authority in
favor of claimants' Aadhaar linked bank account through electronic transfer and
shares in the Demat Account of the claimant.
As per Rule 7(4) of IEPF
Rules, 2016
(a) After verification of the
entitlement of the claimant- (a) to the amount claimed, the Authority and then
Drawing and Disbursement Officer of the Authority shall present a bill to the
Pay and Accounts Office for e- payment as per the guidelines.
(b) to the shares claimed, the
Authority shall issue a refund sanction order with the approval of the
Competent Authority and shall either credit the shares which are lying with
depository participant in IEPF suspense account (name of the company) to the
demat account of the claimant to the extent of the claimant’s entitlement or in
case of the physical certificates, if any, cancel the duplicate certificate and
transfer the shares in favour of the claimant.
MOST IMPORTANT THINGS
TO BE NOTED:
The
verification report is as per the latest format prescribed by the Authority.
The revised proforma can be found at http://www.iepf.gov.in/IEPF/
Ø All the KYC documents of the applicant like PAN Card, Aadhar
Card are self-attested. Documents of all the holders are required in case of
joint holding.
Ø Advance Receipt and Indemnity Bond are duly stamped and details
of the witness are mentioned. Revenue stamp on the Advance receipt is duly
affixed.
Ø Proof of Entitlement (Original Certificate in case of matured
deposits/debentures/bonds and Share certificate in case of shares) is attached.
Ø Client-Master List of the applicant in case of shares is
attached.
Ø In case of claim related
to shares, RTA letter confirming the amount and no of shares transferred to
IEPF Authority is attached in case
Ø Non-liability clause is mentioned properly in the Verification
Report.
Ø Excel Sheets/Challans wherever applicable are duly attested and
attached with the dossier.
Ø For Proof of Entitlement:
o Dividend
warrant or self-attested copy of share certificate in case of claiming
Unpaid/Unclaimed Dividend.
o Original
share certificate & Letter from Registrar & Transfer Agent of company
duly verified by Nodal Officer for share & any Unpaid/ Unclaimed Dividend
transferred to IEPF. (in case share held in Physical form).
o Letter
from Registrar & Transfer Agent, if share held in Demat form for share and
Unpaid/ Unclaimed Dividend transferred of IEPF, duly verified by Nodal
Officer
o Letter
from Registrar & Transfer Agent is mandatory in every case of share &
dividend, duly verified by Nodal Officer.
o In
case of transmission/legal heir/successor/nominee, the applicant shall ensure
that the transmission process is completed before filing any claim as required
under Rule 7(8) of IEPF Rules, 2016. Further, the company shall issue a letter
of entitlement as per Rule 7(9) of IEPF Rules, 2016 in case the request for
transfer/transmission is received after transfer of shares to IEPF Authority.
DRAFT OF DOCUMENTS
(Application to the Authority for claiming unpaid
amounts and shares out of Investor Education and Protection Fund)
Annexure I Advance Receipt
Received from
the Investor Education and Protection Fund Authority the sum of Rs…………… and No.
of Shares ……………… being the amount and shares payable to me from the Investor
Education and Protection Fund as …………. (Dividend on Equity / Preference shares
/ matured deposits / matured debentures / application money due for refund /
interest accrued on……………………./Dividend credited to IEPF under Companies Act,
1956 or Companies Act, 2013/ Dividend credited to General Revenue Account under
Companies Act, 1956 / others, specify… )# which
was originally due from
M/s……………………………………………………………………..(Name of the Company)
Signature
of claimant with date
|
Signature of witness:
1. Signature
with date
Name
Address
Name
Address
2.
Signature with date
Name
Address
Name
Address
* Please
ensure to affix Revenue Stamp with crossed Signature to avoid delay in
processing of the claim
# Strike off whichever is not applicable
(Application to the Authority for claiming unpaid
amounts and shares out of Investor Education and Protection Fund)
Annexure II Indemnity Bond
To
The Investor
Education and Protection Fund Authority
………………………
In consideration of the payment of Rs .……………. and No. of shares…................... being the amount and shares due to me as ……………………
(Dividend on Equity / Preference shares / matured deposits / matured debentures / application money due for refund / interest
accrued on……………………./Dividend credited to IEPF under Companies Act, 1956 or
Companies Act, 2013/ Dividend credited to General Revenue Account under
Companies Act, 1956 / others, specify………….)# for
the Financial Year...................................... from M/s ……………………………………....(Name of the Company) out of the
Investor Education and Protection
Fund by
the Authority, I …………………………….son /daughter /wife# of………..…………………. do hereby agree
and undertake to indemnify the Investor Education and Protection Fund Authority
to the extent of any claim not exceeding the amount hereinbefore mentioned
which may be preferred against the Investor Education and Protection Fund
Authority, and which it has to lawfully discharge.
Signature
Date:
Place:
Place:
Witnesses:
Signature of witness:
1. Signature with date
Name
Address
Name
Address
2. Signature with date
Name
Address
* For ensuring timely processing of the claim, please ensure to
make all the entries
# Strike off whichever is not applicable
For COMPANY
Revised Proforma
For Verification Report (03.05.2018) & (19.07.2018)
Please go through the revised guidelines dated 19.07.2018 Click Here for Notification
Please tick
on appropriate box:
Original Claim 
Resubmitted Claim- Name of Company: ………. Limited
- Verification Report of claim made vide SRN No ……………… to IEPF Authority
1.
Name of the Applicant :
2.
Folio No/ DP
ID/ Client ID :
3.
Amount
claimed
:
4.
Type of
security :
Equity
5.
Period for
which the claim relates :
6.
Details of
challans through amount was deposited, with verified copy of challans and year
wise detail:-
Name of Claimant
|
SRN of form IEPF-1/ INV-1
|
Challan Number
|
Date
|
Amount of Refund
|
Total
|
Rs.
|
7.
Detail of
share transferred with verified copy of
year wise details :-
Name of Claimant
|
SRN of form IEPF-4
|
Date of transfer
|
Number of shares to be refunded
|
Type Of Shares
(Physical/Demat)
|
8.
Whether
claimant’s bank details tally
With the cancelled cheque leaf :
9.
Whether the
claimants Demat account
Details tally with Company record
………………………………………………….
10. Recommendation
If approved then:
(a)
Proposed
refund amount :
(b) Amount in Figures :
(c)
Proposed
number of share for refund :
If rejected, reason thereof:-
(a) Data Bank of company does not find the
name
of applicant as security holder
(b) Mismatch in Folio no./DP ID/ Client ID
(c) Signature mismatch
(d) Mismatch in nature of Security
(e) Any Litigation is pending (Give details)
(f) Incomplete documents (give Details)
(g) Duplicate claim made by applicant ( Give
details of earlier claim allowed)
(h) Any other reason:
Note: Mismatch of amount claimed is not a
reason of rejection.
Attachment with resubmitted cliam:
a) ..........
b) ..........
c) ..........
Non-Liability Clause
Attachment with resubmitted cliam:
a) ..........
b) ..........
c) ..........
Non-Liability Clause
-
The Company
shall be solely liable under all circumstances whatsoever to indemnify the IEPF
Authority in case of any dispute or lawsuit that may be initiated due to any incongruity
or inconsistency of disparity in the verification report or otherwise.
-
The IEPF
Authority shall not be liable to indemnify the security holder of Company for
any liability arising out of any discrepancy in verification report submitted
etc., leading to any litigation or complaint arising thereof.
Name of Nodal
Officer:
Signature :
Date :
Stamp:
Encl: Attachments as per notification dated 19.07.2018
RECTIFICATION OF INCORRECT DETAILS FILLED IN FORM IEPF-5
We encounter several cases where few details filled in Form IEPF-5 entered as wrong or in case we need to alter the details entered therein.
In such cases, MCA allows to rectify the defects by filing an additional Form on MCA portal.
The defects or incompleteness in any respect in this eForm as noticed shall be
placed on the Ministry's website (www.mca.gov.in).
In case the eForm is marked
as RSUB or PUCL, please resubmit the eForm or file Form GNL-4(Addendum),
respectively. Please track the status of your transaction at all times till it
is finally disposed off. (Please refer Rule 10 of the Companies (Registration
offices and Fees) Rules, 2014) It is compulsory to file Form GNL-4 (Addendum)
electronically within the due date whenever the document is put under PUCL,
failing which the system will treat the document as invalid and will not be
taken on record in accordance with Rule 10(4) of the Companies (Registration
offices and Fees) Rules, 2014
You may ping us on the below number for any help in filing of Form IEPF-5 for claim of shares/ dividend FREELY
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Ravi Garg
Company Secretary
91-7838204665,
csravi2014@gmail.com
