IEPF
IEPF Authority
The Companies Act, 2013, further enhanced the provisions related to the IEPF and expanded its scope. Under the new legislation, unclaimed dividends, matured deposits, and other amounts are transferred to the IEPF Authority, which acts as the custodian of these funds.
The IEPF Authority is responsible for administering the fund and utilizing it for the benefit of investors. It aims to promote investor awareness, education, and protection through various initiatives, including dissemination of information, conducting investor awareness programs, and implementing measures to prevent fraudulent activities in the securities market.
IEPF Functionalities -
IEPF Authority
- Prior to 2017, a regulatory provision mandated the transfer of unpaid and unclaimed dividends, which remained unclaimed for a period of 7 years from the date of declaration, to a dedicated account held by the Investor Education and Protection Fund (IEPF).
- With effect from September 2017, a significant amendment was implemented, expanding the scope of unclaimed shares beyond unclaimed dividends. Under this amendment, shares on which dividends have remained unclaimed for a continuous period of seven years are now also classified as unclaimed shares. Accordingly, if the dividends on such shares remain unclaimed for the specified duration, they are mandated to be transferred to the Investor Education and Protection Fund (IEPF) account.
- Shares issued as bonus shares or split shares within the last 7 years will not be transferred to the Investor Education and Protection Fund (IEPF) account if the associated dividends have not been unclaimed for the specified duration. This applies even if the original shares are subject to transfer to the IEPF due to unclaimed dividends. For instance, Reliance Industries Ltd.’s 2017 bonus shares will remain with their owners until 2024, while unclaimed dividends on the original shares may be transferred to the IEPF after 7 years.
- During the transfer of shares, a procedure involving the cancellation of old shares and the issuance of new shares, known as the transmission of shares, takes place. Subsequently, these shares are dematerialized and held by the Investor Education and Protection Fund (IEPF). However, complications arise when attempting to claim lost shares under such circumstances, particularly concerning the issuance of duplicate shares for cancelled shares that have been transferred to the IEPF. Presently, there is a pending need for clarification from the IEPF regarding this matter. Consequently, the process of claiming shares and navigating the IEPF proves to be intricate and complex.
To know more: Visit the Official Investor Education and Protection Fund (IEPF) website- Home (iepf.gov.in)
Feel free to contact us at enquiry@claimmyshares.com or call us on +91 83290-77612 / +91 77700-19721 for assistance.