What is the Investor Education and Protection Fund (IEPF)? Why are shares debited from my demat account without my consent?
The Investor Education and Protection Fund (IEPF) was set up under the Ministry of Corporate Affairs for the purpose of promotion of awareness and protection of the interests of investors.
As per the IEPF 2016 Rules, all shares for which dividends have not been paid or claimed for a period of seven consecutive years or more by shareholders are transferred to the IEPF demat account. This transfer is automatically initiated by the IEPF authorities; Geojit has no role in this, nor do we receive any intimation regarding such transfers. An email is sent by the respective company to the shareholder's registered email ID.
To redeem these shares:
2. Save and upload the form by following the instructions given on the MCA website. An acknowledgement will be generated indicating the SRN, which can be used to track the form.
3. Print the filled IEPF form and the acknowledgement.
4. Submit the following documents to the Nodal officer (IEPF) of the company at its registered office in an envelope marked "Claim for refund from IEPF authority":
- Indemnity Bond (original)
- Copy of the acknowledgement
- Self-attested copy of the filled IEPF-5 Form
- Any other documents as mentioned in the IEPF-5 Form
The claim forms will be verified by the concerned company and based on their verification report, a refund will be released by the IEPF authority in favour of the claimant (to their aadhaar linked bank account).
To avoid this, you are requested to ensure your bank account details (bank account number, IFSC, MICR) are updated in your demat account.
Refer the IEPF website for more information.
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