Recovery of Shares
It’s hard to imagine the pain of losing your shares and matured dividends. These are valuable, hard-earned assets that secure your future from unforeseen events, including financial upheaval. If you can relate, we have good news for you: you can reclaim these assets without a protracted legal battle. Has this piqued your interest? Let’s understand how you can seamlessly reclaim your lost investments.
What Happens to the Unclaimed or Unpaid Shares in India?
Legally, in India, if dividends remain unclaimed or unpaid for seven consecutive years, the corresponding shares are transferred to the Investor Education and Protection Fund (IEPF) Authority. The IEPF is a government-backed custodian founded to protect investors’ interests by holding unclaimed or unpaid shares. Once this seven-year timeline is passed, the Government of India (GOI), through the IEPF Authority, transfers these assets to the IEPF Fund (a trust) to safeguard shareholders’ interests.
The good thing is that you can reclaim these shares and dividends by following a clear, structured legal process, which primarily involves filing an application (Form IEPF-5) and providing evidence to reinforce your shareholding ownership. However, if dealing with legalities is not your specialty, the process can become overwhelming. That is where Adviso steps in. We are among the trusted partners with an experience of over five years in facilitating IEPF claims.
How does IEPF Safeguard the Shareholders’ Interest for Share Recovery?
The entire process for the recovery of shares falls under Sections 124 and 125 of the Companies Act, 2013, and the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016.
The IEPF Authority, under the Ministry of Corporate Affairs (MCA), acts as a custodian of shares that have either been unclaimed or unpaid for seven consecutive years. The IEFP transfers such shares into a trust until the rightful owners reclaim them through a predetermined legal procedure.
How to Apply With IEFP for the Recovery of Shares: A 2026 Guide
Here is the phase-wise procedure to apply with IEFP for reclaiming your shares seamlessly.
Phase 1: Filing the Claim
- Obtain Entitlement Letter: The very first step you must take is to contact the Company’s Registrar and Transfer Agent (RTA). You must do so to confirm whether the IEPF has taken possession of shares. This will lead you to receive an Entitlement Letter.
- Online Filing: Next, you must navigate the MCA/IEPF website to file the prescribed form, viz, IEPF-5, to claim share recovery or amounts. The successful filing will lead the portal to generate a Service Request Number (SRN) and an Indemnity Bond. Keep these intact until you receive your shares.
Phase 2: Physical Submission and Verification
- Gather Documents: Arrange the documents cited in the next section. You must sign them to ensure compliance.
- Submission to Company: Club all the signed documents alongside Form IEPF-5, the SRN acknowledgement, and share them with the company’s nodal office.
- Company Verification: The Company’s Nodal Officer will thoroughly review the claim against the paperwork you have provided. If everything is in order, the Nodal officer will hand over the verification report electronically to the IEPF authority. This entire process will take a few days to one month to complete.
Phase 3: Authority Approval and Credit
- IEPF Scrutiny: The IEPF Authority will vet the verification report shared by the Nodal Officer to ensure accuracy and compliance.
- Refund: Upon final approval, the IEPF Authority will initiate the refund process. The applicant will receive the shares’ amount in their demat account. As far as the unclaimed dividends are concerned, the authority will transfer them to the claimant’s bank account.
Documents You Need for Recovery of Shares
| Document Type | Description/Purpose |
| IEPF-5 | Duly filled and printed online claim form with the SRN. |
| Indemnity Bond | Original, notarized bond (on appropriate value non-judicial stamp paper) and Advance Stamped Receipt, as auto-generated after online submission. |
| Identity Proof | Self-attested copies of PAN Card and Aadhaar Card (or Passport/OCI/PIO card for NRI/Foreigners). |
| Ownership Proof | Original physical Share Certificate (if shares were physical) or a copy of the Client Master List (CML) from the Demat Account, and a transaction statement. |
| Bank Proof | Original Cancelled Cheque leaf with the claimant’s name printed. |
| Entitlement Proof | Entitlement Letter issued by the Company/RTA. |
| Legal Heir Claims | (If applicable) Notarized copy of the Death Certificate and the Succession Certificate / Probate / Letter of Administration. |
How Adviso Can Help with Recovery of Shares
While seemingly straightforward, the IEPF recovery process can turn into an overwhelming experience, leading to rejection if
- Signatures found to be mismatched
- Some annexures are missing or misleading
- The claimant failed to prove their ownership
Even with correct documentation, the process may last from a few weeks to months. This can be utterly discouraging if you need funds urgently. That’s where Adviso steps in.
As an experienced partner, Adviso enjoys a reputable presence in the market when it comes to rendering legal services, ranging from company formation to recovery of shares. Our experts are well-versed and experienced in navigating a complex maze of legalities on behalf of their clients, be it a matter of starting a business from scratch or applying for share recovery.
We ensure a seamless experience for our esteemed clients with proper due diligence and paperwork. Contact us now to reclaim your shares swiftly and seamlessly without a legal hassle.
Also Read: Insurance Agent Broker License in India
Frequently Asked Questions (FAQs)
1. What triggers the transfer of shares and dividends to the IEPF?
The transfer is triggered when dividends on a shareholder’s investments (shares, debentures, matured deposits, etc.) remain unclaimed or unpaid for seven consecutive years. Once this seven-year period is complete, the company is legally obliged under the Companies Act, 2013, to transfer the unclaimed dividends and the corresponding shares to the Investor Education and Protection Fund (IEPF) Authority.
2. Is there a time limit for claiming shares and dividends from the IEPF?
No. Once your shares or amounts are transferred to the IEPF Fund, there is no statutory time limit for the rightful owner to claim them back. The IEPF Authority holds these assets in a custodial capacity indefinitely. However, it is advisable to initiate the claim as soon as possible to minimize potential issues with lost documentation or inheritance complexity.
3. What happens if the original shareholder is deceased?
If the original shareholder is deceased, the legal heirs, successors, or nominees are eligible to claim the assets. This process is more complex and typically requires:
Completing the Share Transmission process with the company first.
Submitting additional legal documents like a notarized Death Certificate, Succession Certificate, or Probate/Will (depending on the value and state laws) along with the IEPF-5 form.
4. How long does the entire IEPF claim process usually take?
While the official timeline can vary, a typical IEPF claim process, from initial document gathering to the final credit of shares to your Demat account, generally takes 3 to 6 months. The total time depends heavily on the accuracy and completeness of the submitted documents and the time taken by the company’s Nodal Officer to verify the claim. Any discrepancy can cause significant delays.
5. Why do I need professional help like Adviso for this claim?
While the process is government-mandated, it is administratively complex. Professional help is invaluable because:
Documentation: They ensure all required documents, including the crucial Indemnity Bond and Advance Stamped Receipt, are correctly prepared and notarized, avoiding rejection.
Liaison: They manage constant follow-up with the RTA, the Company Nodal Officer (for the critical 30-day verification report), and the IEPF Authority.
Case Complexity: They expertly handle complex situations like lost share certificates, name mismatches, and legal heir claims, which often lead to outright rejection if filed incorrectly by an individual.
