Unclaimed shares after 7 years are not lost. If the dividend on your shares stays unclaimed for 7 consecutive years, the company transfers the shares and the unpaid dividend to the IEPF Authority, and you can still claim them back.
Quick Facts
| Point | Detail |
|---|---|
| Trigger | Dividend unpaid or unclaimed for 7 consecutive years or more |
| Where shares go | IEPF Authority (demat account held by the Authority) |
| Who can claim | The original shareholder, or legal heirs if the holder has passed away |
| Claim form | Form IEPF-5, filed online at iepf.gov.in |
| Who verifies | The company’s Nodal Officer (IEPF) |
| Result | Shares and dividend credited back to your demat account |
Why do shares move to IEPF?
Under Section 124 of the Companies Act, 2013 and the IEPF Rules, 2016, a company must transfer shares to IEPF if the Unclaimed shares after 7 years dividend on them has not been claimed for 7 consecutive years. This is why a forgotten dividend can eventually lead to the shares themselves being transferred. Common reasons dividends go unclaimed:
- Old bank details or address registered with the company
- Physical share certificates that were never dematerialised
- The holder passed away and legal heirs never claimed the holding
- The investor simply forgot about the investment
How to check if your shares are in IEPF
- Check the “Unclaimed Dividend / Shares transferred to IEPF” section on the company’s website. Companies publish shareholder lists there.
- Search for your name or folio number on the IEPF Authority website (iepf.gov.in).
- Contact the company’s Registrar and Transfer Agent (RTA) with your folio number or DP ID and Client ID.
- Look for old notices. Companies send a notice and publish a newspaper advertisement before transferring shares.
Retention Period
Transfer to IEPF
Claiming Shares from IEPF
How to claim shares back from IEPF (step by step)
- Confirm the transfer. Find out which company, folio number and years of unclaimed dividend are Unclaimed shares after 7 years involved.
- Get the Entitlement Letter. Many companies ask you to first submit your identity and holding documents to the company or its RTA. The Nodal Officer then issues an Entitlement Letter that lists the shares and dividend you can claim.
- File Form IEPF-5 online at iepf.gov.in. PAN is mandatory. Save the acknowledgement and SRN after submission.
- Send the physical documents to the company’s Nodal Officer (IEPF) at the registered office, in an envelope marked “Claim for refund from IEPF Authority.” This includes the original indemnity bond, a copy of the acknowledgement and a self-attested copy of the form.
- Company verification. The company checks your documents and submits an online e-verification report to the IEPF Authority, which the rules require within 30 days of receiving the claim.
- IEPF Authority processes the claim. If everything is in order, the shares are credited to your demat account and the dividend to your bank account.
Documents usually required
The exact list depends on the company and your case, so always check the IEPF-5 help-kit and the company’s own procedure. Generally you will need:
- Identity proof (PAN, Aadhaar) and address proof
- Demat account details (client master list or cancelled demat slip)
- Cancelled cheque or bank proof
- Copy of share certificate, if shares were held physically
- Original indemnity bond and Form IEPF-5 acknowledgement
- Entitlement Letter from the company or RTA, where applicable
If the shareholder has passed away, legal heirs also need the death certificate and proof of succession, such as a succession certificate, probate or legal heir documents, as accepted by the company.
Why claims get delayed or rejected
[Add your real experience here, for example: “In the claims we handle, the most common delays come from…” followed by 3 to 4 genuine points.]
Common reasons across IEPF claims include:
- Name, signature or address not matching company records
- Wrong folio number or DP ID / Client ID
- Incomplete legal heir or transmission documents
- Missing or incorrectly executed indemnity bond
If the company flags a discrepancy, respond quickly and align your documents with the company’s records.
The IEPF acts as a repository, ensuring that unclaimed shares are not misused while providingUnclaimed shares after 7 years mechanisms for rightful owners to reclaim them.
How to stop your shares going to IEPF
- Keep your address, phone number and bank details updated with the company or RTA
- Convert physical certificates to demat form
- Add a nominee on every holding
- Review your holdings and dividend credits once a year
How Care4Share can help
Claiming from IEPF involves many documents and back-and-forth with the company. Care4Share helps with IEPF share recovery, transmission of shares, succession certificates, demat of physical shares and lost share certificates. Call [Phone] or use the contact form for a consultation.
Frequently Asked Questions
What happens to shares that are not claimed?
In cases where shares have been neglected for a period of 7 years due to not being claimed, they are given the right to be moved to the IEPF. These shares are in fact the property of the owner, so they are eligible to be reclaimed through the IEPF Authority via a request and necessary paperwork.
What could happen if the dividend is not claimed for 7 years?
If dividends remain unclaimed for seven consecutive years, they, along with the corresponding shares of the shareholder, become liable to be transferred to the Investor Education and Protection Fund (IEPF).
What are the processes in losing shares and recovering unclaimed shares?
Recovering shares is as simple as filling out a form, in this case the form is called IEPF-5. After filling out this form IEPF, you must submit the necessary paperwork to the company’s Nodal Officer, where the verification for the final approval is conducted.
How are shares verified to see if they have been moved?
In order to see if the shares are unactive, are active or have been moved, you can check through the demat account, give the company a call for the RTA, or check the IEPF’s search portal.
How much are unclaimed shares in India?
The most recent statistics, more than 1 trillion worth of shares have not been claimed and over 1,000,000 of the people have not claimed their shares and dividends.