Vivek Ranjanadded a note 3 months ago
Recovery of shares from IEPF with AMFI NAV in india
Recovering shares or dividends transferred to the Investor Education and Protection Fund (IEPF) in India is a detailed process governed by the IEPF Authority, under the Companies Act, 2013. The Association of Mutual Funds in India (AMFI) NAV is related to the net asset value of mutual funds and plays a significant role in assessing fund performance. Below is a detailed explanation covering the recovery of shares from IEPF and the relevance of AMFI NAV in India.
Recovery of Shares and Dividends from IEPF
The IEPF is a government fund established to hold unclaimed dividends, shares, debentures, and other financial instruments for investors. If shares or dividends are transferred to the IEPF due to inactivity or non-claim by the investor for seven consecutive years, you can recover them through the following process:
- Eligibility to Claim Shares/Dividends from IEPF
You can claim shares or dividends if:
You are the rightful shareholder or legal heir/nominee of the shares.
Shares or dividends have been transferred to IEPF due to inactivity for seven years.
- Step-by-Step Process to Recover Shares from IEPF
Step 1: Check the Status of Shares in IEPF
Visit the official IEPF Authority portal (www.iepf.gov.in).
Use the "Search Investor Services" option to check whether your shares or dividends have been transferred to IEPF.
Provide basic details like the company name, folio number, and your name to verify.
Step 2: Gather Required Documents
You need to compile and submit the following documents:
1. Claimant's Identity Proof:
PAN card (mandatory).
Aadhaar card (for individuals).
2. Bank Details:
Canceled cheque with the claimant's name.
Bank passbook or account statement.
3. Proof of Ownership:
Original share certificates (if physical shares).
Demat account statement (if dematerialized shares).
Transaction details showing dividend payouts or corporate actions.
4. Company Documentation:
Indemnity bond (duly notarized).
Affidavit.
Proof of entitlement (e.g., succession certificate or probate, in the case of a legal heir/nominee).
5. Dividend Details:
Information on unpaid dividends, including the year and amount.
Step 3: Submit the Claim Application
Form IEPF-5: Download and fill out Form IEPF-5 from the IEPF portal. This form is used to submit claims for refund or shares transferred to IEPF.
Attach the scanned copies of supporting documents as required.
Step 4: Submission to the Company
After submitting Form IEPF-5 online, take a printout and send the physical documents to the Nodal Officer of the Company (the company that originally issued the shares).
The company verifies the claim and forwards it to the IEPF Authority for approval.
Step 5: Approval by IEPF Authority
The IEPF Authority reviews the application and supporting documents.
Upon approval, shares are credited back to the claimant’s Demat account (if dematerialized) or physical share certificates are issued.
For dividends, the amount is credited directly to the registered bank account.
Key Points to Remember
- Nominee/Heir Claims:
In cases where the original shareholder is deceased, the nominee/legal heir must provide additional documents like a death certificate, succession certificate, or probate of the will.
- Claim Timelines:
The processing time may take 3-6 months depending on the completeness of the documents and the company’s verification process.
- Fees:
There are no fees for submitting claims, but notarization and documentation may incur costs.
AMFI NAV and Its Relevance in Mutual Fund Investments
If you need assistance with recovering your shares or have specific queries regarding AMFI NAV and mutual fund units, let me know!