IEPFA Proposes Faster Refunds for Unclaimed Shares and Dividends, Seeks Public Feedback

The Investor Education and Protection Fund Authority has released draft amendments aimed at simplifying and accelerating the refund process for unclaimed shares and dividends, and is inviting public feedback. 

Key Amendments to Refund Rules 

The proposed changes to the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 focus on 3 areas: reduced timelines, streamlined documentation and a formal appeal mechanism.  

For low‑value claims the disposal period is cut to 30 days, with the authority relying solely on the verifying company’s report. This is expected to reduce processing delays for physical shares valued up to ₹5 lakh, dematerialised shares up to ₹15 lakh and dividend claims up to ₹10,000. 

Scale of Unclaimed Assets 

Current data shows approximately 1,00,00,00,000 unclaimed shares are held by IEPFA, representing a market value of about ₹1 lakh crore.  

Unclaimed dividends total between ₹6,000‑7,000 crore. The authority estimates that faster refunds could benefit millions of investors who have lost access to these assets. 

Procedural Enhancements 

The draft rules introduce clearer responsibilities for listed companies, rationalised document requirements and a transparent appeal process for claimants whose applications are rejected. 

Companies will submit a verification report that the IEPFA can act upon without additional back‑and‑forth, thereby limiting administrative overhead. 

Read More: Top 3 Regular Plan AUMs: ICICI Prudential, HDFC and SBI Mutual Funds Lead Regular Plan Assets in 2025! 

Public Consultation Process 

Stakeholders are invited to submit comments on the proposed amendments by a date to be announced on the IEPFA portal. Feedback will be considered before finalising the rules, which are expected to be implemented within the next fiscal year. 

Conclusion 

The IEPFA’s draft amendments aim to expedite refunds for low‑value claims, clarify procedural steps and provide an appeal route for rejected applications. By addressing a large pool of unclaimed shares and dividends, the changes could improve investor confidence and reduce the backlog of pending refunds. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.