IEPF Claim Process: IEPFA Focuses on Unclaimed Financial Assets and Investor Rights

The IEPF claim process has again come into focus after the Investor Education and Protection Fund Authority, under the Ministry of Corporate Affairs, organised a panel discussion on “Aapki Poonji Aapka Adhikaar – Learning and Way Forward” at the Samarasta Auditorium, Dr. Ambedkar International Centre, New Delhi, on 22 June 2026.

According to the official PIB release, the programme brought together policymakers, regulators, experts and investor awareness advocates to deliberate on strengthening investor rights, reclaiming unclaimed financial assets, and building a more inclusive financial ecosystem. (Press Information Bureau)

A publication titled “Claiming the Unclaimed: Unlocking the Potential of Idle Financial Assets in India” was also unveiled by Ms. Deepti Gaur Mukerjee, Chairperson, IEPFA and Secretary, Ministry of Corporate Affairs, along with other dignitaries. The book is intended to serve as a knowledge resource for policymakers, researchers, financial institutions and investors. (Press Information Bureau)

Table of Contents

1. What IEPFA announced
2. Why unclaimed financial assets matter
3. Legal background of IEPF under the Companies Act
4. Practical impact for investors and legal heirs
5. What shareholders should do now
6. Compliance relevance for NRIs and families
7. Key takeaways
8. FAQs

What IEPFA Announced

The panel discussion focused on three practical concerns:

First, many investors and family members are still unaware that unpaid dividends, shares, matured deposits and debentures may be transferred to IEPF if they remain unclaimed for the prescribed period.

Second, even where families are aware of such assets, claimants often face documentation, KYC, demat, bank account, transmission and succession-related difficulties.

Third, policymakers and regulators are now placing greater emphasis on digital platforms, awareness drives, technology-led tracking and stakeholder coordination.

This is important because the IEPF claim process is not merely a filing exercise. It often involves tracing old investments, reconciling shareholder records, updating KYC, obtaining transmission documents, checking company-level records and submitting the correct claim with supporting evidence.

Why Unclaimed Financial Assets Matter

Unclaimed financial assets usually arise due to change of address, death of the original shareholder, old physical share certificates, missing nominations, inactive bank accounts, forgotten investments, mergers, dematerialisation gaps, or lack of communication between companies and investors.

For many families, such assets may represent long-forgotten wealth. In some cases, old shares may have appreciated substantially over time. Therefore, reclaiming unclaimed dividends and shares is not only a legal right but also a matter of financial justice.

The theme “Aapki Poonji Aapka Adhikaar” captures this idea clearly: capital belongs to the rightful owner, and systems must help citizens reclaim it with transparency.

Legal Background of IEPF under the Companies Act

Section 124 of the Companies Act, 2013 deals with unpaid dividend accounts. Section 125 establishes the Investor Education and Protection Fund. India Code also lists the IEPF Authority Rules, 2016, which govern accounting, audit, transfer and refund matters relating to IEPF. (India Code)

Broadly, investors or eligible claimants may need to claim assets such as:

• unpaid or unclaimed dividends;
• shares transferred to IEPF;
• matured deposits;
• matured debentures;
• application money due for refund;
• redemption proceeds of preference shares; and
• other eligible amounts transferred to the Fund.

The official IEPFA function includes facilitating refunds of shares, unclaimed dividends, matured deposits and debentures transferred to the Fund. (Press Information Bureau)

IEPF Claim Process: Practical Impact for Investors and Legal Heirs

The renewed policy attention is welcome because the IEPF claim process can be difficult for ordinary families, especially where the original investor has passed away.

In practical terms, claimants should first identify the company, folio number or demat details, year-wise dividend history, number of shares transferred, and whether the holding is in physical or demat form. They should also verify whether the claimant is the original shareholder, joint holder, nominee, legal heir, successor or representative of the estate.

Where the original shareholder has died, the matter may involve transmission of shares, succession documents, death certificate, legal heir certificate, probate, succession certificate, indemnities, affidavits and NOC from other legal heirs, depending on the facts and company requirements.

For taxpayers, recovered dividend income, capital gains on later sale of shares, and AIS/Form 26AS reconciliation may also become relevant. Professional assistance may be useful through ITR filing services, especially where old dividends, capital gains or refund claims need to be reported correctly. The ITR filing page was verified as live and covers capital gains, dividends, AIS/TIS and refund-related support. (CA Alok Kumar)

What Shareholders Should Do Now

Investors and families should take the following steps:

1. Review old share certificates, demat statements, dividend warrants and bank records.
2. Check whether dividends have remained unpaid or unclaimed.
3. Verify whether shares or dividend amounts have been transferred to IEPF.
4. Update PAN, Aadhaar, bank account, demat and KYC details.
5. Keep succession documents ready where the original investor is deceased.
6. Reconcile recovered income with tax records before filing the income tax return.
7. Avoid unauthorised intermediaries and rely on official sources and professional documentation.

Where old investments belong to an NRI or a family member living abroad, FEMA, repatriation, residential status and tax reporting issues may also arise. In such cases, NRI tax and FEMA advisory may be relevant. The NRI service page was verified as live and covers NRI ITR filing, FEMA, DTAA and repatriation matters. (CA Alok Kumar)

Compliance Relevance for NRIs and Families

Unclaimed shares and dividends often come up in family settlement, inheritance, succession and NRI repatriation cases. Once shares or money are recovered, the family may need support for:

• taxability of dividend income;
• capital gains computation on sale of shares;
• reporting in income tax return;
• remittance of money outside India;
• CA certificates for foreign remittance;
• net worth documentation for visa, bank or inheritance purposes; and
• reply to tax notices if recovered income appears in AIS or TIS.

For cross-border remittance after recovery, Form 145 and Form 146 foreign remittance compliance may be relevant. The page was verified as live and covers CA certificate, TDS rate determination, DTAA and UDIN-based certification for foreign remittance. (CA Alok Kumar)

Where recovered assets need to be disclosed for visa, loan, tender, family settlement or wealth documentation, a net worth certificate by Chartered Accountant may also be useful. The verified page covers UDIN-based net worth certificates for visa, loans, tenders and regulatory documentation. (CA Alok Kumar)

Why This IEPFA Update Is Important

The IEPFA programme is not a new amendment or new notification. It is a policy and awareness-oriented update. However, it is still significant because it highlights the Government’s continued focus on investor protection, financial inclusion and return of idle assets to rightful owners.

The discussion also indicates that future reforms may increasingly focus on:

• simplified claim settlement;
• digital tracking of unclaimed assets;
• wider public awareness;
• coordination among companies, RTAs, depositories and regulators;
• better investor education; and
• stronger trust in financial institutions.

For investors, the message is simple: old financial assets should not be ignored. Families should periodically review investments, nominations, KYC, bank mandates and demat holdings.

Key Takeaways

The IEPF claim process is an important investor protection mechanism under Indian company law. The IEPFA panel discussion and the launch of the book “Claiming the Unclaimed” reinforce the need for awareness, documentation and easier access to unclaimed financial assets.

Investors should not wait until claims become complicated. Updating records, maintaining nominations, preserving documents and reviewing old investments can prevent future difficulties.

For legal heirs, NRIs and families dealing with old shares or dividends, the process should be handled carefully because company law, tax, demat, succession and FEMA issues may overlap.

FAQs on IEPF Claim Process

1. What is IEPF?

IEPF stands for Investor Education and Protection Fund. It is established under Section 125 of the Companies Act, 2013 for investor education, protection and related purposes. (India Code)

2. What was the IEPFA event held on 22 June 2026?

IEPFA organised a panel discussion titled “Aapki Poonji Aapka Adhikaar – Learning and Way Forward” in New Delhi and launched the book “Claiming the Unclaimed: Unlocking the Potential of Idle Financial Assets in India.”(Press Information Bureau)

3. Does this announcement change the IEPF claim process?

No new rule change was notified in the PIB release. The announcement is mainly an awareness, policy discussion and knowledge-resource update.

4. Which assets can commonly be claimed from IEPF?

Common assets include unclaimed dividends, shares transferred to IEPF, matured deposits, matured debentures and other eligible amounts transferred to the Fund.

5. Why do IEPF claims become difficult?

IEPF claims become difficult due to missing records, death of shareholder, absence of nomination, old physical shares, KYC mismatch, bank account issues, demat problems and incomplete succession documents.

6. Should recovered dividends or shares be considered for income tax reporting?

Yes. Tax implications may arise depending on the nature of income, timing, later sale of shares and AIS/Form 26AS reporting. Proper reconciliation before ITR filing is advisable.

7. Can NRIs claim old shares or dividends from IEPF?

Yes, NRIs may claim eligible assets, but FEMA, tax residency, repatriation and documentation issues should be reviewed carefully.