What Is IEPF? A Plain-English Guide for Investors

The short answer

The Investor Education and Protection Fund (IEPF) is a fund created under the Companies Act, 2013 and administered by the IEPF Authority, which functions under the Ministry of Corporate Affairs. It receives certain amounts that have remained unpaid or unclaimed for long periods, and it is used for investor education and protection.

What goes into IEPF?

• Dividends that have remained unpaid or unclaimed for seven years
• Shares on which dividend has remained unpaid or unclaimed for seven consecutive years
• Certain other amounts, such as matured deposits and debentures, application money due for refund and similar sums, as the law provides

Why do shares move to IEPF?

Companies must keep unpaid dividend in a separate account. If dividends on a holding are not claimed for seven consecutive years, the company must transfer the related shares to the IEPF Authority's demat account. Typical reasons holders miss dividends are change of address, closed bank accounts, lost warrants, death of the holder, or simply forgetting about the investment.

Do I lose my shares?

No. The transfer does not cancel your ownership. You, or your legal heirs, can apply to the IEPF Authority to claim the shares and dividends back by filing Form IEPF-5 and following the verification process.

What should I do next?

1. Find out whether any of your shares or dividends may have been transferred (see our guide to checking unclaimed shares).
2. Collect the documents you have — certificates, folio details, old dividend warrants.
3. Read the steps in our IEPF claim process guide and the official IEPF Authority instructions.