iepfa: the government simplifies the claims settlement process according to IEPFA

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The government has simplified claim settlement process under the Fund Authority for Investor Education and Protection (IEPFA), including allow self-certification of documents instead of the current notarization requirement. IEPFA, which falls under the administrative control of the Ministry of Corporate Affairs, was established for the administration of investor funds under company law. The authority has a mandate to promote investor education and protection, redeem unclaimed shares, dividends and other amounts that have been transferred to it to right holders.

The claims settlement process has been further simplified through the rationalization of various requirements set out in the IEPFA (Accounting, Audit, Transfer and Refund) Rules, 2016.

“The new regime provides a trust-based model for citizen-centered services and faster response times. It is expected that with these changes, many more applicants will come forward to claim their actions and amounts from IEPFA,” a statement said. official Friday. .

For applicants, the advance receipt requirement has been lifted and the probate / probate certificate requirement has been relaxed down to Rs 5 lakh, for both physical and demat actions.

Additionally, document authentication has been replaced with self-certification, and affidavit and surety requirements have been relatively reduced, the statement said.

For companies, the obligation to attach documents relating to the unclaimed suspended account was lightened and companies were given the flexibility to accept the transmission document according to their approved internal procedures.

Furthermore, “the newspaper advertising requirement for the loss of the physical stock certificate has been lifted up to an amount of 5,000,000 rupees,” the statement said.

To date, IEPFA has approved more than 20,000 redemption requests for more than 1.29 crore of shares. Shares with a market value of over Rs 1,011 crore and dividends and other amounts over Rs 20 crore have been redeemed.

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