Rule 7 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.
Rule 7 is the claimant's route back to money and shares that have gone to the Investor Education and Protection Fund. The claim is made in Form IEPF-5, the company's Nodal Officer verifies it, and the Authority decides. 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. Form IEPF-5 was substituted by G.S.R. 733(E), in force from 6 October 2025, so the form on the portal is the one to use. Later amendments should be checked before you rely on it. For help with a claim or with verification, see our share transfer service.
The claimant files Form IEPF-5 online, with the fee specified by the Authority, and sends the original documents to the company's Nodal Officer. The company sends an online verification report within thirty days of receipt of the claim, and the Authority disposes of a verified claim within sixty days of receiving the report. Every company that has credited amounts or shares to the Fund must nominate a Nodal Officer, who must be a Director, Chief Financial Officer or Company Secretary.
Rule 7(1): who can claim, and how
Any person whose shares, unclaimed dividend, matured deposits or debentures, application money due for refund, fractional share proceeds or preference share redemption proceeds have been transferred to the Fund may claim:
- the shares, under the proviso to section 124(6); or
- a refund, under section 125(3)(a) or the proviso to section 125(3),
by submitting an online application in Form IEPF-5 on the Authority's website, with the fee specified by the Authority from time to time in consultation with the Central Government. The rule prints no amount. Our guide to filing Form IEPF-5 covers the practical steps.
Rule 7(2): transmission to the Nodal Officer
On submission, IEPF-5 is transmitted online to the Nodal Officer of the company for verification. The proviso requires the claimant to send to the Nodal Officer, at the registered office, the original physical share certificate, original bond, deposit certificate or debenture certificate, with an Indemnity Bond, Advance Receipts and any other document listed in IEPF-5, duly signed.
Rule 7(2A) and (2B): the Nodal Officer
| Provision | What it says |
|---|---|
| 7(2A) | Every company that must credit amounts or shares to the Fund, or has deposited the amount or transferred the shares, nominates a Nodal Officer, who is a Director, Chief Financial Officer or Company Secretary, for verifying claims and coordinating with the Authority |
| Provisos | The company may appoint one or more Deputy Nodal Officers; the Nodal Officer is solely liable for all actions of a Deputy; if the company fails to appoint a Nodal Officer, every director is deemed to be the nodal officer and liable for any failure to comply with the rules |
| 7(2B) | The Nodal Officer's and Deputy's details are communicated to the Authority in Form IEPF-2, and the company displays the Nodal Officer's name and e-mail ID on its website |
| 7(2B) proviso | A change in the Nodal Officer or his details is communicated through IEPF-2 within seven days of the change, with the Board resolution |
Rule 7(3): the verification report
The company must, within thirty days from the date of receipt of the claim, send an online verification report to the Authority in the specified format, with scanned copies of the claimant's documents certified by its Nodal Officer, including both sides of the original certificate, duly cancelled and certified.
- Late report. If the report is not sent within thirty days, the company may send it by paying an additional fee of fifty rupees for every day, subject to a maximum of two thousand and five hundred rupees.
- Originals. The company must keep them and produce them when required.
- Rejection risk. If the Authority does not receive the report with documents within sixty days of filing IEPF-5, it may reject the form after sending a communication to the claimant and the company asking for a response within fifteen days.
- Penalty. For failure to submit the verification report in accordance with the rules, the company and its Nodal Officer are punishable as per the Act.
The Explanation to sub-rule (3) covers lost certificates: the company and the claimant follow the Share Capital and Debentures Rules, 2014, the SEBI listing regulations and Schedule III. The company is solely responsible for collecting the originals and liable for any misuse. See our article on claiming shares when the certificates are lost and our article on Schedules I to IV.
Rule 7(4) to (7): decision, timing and defects
- 7(4). After verifying entitlement: for amounts, the Authority's Drawing and Disbursement Officer presents a bill to the Pay and Accounts Office; for shares, the Authority issues a refund sanction order with the approval of the Competent Authority and credits the shares to the claimant's DEMAT account, to the extent of the entitlement.
- 7(5). The Authority notes the payments in its records.
- 7(6). A claim duly verified by the company is disposed of within sixty days from receipt of the verification report, complete in all respects. Any delay beyond sixty days is recorded in writing with reasons and communicated to the claimant.
- 7(7). If the Authority needs more information or finds the application defective, it informs the claimant and the company by e-mail, and they must respond within fifteen days, failing which the Authority may reject the claim. The company files a revised verification report, or answers an Authority query, within thirty days.
Rule 7(8), (9) and (11): heirs, other securities and liability
- 7(8). A claimant who is a legal heir, successor, administrator or nominee of the registered shareholder submits self-attested scanned copies of the documents in Schedule II with IEPF-5; for lost physical securities, additional documents in Schedule III; and sends the originals, signed, to the Nodal Officer.
- 7(9). For a legal heir or nominee of any other registered security, or a transfer or transmission request received after the transfer to the Authority, the company verifies the documents and issues a letter of entitlement, copied to the Authority through its e-verification report.
- 7(11)(a). The company is liable to indemnify the Authority in any dispute or lawsuit due to any incongruity or inconsistency in the verification report; the Authority does not indemnify the security holder or the company.
- 7(11)(b) and (c). A fraudulent claim is deemed fraud within the meaning of section 447 of the Act, and a person who deceitfully personates an owner of any security, share warrant or coupon is punishable under sections 57, 447 and 448 of the Act.
A worked example
Mrs. Radha Menon files IEPF-5 online for shares and dividend that went to the Fund and sends the originals and an Indemnity Bond to the Nodal Officer of Harvest Foods Limited. The company's Company Secretary, its Nodal Officer, sends the verification report within thirty days of receipt. The Authority then decides within sixty days of receiving the report and credits the shares to her DEMAT account.
For the transfer side, see rule 6; shares under rule 6A cannot be claimed back.
Need help with an IEPF claim?
Claims fail on missing originals, late verification or an unregistered Nodal Officer. Our share transfer team can prepare the claim, coordinate with the company's Nodal Officer and track the Authority's decision. For the company side, our guide to claiming shares back from the IEPF is a companion.
Key takeaways
- Claims go in Form IEPF-5 online with the Authority's specified fee, plus originals to the Nodal Officer.
- The company verifies within thirty days; a late report attracts fifty rupees a day up to two thousand five hundred.
- The Authority decides within sixty days of the verification report and may reject on silence after sixty days.
- Every company that credits amounts or shares must nominate a Nodal Officer, failing which every director is deemed one.
- Fraudulent claims are treated as fraud under section 447 of the Act.
Read next
- Rule 6: transfer of shares to the IEPF
- Schedules I to IV: registers, transmission documents and claim procedure
- How to file Form IEPF-5
- Claiming IEPF shares when physical share certificates are lost
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.