IEPF Recovery Playbook (2025–26) — Finin2min
Law • Process • Timelines • Practical Examples
Key Truth:
Unpaid dividends and shares transferred to IEPF are not lost.
Ownership survives. Recovery is a statutory right, not a concession.
1️⃣ Legal Framework — What the Law Says
📜 Governing Provisions
| Provision | What it mandates |
|---|---|
| Section 124(5), Companies Act, 2013 | Unpaid/unclaimed dividends → transferred to IEPF after 7 consecutive years |
| Section 124(6) | Corresponding shares also transferred to IEPF |
| Section 125 | Establishes Investor Education & Protection Fund |
| IEPF Authority Rules, 2016 | Recovery mechanism via Form IEPF-5 |
| Rule 7(1) | Claimant retains full ownership rights |
| Rule 7(7) | Shares/dividends restored to claimant after verification |
📌 Transfer to IEPF does NOT extinguish ownership.
2️⃣ What Gets Transferred — and What Can Be Recovered
✅ Recoverable Assets from IEPF
| Asset Type | Recoverable? |
|---|---|
| Unpaid / unclaimed dividends | ✅ Yes |
| Equity shares transferred to IEPF | ✅ Yes |
| Bonus shares | ✅ Yes |
| Split / consolidated shares | ✅ Yes |
| Corporate benefits accrued during IEPF period | ✅ Yes |
Eligible Claimants
- Original shareholder
- Legal heir(s)
- Nominee
- NRI / Foreign shareholder
- Joint holder(s)
3️⃣ Timeline Snapshot — How Shares Move to IEPF
Dividend declared → Unpaid Dividend A/c (30 days)
↓
7 consecutive years unclaimed
↓
Dividend + Shares transferred to IEPF
↓
Claim via Form IEPF-5 → Verification → Restoration
4️⃣ Step-by-Step Recovery Process (Validated)
🔁 Step 1: Identify Where the Asset Lies
- Company website (IEPF disclosure)
- Registrar & Transfer Agent (RTA)
- IEPF portal search
🧾 Step 2: File Form IEPF-5 (Revised)
📅 Revised Form IEPF-5 effective: 6 October 2025
Key New Requirements
- Entitlement letter reference
- Authorised representative details
- Enhanced bank & demat validation
📌 Filing is online, followed by physical verification through company/RTA.
📂 Step 3: Submit Documents to Company / RTA
Core Documents (All Claimants)
| Document | Purpose |
|---|---|
| PAN & Aadhaar | Identity |
| Cancelled cheque / bank verification | Credit of funds |
| Demat account details | Share re-credit |
| Indemnity bond & affidavit | Statutory safeguard |
| Shareholding proof | Entitlement |
5️⃣ Physical Share Certificates — Special Focus
🔔 SEBI Special Window (Critical)
🗓 Valid till: 6 January 2026
| What it allows | Why it matters |
|---|---|
| Re-lodgement of physical transfer requests rejected pre-April 2019 | Final chance to regularise ownership |
| Mandatory dematerialisation | Required before IEPF credit |
📌 Physical shares must be dematerialised to complete recovery.
6️⃣ Legal Heirs — Simplified Norms (2025 Update)
🧑⚖️ Transmission + IEPF Claim
| Scenario | Requirement |
|---|---|
| Shareholder deceased | Death certificate mandatory |
| Legal heir | Succession / legal heir proof |
| Lost certificates ≤ ₹5 lakh | No FIR required (self-declaration sufficient) |
| Multiple heirs | NOC / consent affidavits |
📌 SEBI 2025 relaxation significantly reduces procedural friction.
7️⃣ Demat & KYC — Non-Negotiable
| Requirement | Status |
|---|---|
| Demat account | Mandatory |
| PAN–Aadhaar–Bank linking | Strongly advised |
| Contact & nomination update | Prevents future IEPF transfer |
🔁 Nomination Enhancement (2025)
- Up to 10 nominees per demat / MF folio
- Reduces future unclaimed assets risk
8️⃣ Common Errors That Delay Claims
❌ Name mismatch (old spellings, initials)
❌ Wrong sequence (IEPF before transmission)
❌ Missing indemnity or incorrect format
❌ Physical shares not dematerialised
❌ Old KYC / inactive demat
❌ Filing old (pre-Oct-2025) IEPF-5 format
9️⃣ Practical Example
Case:
- Shares bought in 1998
- Dividends unclaimed since 2016
- Shares transferred to IEPF in 2023
Solution Path
- Open demat account
- Dematerialise physical shares (SEBI window if needed)
- File revised Form IEPF-5
- Submit documents to company/RTA
- Shares + dividends restored
⏱ Typical timeline: 3–6 months (clean cases)
🔍 Finin2min Takeaway
Unclaimed dividends are not dead assets — they are dormant rights.
With:
- Revised IEPF-5 (Oct 2025)
- SEBI physical share window (till Jan 2026)
- Simplified norms for legal heirs
👉 Recovery has never been easier — but documentation discipline is everything.
⚠️ Disclaimer
This article is based on the Companies Act, 2013, IEPF Rules, and SEBI circulars valid up to January 2026. Procedures and formats are subject to change via MCA/SEBI notifications. Always verify with the latest circulars or professional advice before filing.
Article related to –
Unclaimed dividends India
IEPF claim process
Recover shares from IEPF
IEPF Form IEPF-5
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Physical share recovery India
Unpaid dividend recovery
Unclaimed shares legal process India
IEPF recovery for legal heirs
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IEPF rules Companies Act 2013
Dematerialisation of physical shares
SEBI special window physical shares
