Established under the Companies Act, 2013, the IEPF (Investor Education Protection Fund) authority is an independent body. It protects the investors’ shares from misuse and loss in special cases. The Ministry of Corporate Affairs mandates that the dividends that remain unclaimed for more than 7 years. The company informs the IEPF authority, and they track the period of unclaimed shares. The procedure of claiming the shares back from the IEPF authority is lengthy and tedious. For the recovery of shares from IEPF, there is a procedure set by the IEPF authority. The steps in this procedure, though straightforward, are time and effort consuming.
Here’s Why Share Recovery From IEPF is Hard
Recovery of shares from IEPF is hard for many reasons. According to the IEPF guidelines, the claimant needs to document all the relevant files and submit them to the Nodal officer of the company that shares the needs to be claimed. The company verifies the documents and sends them for review to the IEPFA. There are many variables associated with this procedure, and if any document fails under the review by the authority, the application is rejected, and all the effort and time invested by the claimant go in vain. The documents include the Form 5, which is downloaded from the website of the Ministry of Corporate Affairs. Then a long list of documents- an indemnity bond, proof of identity, original share certificate, Demat account statement, updated bank details, succession certificate for legal heir. If any of the documents are missing, the application gets rejected.
How Experts Make It Easy For Claimants
The experts at a share recovery company, like Share Connection, assist in the whole procedure of claiming back the shares. From document collection to communicating with the Nodal officer of the company and submitting the document, to reaching out to the IEPFA for getting the updates on the application, these experts do it all. Here’s what their services include:
- Filling the form-5 and attaching the right documents.
- Suggesting legal steps in case a document is missing.
- Opening a Demat account to dematerialise the physical certificate
- Submitting the form to the Nodal officer.
- Checking updates from the IEPF authority.
- Ensuring the shares are transferred back the claimant’s Demat account.
Conclusion
The recovery of shares from IEPF is hard and sometimes disheartening in case the application gets rejected. But with the right assistance, one can seamlessly claim their shares from IEPF. All they need to do is reach out to a professional recovery service company. Share Connection is a leading company that has a large team of highly qualified experts. These experts have the knowledge and experience to deal with the legal procedures. They are CA, CS, lawyers, and relationship managers with deep financial and legal skills. Choose Share Connection and get comprehensive share recovery services.