Guidelines for Recovery of Shares From IEPF

To protect investors from losing control of their assets, stocks, unclaimed shares, or dividends, the Indian government established the Investor Education and Protection Fund (IEPF). In other words, if an investor dies, their investments and any unclaimed dividend money are given to the government. Thus, if you're looking to recover shares from IEPF, you've come to the correct spot. Here, we provide the essential information you need, and this blog will point you on the right route. If you still have questions, you can contact Legalraasta's legal counsel.

Read also this -: India’s Best Share Recovery Consultant

What does IEPF mean?

If an investor loses money for any reason, the lost money is transferred to the government for the benefit of the general populace. To prevent this, the government established the IEPF. Many instances of shareholders forgetting to designate a nominee for their shareholdings have occurred. If the investor's legitimate heirs fail to assert their claim, the government may spend these monies as it sees proper for the welfare of the general public. To facilitate the recovery of shares from IEPF, the IEPF promotes and permits investors to get in touch with the government to reclaim their dividends and the refund of long-forgotten shares. The IEPF was created with the interests of the shareholders in mind and aids in protecting investor funds while also bringing attention to the problem of recovering shares from IEPF.

Required Vital Details for the Recovery of Shares from IEPF

  • Information about the claimant and the OCI/PIO number or Aadhar card.
  • CIN Number and the party to whom the payment is owed.
  • Demat Account Number, Bank Account Information, and Cancelled Cheque.
  • Information on the dividend and share to be claimed for recovery of shares from IEPF.
  • Original Indemnity Bond on a non-judicial stamp paper(claimant's signature ).
  • Original advance stamped receipt(claimant and witness signatures).
  • Original share certificates( physical form).
  • Copy of transaction statement (Demat form).
  • Aadhaar card (Indian citizen) for recovery of shares from IEPF.
  • Overseas Citizen of India (OCI), passport, or PIO card (NRIs & foreigners).
  • Evidence of eligibility ( certificate of share, etc.).
  • Key Amendments in the IEPF Rules

  • According to the modification, shares held in the DEMAT account will not be transferred or handled in any other way save returning them to the claimant as soon as he approaches the Authority or in line with the sub-rules.
  • The Authority may receive the sum due from the Company on behalf of the Minority Shareholders if the Company receives a request for purchase through the Company.
  • For crediting the money, a distinct ledger account must be kept.
  • The authority is in charge of verifying the fulfillment of the requirements outlined in the applicable section of the Act and the rules framed thereunder.
  • If shares have been valued, the authority may also request a report from the company regarding the fulfillment of the requirements by the acquirer of shares.
  • If a disagreement or litigation is filed, the Company shall be responsible for holding the Authority harmless.
  • Read also this -: Detailed Procedure for Recovery of Shares From IEPF

    Conclusion

    We hope you can comprehend the fundamental regulations and amendments set forth by the Indian government for the recovery of shares from IEPF through this blog. You can consult Legalraasta, which is India's top legal consultation for recovering shares in India, to recover shares. By scheduling a free appointment with one of our solicitors, you can locate misplaced shares. We sincerely hope you enjoyed reading our blog and that you will spread the word about it on other social media sites to your friends and family.

    Comments

    Popular posts from this blog

    Recovery Lost Shares of Larsen & Toubro

    How do you recover from 50% Stock Loss

    What Is Face Value of Share in Stock Market – Important Things To Know