Claim Shares Back explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
To claim shares and dividend back from the IEPF, file Form IEPF-5 online, send the printed claim with indemnity bond, KYC and share proofs to the company's Nodal Officer, who verifies and submits a report to the IEPF Authority within 30 days; the Authority then refunds the shares and amount, usually within about 60 days.
Overview
When dividends and shares stay unclaimed for seven years they are transferred to the Investor Education and Protection Fund. The law does not extinguish the owner's right — it merely parks the assets. Form IEPF-5, under the IEPF Authority (Accounting, Audit, Transfer and Refund) Rules, 2016, is the mechanism through which the rightful owner recovers those shares and dividends.
When It Is Required & Legal Basis
Section 124(6) proviso and the IEPF Rules allow any person whose shares or unpaid dividend have been transferred to the Fund to claim a refund. The claimant files a single consolidated application per company, supported by proof of entitlement, and the company acts as the verifier before the IEPF Authority releases the refund.
Step-by-Step Process
- File IEPF-5 online. Register on the IEPF portal and submit Form IEPF-5 with claimant, company and shares/dividend details, and note the SRN.
- Print and sign. Print the acknowledgement and the claim form, sign it, and prepare the indemnity bond and advance receipt.
- Assemble documents. Attach original share certificate (or demat transaction statement), self-attested PAN and Aadhaar, cancelled cheque, and client master list.
- Send to Nodal Officer. Courier the physical set to the company's IEPF Nodal Officer at the registered office.
- Company verification. The company verifies the claim and files an e-verification report with the IEPF Authority within 30 days.
- Refund. The IEPF Authority processes the report and credits the shares to the claimant's demat account and the dividend to the bank account.
Forms, Attachments & Fees
| Form / Document | Purpose | Timeline |
|---|---|---|
| IEPF-5 | Online refund claim | Anytime after transfer |
| Indemnity bond + advance receipt | Support the claim | With physical set |
| Company verification report | Company certifies entitlement | Within 30 days of receipt |
No MCA fee is levied on IEPF-5; the claimant bears notarisation, stamp and courier costs only.
Timeline & Due Dates
The claimant may file at any time. The company must submit its verification report within 30 days of receiving the physical documents. The IEPF Authority typically releases the refund within about 60 days of that report.
Penalty for Delay / Non-compliance
There is no penalty on the claimant. However, if a company delays or fails to submit its verification report, it is in default under Section 124(7), attracting a penalty of ₹1 lakh (plus ₹500/day, up to ₹10 lakh) on the company and ₹25,000 (plus ₹100/day, up to ₹2 lakh) on each officer in default.
Practical Tips
- Match the claimant's name and signature exactly with company records — mismatches are the top rejection reason.
- Complete demat and KYC before filing so the refund can be credited electronically.
- Keep the SRN and courier tracking; follow up with the Nodal Officer after 30 days.
- For deceased holders, add succession/transmission proof (will, succession certificate or legal-heir certificate).