Rules 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.
The IEPF Rules, 2016 are the working rules for unpaid and unclaimed amounts and shares that move to the Investor Education and Protection Fund. Rules 1 to 4 give the title, the definitions, a list of what is credited to the Fund and the rules for the Authority's accounts and audit. This article is as amended up to G.S.R. 733(E) dated 1 October 2025 (Form IEPF-5); the rule text is per the MCA e-book to G.S.R. 552(E) of 9 September 2024. Later amendments should be checked before you rely on it. For IEPF compliance, see our compliance advisory service.
The Authority administers the Fund. Credited to the Fund are the amounts in section 125(2)(a) to (n) of the Act, shares transferred under section 124(6), resultant benefits on those shares, grants and fees, income earned, and shares held under section 90(9) among others. The Authority keeps proper accounts, prepares an annual statement of accounts and is audited annually with the accounts certified by the Comptroller and Auditor-General of India and laid before Parliament.
Rule 1: short title, extent and commencement
The rules may be called the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016. They were notified on 5 September 2016 as G.S.R. 854(E), under section 125(1) to (4) and (8) to (11) and section 124(6) read with section 469, and came into force from 7 September 2016.
Rule 2: definitions
| Term | Meaning |
|---|---|
| "Authority" | The Investor Education and Protection Fund Authority constituted under section 125(5) |
| "Chairperson" | The chairperson of the Authority appointed under section 125(6) |
| "Company" | A company under section 2(20), including a "corresponding new bank" under the 1970 and 1980 Banking Companies Acts, the State Bank of India, a "subsidiary bank" under the 1959 State Bank of India (Subsidiary Bank) Act, any other entity required to transfer any fund to the IEPF under the Act or statute governing it, and any transferee company in respect of the assets and liabilities of a transferor company |
| "Corporate action" | Any action by the company relating to transfer of shares and all benefits accruing on such shares including bonus shares, split, consolidation, fraction shares etc., except a right issue to the Authority |
| "Existing IEPF" | The fund constituted under section 205C of the Companies Act, 1956 |
| "Fund" | The Investor Education and Protection Fund constituted under section 125 of the Act |
| "Investor" | A person who has committed money in shares, debentures, bonds or deposits under a scheme or plan of a company registered under the Act |
| "Member", "Section" | Member of the Authority under section 125(6); a section of the Act |
The definition of "Company" has been widened over time by the 2017 and 2019 amendments. The reference to the Companies Act, 1956 and to other old statutes is as printed.
Rule 3: the Fund
Rule 3(1). The Authority administers the Fund.
Rule 3(2): what is credited.
| Clause | Amount |
|---|---|
| (a) | All amounts payable as mentioned in section 125(2)(a) to (n) of the Act |
| (b) | All shares in accordance with section 124(6) |
| (c) | All resultant benefits arising out of shares held by the Authority under clause (b) |
| (d) | All grants, fees and charges received by the Authority under the rules |
| (e) | All sums received from other sources decided by the Central Government |
| (f) | All income earned by the Authority in any year |
| (fa) | All shares held by the Authority in accordance with the proviso to section 90(9) and all resultant benefits, without any restrictions (inserted 2021) |
| (g) | All amounts payable under the printed provisions of the Banking Companies Acts of 1970 and 1980 and the State Bank of India Acts |
| (h) | All other sums collected by the Authority as envisaged in the Act |
Rule 3(3). For term deposits and debentures of companies, due unpaid or unclaimed interest is transferred to the Fund along with the matured amount.
Rule 3(4): accounting channel. Money accruing under section 125(2) (except clause (g)) is deposited in the Consolidated Fund of India under the Major Head 0075, with the printed minor head, and with amounts deposited under section 205C of the 1956 Act is transferred to the Fund, a non-interest bearing Public Account termed the IEPF Fund, after Parliament's approval through an Appropriation Act. The rule goes on to give the heads of account for the amounts remitted by companies, grants and donations, transfers to the Fund account and budget provisions; those are for the Authority and the Ministry's accounting offices, not for companies.
Rule 4: accounts and audit
- 4(1). The Authority maintains proper accounts and other records as given in the Schedule and prepares an annual statement of accounts in the form specified by the Central Government in consultation with the Comptroller and Auditor-General of India. The form is dealt with in our article on the 2018 Annual Accounts and Annual Report Rules.
- 4(2). The accounts are audited annually by the Internal Audit Party of the office of the Chief Controller of Accounts and the Comptroller and Auditor-General of India; the audit expenditure is payable by the Authority to the CAG.
- 4(3). The CAG or his appointee has the rights and privileges in connection with the audit that the CAG generally has for Government accounts, including the right to demand books, accounts, vouchers and documents and to inspect the Authority's offices.
- 4(4). The accounts as certified by the CAG, with the audit report, are forwarded annually to the Central Government, which causes them to be laid before each House of Parliament.
Where every IEPF rule sits
| Rule or schedule | What it covers | Article |
|---|---|---|
| 1 to 4 | Definitions, the Fund, accounts and audit | This article |
| 5 | Statement of unpaid amounts, IEPF-1, IEPF-1A and IEPF-2 | Rule 5 |
| 6, "Rule 11A", "Rule 13A" | Transfer of shares after seven years, IEPF-4, as printed | Rule 6 |
| 6A | Shares transferred under section 90(9) | Rule 6A |
| 7 | Refund of shares and dividend in IEPF-5, and the nodal officer | Rule 7 |
| 8 to 12 and the Schedule entry | Power to direct payment, transfer of old IEPF, returns, protection, repeal | Rules 8-12 |
| Schedules I to IV | Registers, transmission documents, claim procedure | Schedules I-IV |
Rule 6A, "Rule 11A", "Rule 13A" and the four Schedules sit outside the numbered run of rules 1 to 12 and are read with them as the table shows. Our IEPF Rules guide and the IEPF compliance calendar give the practical overview.
A worked example
Pearl Foods Limited has unpaid dividend that has remained unclaimed. When the amount is due for transfer, it moves to the Fund under section 125(2) and rule 3(2)(a). It also holds a fixed deposit scheme: for a matured term deposit that nobody claimed, the unpaid interest goes to the Fund along with the matured amount under rule 3(3). If the company issues bonus shares on shares that the Authority holds, the bonus shares are "resultant benefits" credited under rule 3(2)(c). Separately, the Authority's own books are audited every year by the CAG's audit party, and the certified accounts go to Parliament.
Need help with IEPF compliance?
Companies handle unpaid dividends, shares and nodal officer duties year after year. Our compliance advisory team can map your IEPF obligations, prepare the statements and keep your records in order.
Key takeaways
- The Rules came into force on 7 September 2016; the Authority administers the Fund.
- The Fund receives section 125(2) amounts, shares under section 124(6), resultant benefits, grants, fees, income and section 90(9) shares.
- Unpaid interest on matured term deposits and debentures goes along with the matured amount.
- The Authority's accounts are audited annually and laid before Parliament.
- Rules 5 to 12 and the Schedules have their own articles.
Read next
- Rule 5: IEPF-1, IEPF-2 and the nodal officer
- Rule 6: transfer of shares to the IEPF
- IEPF Rules, 2016 guide
- Sections 124 and 125 of the Companies Act, 2013: IEPF
Disclaimer: Based on the Companies Act, 2013 rules (and the Companies (Auditor's Report) Order, 2020) named above as consolidated in the MCA e-book (consulted on 3 October 2026), with the later notifications the article names. Later amendments, fees, forms and the Companies Act, 2013 provisions referred to should be checked. This article is general information, not legal advice; check the official text before acting.