Can Legal Heirs Claim Shares from the IEPF on Behalf of a Deceased Shareholder?

Can Legal Heirs Claim Shares from the IEPF on Behalf of a Deceased Shareholder?. When a shareholder passes away, their investments often remain unclaimed due to lack of awareness, missing documents, or delays in transferring ownership. If dividends remain unclaimed for seven consecutive years, both the dividends and the corresponding shares are transferred to the Investor Education and Protection Fund (IEPF) under the Companies Act, 2013.
A common question arises: Can legal heirs claim these shares from the IEPF?
 The answer is yes legal heirs have a full legal right to recover the deceased shareholder’s shares, provided they follow the prescribed procedure and submit the necessary documents.
This article explains the legal rights of heirs, the required documents, the step-by-step claim process, and key considerations.
Legal Rights of Legal Heirs Under the Companies Act, 2013
The Companies Act, 2013 and the IEPF (Accounting, Audit, Transfer and Refund) Rules, 2016 grant legal heirs the right to recover shares that have been transferred to the IEPF.
Relevant Legal Provisions

Section 124(5), Companies Act, 2013:
 Mandates transfer of unclaimed shares and dividends to IEPF after seven years.

Rule 7, IEPF Rules, 2016:
 Describes the procedure for legal heirs/claimants to apply for a refund.

Who Can Claim Shares?
The following individuals are eligible to claim shares on behalf of a deceased shareholder:

Nominee registered with the company or depository

Legal heirs, including spouse, children, or other surviving family members

Successors who can legally establish their right to the estate

Representatives holding a valid Power of Attorney (in special cases)

Note: If a nominee is registered, the process becomes much easier. If not, legal heirs must establish their relationship through legal documents.
Documents Required for Legal Heir Claims
To recover IEPF shares on behalf of a deceased shareholder, the claimant must typically provide:
Identity & Ownership Documents

PAN Card and Aadhaar of the claimant

Client Master List (CML) of the claimant’s Demat account

Original share certificates or proof of holding

Documents Related to the Deceased Shareholder

Death certificate (mandatory)

Last known KYC details (optional but helpful)

Legal Documents for Establishing Heirship

Succession Certificate

Probate of Will (if a Will exists)

Legal Heir Certificate

IEPF-Specific Documents

Form IEPF-5

Indemnity Bond (non-judicial stamp paper)

Affidavit verifying entitlement

Cancelled cheque of the claimant’s bank account

Without valid legal documents proving the relationship, the claim will not be processed.
Step 1: Check if Your Shares or Dividends Are Unclaimed
You can check this in two ways:
Visit the IEPF Website 
Enter your: Folio Number (if physical shares) and DP ID/Client ID (if Demat)
The website will show whether your shares or dividends are transferred to IEPF.
Company’s Investor Relations Page 
Most companies upload the list of unclaimed dividends/shareholders on their websites.
Step 2: Contact the Company’s Registrar & Transfer Agent (RTA)
Every company hires a Registrar & Transfer Agent (RTA) such as:

KFin Technologies

Link Intime

Cameo Corporate Services

MCS Share Transfer Agent

MAS Services, etc.

What you must do:

Contact the RTA through email or phone.

Inform them that you want to recover unclaimed shares.

Request an Entitlement Letter, which confirms:

Number of shares transferred to the IEPF

Amount of unclaimed dividends

Verification that you are the rightful claimant

Documents generally required:

PAN

Aadhaar

Folio Number / Demat details

Old correspondence (if available)

Step 3: Fill Form IEPF-5 on the MCA Website
Go to the Ministry of Corporate Affairs → IEPF Services section.
You need to fill in:

Personal details (Name, DOB, Aadhaar, PAN)

Company name

Number of shares

Dividend details

Demat Account information (DP ID & Client ID)

After submitting:
Download the IEPF-5 Form Save the Acknowledgement/SRN Number. These must be sent to the company later.
Step 4: Prepare Documents for Submission
Once IEPF-5 is filed, prepare the following:
Mandatory Documents

Printed and signed IEPF-5 form

SRN/Acknowledgement copy

Entitlement Letter from RTA

Indemnity Bond (Stamp paper value depends on state rules)

Advance Stamped Receipt

PAN (self-attested)

Aadhaar (self-attested)

Cancelled cheque

Client Master List (CML) from your Demat account

Original share certificates (if you have physical shares)

Additional Documents for Legal Heirs

Death certificate of shareholder

Succession Certificate / Legal Heir Certificate / Registered Will

NOC from all legal heirs (if required)

ID and address proof of all heirs

Step 5: Send All Documents to the Company’s Nodal Officer
Every listed company has a designated IEPF Nodal Officer.
You must courier or speed-post their documents to the company’s registered office address (given on the company’s website).
Example Format:
Nodal Officer – IEPF
 Company Name
 Registered Office Address
 Email & Phone
The company will only start verification once they receive your complete set of documents.
Step 6: Company Verification Process
After receiving your documents, the company will:

Verify your identity

Check the entitlement

Ensure documents are correct

Prepare a Verification Report

As per law, companies must send this report to the IEPF Authority within 30 days.
Step 7: Approval by IEPF Authority
Once the IEPF receives the company’s report, they process your claim.
If approved:

Shares are directly credited to your Demat account

Unclaimed dividends are released to your bank account

Processing time can vary from 1 month to a few months, depending on accuracy and workload.
Challenges Faced by Legal Heirs

Lack of Clear Legal Documents: In absence of a Will or nomination, heirs must obtain a Succession Certificate, which takes time.

Mismatch in KYC Details: Differences in name spelling or outdated address records delay verification.

Missing Share Certificates: Additional procedures such as issuing duplicate certificates or giving an indemnity may be required.

Multi-Heir Claims: When multiple heirs exist, all must give consent or follow court procedures.

How Nomination Helps
If the deceased had registered as a nominee, the entire recovery process becomes much faster. Nominees do not have to obtain succession documents and can directly file a claim with basic identification proof.
Why Professional Help is Useful
Recovering shares from IEPF can be confusing because it involves many steps and legal documents. Small mistakes can lead to delays or rejection of your claim. Professionals understand the process well and make sure everything is filed correctly.
IEPF claims involve:

Preparing legal documents

Getting verification from the company

Following rules under the Companies Act and IEPF

That’s why many people take help from experts to avoid problems and save time. If you need any help with the IEPF share recovery process, you can contact Compliance Calendar LLP for guidance and support. 
Conclusion
Legal heirs have the full right to recover shares and dividends transferred to the IEPF after the death of a shareholder. However, the process involves multiple steps, legal documents, company verification, and strict compliance with the Companies Act and IEPF Rules. With proper paperwork, accurate KYC details, and timely follow-up with the company and IEPF Authority, legal heirs can successfully reclaim the rightful assets of the deceased shareholder. To avoid delays or mistakes, many families prefer taking professional assistance to ensure a smooth and hassle-free claim. If you need help with the IEPF share recovery process, Compliance Calendar LLP is available to guide you at every step.
Frequently Asked Questions (FAQs)
Q1. Can legal heirs claim shares transferred to the IEPF? 
Ans. Yes. Legal heirs, successors, or nominees can claim shares and dividends transferred to the IEPF. They must prove their relationship with the deceased shareholder through legal documents like a succession certificate, will, or legal heir certificate. Once documents are verified, the IEPF Authority releases the shares directly to the heir’s Demat account.
Q2. What documents are required for legal heirs to recover shares from IEPF? 
Ans. Legal heirs must submit ID proofs (PAN, Aadhaar), Demat details, original share certificates (if any), the death certificate of the shareholder, and legal documents establishing heirship. Additional documents like indemnity bonds, affidavits, and NOCs from other heirs may also be required. Incomplete documentation may delay the claim.
Q3. Is a succession certificate mandatory for claiming IEPF shares? 
Ans. A succession certificate is required only when there is no nominee and there are multiple legal heirs or a dispute. If a valid registered will exists, the Probate of Will may be used. If a nominee is registered, the process becomes easier and does not require a succession certificate.
Q4. How long does the IEPF share recovery process take? 
Ans. The process usually takes 3 to 8 months, depending on document accuracy and company verification. Delays may occur if KYC details are outdated, legal documents are missing, or multiple heirs are involved. Professional guidance can help speed up the process.
Q5. What happens if there is no nomination and no will? 
Ans. In such cases, legal heirs must obtain a Legal Heir Certificate or Succession Certificate from a court or competent authority. This proves their entitlement to the shares. The company and IEPF Authority will not process the claim without valid heirship documents.
Q6. Can multiple legal heirs jointly claim IEPF shares? 
Ans. Yes, multiple heirs can file a joint claim. However, they must either file together or provide NOCs in favour of one claimant. If heirs disagree, the IEPF will not release shares until the dispute is resolved legally through court orders.
Q7. What if the original share certificates are lost? 
Ans. If share certificates are missing, the claimant must submit an indemnity bond and may need to complete a duplicate share certificate issuance process with the company. Once verified, the company will confirm entitlement and forward the claim to IEPF.
Q8. Do legal heirs need a Demat account to receive recovered shares? 
Ans. Yes, heirs must have an active Demat account in their own name. IEPF directly credits the recovered shares into the claimant’s Demat account. Without a Demat account, the IEPF cannot release the shares.
Q9. Can rejected IEPF claims be filed again? 
Ans. Yes, if the claim is rejected due to missing documents or errors, it can be re-submitted after correcting the issues. The claimant must refile Form IEPF-5 and send complete documents again to the company’s Nodal Officer for verification.
Q10. Should legal heirs take professional help for IEPF recovery? 
Ans. IEPF claims involve legal documents, company verification, and strict compliance procedures. Professional experts help avoid errors, prepare proper paperwork, and coordinate with the company and IEPF Authority. For smooth recovery, legal heirs can contact Compliance Calendar LLP for complete support.

When a shareholder passes away, their investments often remain unclaimed due to lack of awareness, missing documents, or delays in transferring ownership. If dividends remain unclaimed for seven consecutive years, both the dividends and the corresponding shares are transferred to the Investor Education and Protection Fund (IEPF) under the Companies Act, 2013.

A common question arises: Can legal heirs claim these shares from the IEPF?

The answer is yes legal heirs have a full legal right to recover the deceased shareholder’s shares, provided they follow the prescribed procedure and submit the necessary documents.

This article explains the legal rights of heirs, the required documents, the step-by-step claim process, and key considerations.

Legal Rights of Legal Heirs Under the Companies Act, 2013

The Companies Act, 2013 and the IEPF (Accounting, Audit, Transfer and Refund) Rules, 2016 grant legal heirs the right to recover shares that have been transferred to the IEPF.

Relevant Legal Provisions

Section 124(5), Companies Act, 2013:

Mandates transfer of unclaimed shares and dividends to IEPF after seven years.
Rule 7, IEPF Rules, 2016:

Describes the procedure for legal heirs/claimants to apply for a refund.

Who Can Claim Shares?

The following individuals are eligible to claim shares on behalf of a deceased shareholder:

Nominee registered with the company or depository
Legal heirs, including spouse, children, or other surviving family members
Successors who can legally establish their right to the estate
Representatives holding a valid Power of Attorney (in special cases)

Note: If a nominee is registered, the process becomes much easier. If not, legal heirs must establish their relationship through legal documents.

Documents Required for Legal Heir Claims

To recover IEPF shares on behalf of a deceased shareholder, the claimant must typically provide:

Identity & Ownership Documents

PAN Card and Aadhaar of the claimant
Client Master List (CML) of the claimant’s Demat account
Original share certificates or proof of holding

Documents Related to the Deceased Shareholder

Death certificate (mandatory)
Last known KYC details (optional but helpful)

Legal Documents for Establishing Heirship

Succession Certificate
Probate of Will (if a Will exists)
Legal Heir Certificate

IEPF-Specific Documents

Form IEPF-5
Indemnity Bond (non-judicial stamp paper)
Affidavit verifying entitlement
Cancelled cheque of the claimant’s bank account

Without valid legal documents proving the relationship, the claim will not be processed.

Step 1: Check if Your Shares or Dividends Are Unclaimed

You can check this in two ways:

Visit the IEPF Website

Enter your: Folio Number (if physical shares) and DP ID/Client ID (if Demat)

The website will show whether your shares or dividends are transferred to IEPF.

Company’s Investor Relations Page

Most companies upload the list of unclaimed dividends/shareholders on their websites.

Step 2: Contact the Company’s Registrar & Transfer Agent (RTA)

Every company hires a Registrar & Transfer Agent (RTA) such as:

KFin Technologies
Link Intime
Cameo Corporate Services
MCS Share Transfer Agent
MAS Services, etc.

What you must do:

Contact the RTA through email or phone.
Inform them that you want to recover unclaimed shares.
Request an Entitlement Letter, which confirms:

Number of shares transferred to the IEPF
Amount of unclaimed dividends
Verification that you are the rightful claimant

Documents generally required:

PAN
Aadhaar
Folio Number / Demat details
Old correspondence (if available)

Step 3: Fill Form IEPF-5 on the MCA Website

Go to the Ministry of Corporate Affairs → IEPF Services section.

You need to fill in:

Personal details (Name, DOB, Aadhaar, PAN)
Company name
Number of shares
Dividend details
Demat Account information (DP ID & Client ID)

After submitting:

Download the IEPF-5 Form Save the Acknowledgement/SRN Number. These must be sent to the company later.

Step 4: Prepare Documents for Submission

Once IEPF-5 is filed, prepare the following:

Mandatory Documents

Printed and signed IEPF-5 form
SRN/Acknowledgement copy
Entitlement Letter from RTA
Indemnity Bond (Stamp paper value depends on state rules)
Advance Stamped Receipt
PAN (self-attested)
Aadhaar (self-attested)
Cancelled cheque
Client Master List (CML) from your Demat account
Original share certificates (if you have physical shares)

Additional Documents for Legal Heirs

Death certificate of shareholder
Succession Certificate / Legal Heir Certificate / Registered Will
NOC from all legal heirs (if required)
ID and address proof of all heirs

Step 5: Send All Documents to the Company’s Nodal Officer

Every listed company has a designated IEPF Nodal Officer.

You must courier or speed-post their documents to the company’s registered office address (given on the company’s website).

Example Format:

Nodal Officer – IEPF

Company Name

Registered Office Address

Email & Phone

The company will only start verification once they receive your complete set of documents.

Step 6: Company Verification Process

After receiving your documents, the company will:

Verify your identity
Check the entitlement
Ensure documents are correct
Prepare a Verification Report

As per law, companies must send this report to the IEPF Authority within 30 days.

Step 7: Approval by IEPF Authority

Once the IEPF receives the company’s report, they process your claim.

If approved:

Shares are directly credited to your Demat account
Unclaimed dividends are released to your bank account

Processing time can vary from 1 month to a few months, depending on accuracy and workload.

Challenges Faced by Legal Heirs

Lack of Clear Legal Documents: In absence of a Will or nomination, heirs must obtain a Succession Certificate, which takes time.
Mismatch in KYC Details: Differences in name spelling or outdated address records delay verification.
Missing Share Certificates: Additional procedures such as issuing duplicate certificates or giving an indemnity may be required.
Multi-Heir Claims: When multiple heirs exist, all must give consent or follow court procedures.

How Nomination Helps

If the deceased had registered as a nominee, the entire recovery process becomes much faster. Nominees do not have to obtain succession documents and can directly file a claim with basic identification proof.

Why Professional Help is Useful

Recovering shares from IEPF can be confusing because it involves many steps and legal documents. Small mistakes can lead to delays or rejection of your claim. Professionals understand the process well and make sure everything is filed correctly.

IEPF claims involve:

Preparing legal documents
Getting verification from the company
Following rules under the Companies Act and IEPF

Conclusion

Legal heirs have the full right to recover shares and dividends transferred to the IEPF after the death of a shareholder. However, the process involves multiple steps, legal documents, company verification, and strict compliance with the Companies Act and IEPF Rules. With proper paperwork, accurate KYC details, and timely follow-up with the company and IEPF Authority, legal heirs can successfully reclaim the rightful assets of the deceased shareholder. To avoid delays or mistakes, many families prefer taking professional assistance to ensure a smooth and hassle-free claim. If you need help with the IEPF share recovery process, Compliance Calendar LLP is available to guide you at every step.

Frequently Asked Questions (FAQs)

Q1. Can legal heirs claim shares transferred to the IEPF?

Ans. Yes. Legal heirs, successors, or nominees can claim shares and dividends transferred to the IEPF. They must prove their relationship with the deceased shareholder through legal documents like a succession certificate, will, or legal heir certificate. Once documents are verified, the IEPF Authority releases the shares directly to the heir’s Demat account.

Q2. What documents are required for legal heirs to recover shares from IEPF?

Ans. Legal heirs must submit ID proofs (PAN, Aadhaar), Demat details, original share certificates (if any), the death certificate of the shareholder, and legal documents establishing heirship. Additional documents like indemnity bonds, affidavits, and NOCs from other heirs may also be required. Incomplete documentation may delay the claim.

Q3. Is a succession certificate mandatory for claiming IEPF shares?

Ans. A succession certificate is required only when there is no nominee and there are multiple legal heirs or a dispute. If a valid registered will exists, the Probate of Will may be used. If a nominee is registered, the process becomes easier and does not require a succession certificate.

Q4. How long does the IEPF share recovery process take?

Ans. The process usually takes 3 to 8 months, depending on document accuracy and company verification. Delays may occur if KYC details are outdated, legal documents are missing, or multiple heirs are involved. Professional guidance can help speed up the process.

Q5. What happens if there is no nomination and no will?

Ans. In such cases, legal heirs must obtain a Legal Heir Certificate or Succession Certificate from a court or competent authority. This proves their entitlement to the shares. The company and IEPF Authority will not process the claim without valid heirship documents.

Q6. Can multiple legal heirs jointly claim IEPF shares?

Ans. Yes, multiple heirs can file a joint claim. However, they must either file together or provide NOCs in favour of one claimant. If heirs disagree, the IEPF will not release shares until the dispute is resolved legally through court orders.

Q7. What if the original share certificates are lost?

Ans. If share certificates are missing, the claimant must submit an indemnity bond and may need to complete a duplicate share certificate issuance process with the company. Once verified, the company will confirm entitlement and forward the claim to IEPF.

Q8. Do legal heirs need a Demat account to receive recovered shares?

Ans. Yes, heirs must have an active Demat account in their own name. IEPF directly credits the recovered shares into the claimant’s Demat account. Without a Demat account, the IEPF cannot release the shares.

Q9. Can rejected IEPF claims be filed again?

Ans. Yes, if the claim is rejected due to missing documents or errors, it can be re-submitted after correcting the issues. The claimant must refile Form IEPF-5 and send complete documents again to the company’s Nodal Officer for verification.

Q10. Should legal heirs take professional help for IEPF recovery?

Ans. IEPF claims involve legal documents, company verification, and strict compliance procedures. Professional experts help avoid errors, prepare proper paperwork, and coordinate with the company and IEPF Authority. For smooth recovery, legal heirs can contact Compliance Calendar LLP for complete support.