IEPF Compliances under the Companies Act, 2013

IEPF Compliances under the Companies Act, 2013 . Under the Companies Act, 2013, companies are required to transfer unclaimed investor money to the Investor Education and Protection Fund (IEPF) if it remains unclaimed for seven continuous years. This generally includes unpaid dividends, matured deposits, debentures, application money, and even shares on which dividends have not been claimed for seven years. In simple terms, if a shareholder does not claim their dividend for a long time, the company cannot keep that money indefinitely; it must transfer both the unpaid amount and the related shares to the IEPF Authority. Before making such a transfer, the company must inform the concerned shareholders, issue public notices, and disclose the details on its website, giving investors an opportunity to claim their dues. The company is also required to file prescribed forms and report the details of such transfers to the government. Even after the transfer, the investor can claim the money or shares back from the IEPF Authority by following the prescribed refund process. These compliances are mandatory, and failure to follow them may result in penalties on the company and its officers.
IEPF-1 – Statement of Amounts Credited to the IEPF
IEPF-1 is a form that a company must file with the government when it transfers unclaimed investor money to the:
Whenever the company transfers such money, it must also inform the government officially by filing Form IEPF-1. This form contains details like:

How much money is being transferred

Type of amount (dividend, deposit, etc.)

Financial year related to the amount

Details of the company

So basically, IEPF-1 acts like a formal report saying, We have transferred this unclaimed amount to the IEPF as required by law.
This form must be filed within 30 days of transferring the amount. If the company does not file it on time, penalties may apply.
IEPF-2 – Annual Statement of Unclaimed and Unpaid Amounts
IEPF-2 is an annual reporting form that companies must file with the government to give details of all unpaid and unclaimed amounts lying with the company.
In simple words, every year a company may have:

Dividends that shareholders did not claim

Deposits that were not taken back

Interest on debentures that remained unpaid

Other investor-related amounts still pending

Even if these amounts have not yet completed 7 years and are not ready to be transferred to the:
Investor Education and Protection Fund
The company must still report them through IEPF-2.
Why is IEPF-2 important?
It is basically a yearly disclosure. The company informs the government:

How much unclaimed money is pending

For which financial year it relates

Names and details of the concerned shareholders

This ensures transparency and keeps a proper record before the amount eventually gets transferred to IEPF after 7 years.
When is it filed?
IEPF-2 must be filed once every financial year, within the prescribed time (generally within 60 days from the date of the Annual General Meeting).
IEPF-3 – Statement of Shares and Amounts Not Transferred Due to Legal or Statutory Restrictions
IEPF-3 is a form that a company files when it is unable to transfer shares or money to the IEPF, even though they are otherwise due, because of some legal restriction.
Normally, if dividends remain unclaimed for 7 years, the company must transfer the related dividend amount and shares to the:
Investor Education and Protection Fund
However, in some cases, the company cannot transfer them due to legal or statutory reasons.
What kind of situations?
For example:

The shares are under a court case

There is a dispute over ownership

Shares are frozen due to an order from court or authority

Regulatory restrictions prevent transfer

Any other legal stay or attachment

In such cases, the company is legally restricted from transferring those shares or amounts to IEPF.
Why is IEPF-3 required?
The government still wants to know:

Which shares/amounts were not transferred

Why they were not transferred

What is the legal reason

Case or order details (if any)

So instead of transferring them, the company files IEPF-3 to inform the authority about the restriction.
When is it filed?
IEPF-3 is filed when such a situation arises and the transfer cannot be made due to legal or statutory restrictions.
IEPF- 4 - Statement of Transfer of Shares to IEPF Demat Account
IEPF-4 is a form that a company files when it transfers shares to the demat account of the:
Why are shares transferred to IEPF?
If a shareholder does not claim dividend on their shares for 7 continuous years, the company is legally required to:

Transfer the unpaid dividend amount to IEPF, and

Also transfer the related shares to the IEPF Demat Account.

This is done to protect investor interests and maintain transparency.
What is IEPF-4 used for?
After transferring the shares to the IEPF Demat Account, the company must officially report the transfer by filing Form IEPF-4.
This form includes details such as:

Name of the shareholder

Number of shares transferred

Type of shares

Date of transfer

Company details

So basically, IEPF-4 acts as a formal intimation to the government that the shares have been transferred as per law.
When is it filed?
IEPF-4 must be filed within 30 days from the date of transferring the shares to the IEPF Demat Account.
Can the shareholder get the shares back?
Yes. Even after shares are transferred to the IEPF, the shareholder can claim them back by applying to the IEPF Authority and completing the prescribed refund process.
IEPF-5 – Refund Claim Form 
IEPF-5 is the form that a shareholder or investor files to claim back money or shares that were transferred to the:
What is IEPF-5?
When dividend, shares, or other investor-related amounts remain unclaimed for 7 years, the company transfers them to IEPF as required under the Companies Act, 2013.
If later the shareholder realizes this and wants their money or shares back, they must file Form IEPF-5.
In simple words:

IEPF-5 is a refund application form.

It is filed by the investor, not the company.

What can be claimed through IEPF-5?
A person can claim:

Unpaid dividend: This is the dividend declared by a company but not claimed by the shareholder. For example, the company announced Rs.10 per share as dividend, but the shareholder did not deposit the cheque or did not update bank details. If this remains unclaimed for 7 years, it is transferred to IEPF. Through IEPF-5, the shareholder can claim that dividend amount back.

Shares transferred to IEPF: If dividend on certain shares is not claimed for 7 continuous years, the company must also transfer those shares to IEPF. The shareholder can later file IEPF-5 to get those shares transferred back to their demat account.

Matured deposits: Some companies accept fixed deposits from investors. When the deposit period ends (maturity date), the investor is supposed to take back the principal amount. If the investor does not claim it for many years, the amount is transferred to IEPF. It can be claimed later using IEPF-5.

Debentures: Debentures are a type of loan given by investors to a company. When debentures mature, the company must repay the amount. If the investor does not claim it and it remains unpaid for the specified period, it is transferred to IEPF and can later be recovered by filing IEPF-5.

Interest amounts: This includes interest on deposits or debentures that remained unpaid or unclaimed. If the investor did not collect the interest for several years, it is transferred to IEPF and can be claimed through IEPF-5.

Application money: Sometimes investors apply for shares or debentures and pay application money, but shares are not allotted or the refund is not claimed. If this money remains unclaimed for a long time, it is transferred to IEPF. The investor can file IEPF-5 to recover it.

Basically, any amount or shares that were transferred to IEPF in their name.
How does the process work?

The investor files IEPF-5 online on the MCA portal.

A copy of the form and required documents is sent to the company.

The company verifies the claim and submits a verification report to IEPF Authority.

After approval, the money is refunded and/or shares are transferred back to the claimant’s demat account.

Important Points

Proper documents (ID proof, PAN, Aadhaar, cancelled cheque, demat details, etc.) are required.

If shares are being claimed, a demat account is mandatory.

Processing may take some time as it involves company verification

IEPF-7 – Statement of Amounts Remitted under Specific Sub-Rules
IEPF-7 is a form that companies file when they transfer certain specific types of amounts to the:
What does this mean in simple words?
Normally, companies use:

IEPF-1 for transferring regular unclaimed amounts (like dividend, deposits, etc.)

IEPF-4 for transferring shares

But in some special situations, certain amounts become payable to IEPF under specific sub-rules of the law (for example, amounts due on account of enforcement, recovery, disgorgement, or specific regulatory directions).
In such cases, IEPF-7 is used to report and confirm those transfers.
Why is IEPF-7 required?
The government wants proper reporting of:

The type of amount being transferred

The legal reason for remittance

Details of the company

The amount sent to IEPF

So IEPF-7 acts as an official declaration that the company has transferred money under a special legal provision.
When is it filed?
IEPF-7 must be filed at the time of remitting such specified amounts to the IEPF, within the prescribed timeline under the applicable rule.
IEPF compliances are not a one-time task but continuous responsibilities for companies under the Companies Act, 2013. Companies must regularly track unpaid and unclaimed dividends, deposits, shares, and other investor-related amounts. Depending on the situation, they may be required to file different IEPF forms, some on a yearly basis and others when a specific event occurs (like transfer of shares or remittance of funds). Timely filing, correct reporting, proper disclosure on the company’s website, and coordination with the RTA and depositories are very important. Any delay or mistake can lead to penalties and may also create disputes with shareholders.
Therefore, companies should maintain a proper IEPF compliance calendar that tracks all due dates and events related to Investor Education and Protection Fund filings such as IEPF-1, IEPF-2, IEPF-3, IEPF-4, and IEPF-7. Having a structured system ensures smooth compliance, avoids last-minute issues, and helps the company follow legal requirements properly and efficiently.
Conclusion 
IEPF compliance is not something a company does only once. It is a regular responsibility under the Companies Act, 2013. Companies must keep checking if any dividend, shares, or other investor money has remained unclaimed for a long time and take proper action within the given time.
If money or shares are not claimed for 7 years, they must be transferred to the Investor Education and Protection Fund. Along with this, companies also need to file the required forms correctly and on time. If they delay or make mistakes, penalties can apply and shareholders may raise disputes.
So overall, companies should maintain a proper system and calendar to track all IEPF related work. Regular monitoring and timely filing help avoid problems and show that the company is responsible and transparent towards its investors.
FAQ’s
Q1. What is IEPF?
Ans. IEPF (Investor Education and Protection Fund) is a government fund where unclaimed dividends, shares, and other investor-related amounts are transferred if they remain unclaimed for 7 years.
Q2. Under which law is the IEPF governed?
Ans. IEPF is governed under the Companies Act, 2013 and the rules made under it.
Q3. When does the dividend get transferred to IEPF?
Ans. If a dividend remains unpaid or unclaimed for 7 continuous years, the company must transfer it to the IEPF.
Q4. Are shares also transferred to IEPF?
Ans. Yes. If dividend on shares is not claimed for 7 consecutive years, the related shares are also transferred to the IEPF Demat Account.
Q5. Can a shareholder claim money or shares back from IEPF?
Ans. Yes. Even after transfer, the shareholder can apply to the IEPF Authority and claim the dividend or shares by submitting the required documents.
Q6. What is Form IEPF-1?
Ans. IEPF-1 is a form filed when a company transfers unclaimed money (like dividends or deposits) to the IEPF.
Q7. What is Form IEPF-2?
Ans. IEPF-2 is an annual form where companies report all unclaimed and unpaid amounts that are still lying with them.
Q8. What is Form IEPF-4?
Ans. IEPF-4 is filed when a company transfers shares to the IEPF Demat Account.
Q9. What happens if a company does not comply with IEPF rules?
Ans. The company and its officers may face penalties and legal consequences for non-compliance.
Q10. Why are IEPF compliances important?
Ans. IEPF compliances ensure transparency, protect investor interests, and prevent companies from holding unclaimed money indefinitely. Proper compliance also avoids penalties and shareholder disputes.

Under the Companies Act, 2013, companies are required to transfer unclaimed investor money to the Investor Education and Protection Fund (IEPF) if it remains unclaimed for seven continuous years. This generally includes unpaid dividends, matured deposits, debentures, application money, and even shares on which dividends have not been claimed for seven years. In simple terms, if a shareholder does not claim their dividend for a long time, the company cannot keep that money indefinitely; it must transfer both the unpaid amount and the related shares to the IEPF Authority. Before making such a transfer, the company must inform the concerned shareholders, issue public notices, and disclose the details on its website, giving investors an opportunity to claim their dues. The company is also required to file prescribed forms and report the details of such transfers to the government. Even after the transfer, the investor can claim the money or shares back from the IEPF Authority by following the prescribed refund process. These compliances are mandatory, and failure to follow them may result in penalties on the company and its officers.

IEPF-1 – Statement of Amounts Credited to the IEPF

IEPF-1 is a form that a company must file with the government when it transfers unclaimed investor money to the:

Whenever the company transfers such money, it must also inform the government officially by filing Form IEPF-1. This form contains details like:

How much money is being transferred
Type of amount (dividend, deposit, etc.)
Financial year related to the amount
Details of the company

So basically, IEPF-1 acts like a formal report saying, We have transferred this unclaimed amount to the IEPF as required by law.

This form must be filed within 30 days of transferring the amount. If the company does not file it on time, penalties may apply.

IEPF-2 – Annual Statement of Unclaimed and Unpaid Amounts

IEPF-2 is an annual reporting form that companies must file with the government to give details of all unpaid and unclaimed amounts lying with the company.

In simple words, every year a company may have:

Dividends that shareholders did not claim
Deposits that were not taken back
Interest on debentures that remained unpaid
Other investor-related amounts still pending

Even if these amounts have not yet completed 7 years and are not ready to be transferred to the:

Investor Education and Protection Fund

The company must still report them through IEPF-2.

Why is IEPF-2 important?

It is basically a yearly disclosure.
The company informs the government:

How much unclaimed money is pending
For which financial year it relates
Names and details of the concerned shareholders

This ensures transparency and keeps a proper record before the amount eventually gets transferred to IEPF after 7 years.

When is it filed?

IEPF-2 must be filed once every financial year, within the prescribed time (generally within 60 days from the date of the Annual General Meeting).

IEPF-3 – Statement of Shares and Amounts Not Transferred Due to Legal or Statutory Restrictions

IEPF-3 is a form that a company files when it is unable to transfer shares or money to the IEPF, even though they are otherwise due, because of some legal restriction.

Normally, if dividends remain unclaimed for 7 years, the company must transfer the related dividend amount and shares to the:

Investor Education and Protection Fund

However, in some cases, the company cannot transfer them due to legal or statutory reasons.

What kind of situations?

For example:

The shares are under a court case
There is a dispute over ownership
Shares are frozen due to an order from court or authority
Regulatory restrictions prevent transfer
Any other legal stay or attachment

In such cases, the company is legally restricted from transferring those shares or amounts to IEPF.

Why is IEPF-3 required?

The government still wants to know:

Which shares/amounts were not transferred
Why they were not transferred
What is the legal reason
Case or order details (if any)

So instead of transferring them, the company files IEPF-3 to inform the authority about the restriction.

When is it filed?

IEPF-3 is filed when such a situation arises and the transfer cannot be made due to legal or statutory restrictions.

IEPF- 4 - Statement of Transfer of Shares to IEPF Demat Account

IEPF-4 is a form that a company files when it transfers shares to the demat account of the:

Why are shares transferred to IEPF?

If a shareholder does not claim dividend on their shares for 7 continuous years, the company is legally required to:

Transfer the unpaid dividend amount to IEPF, and
Also transfer the related shares to the IEPF Demat Account.

This is done to protect investor interests and maintain transparency.

What is IEPF-4 used for?

After transferring the shares to the IEPF Demat Account, the company must officially report the transfer by filing Form IEPF-4.

This form includes details such as:

Name of the shareholder
Number of shares transferred
Type of shares
Date of transfer
Company details

So basically, IEPF-4 acts as a formal intimation to the government that the shares have been transferred as per law.

When is it filed?

IEPF-4 must be filed within 30 days from the date of transferring the shares to the IEPF Demat Account.

Can the shareholder get the shares back?

Yes. Even after shares are transferred to the IEPF, the shareholder can claim them back by applying to the IEPF Authority and completing the prescribed refund process.

IEPF-5 – Refund Claim Form

IEPF-5 is the form that a shareholder or investor files to claim back money or shares that were transferred to the:

What is IEPF-5?

When dividend, shares, or other investor-related amounts remain unclaimed for 7 years, the company transfers them to IEPF as required under the Companies Act, 2013.

If later the shareholder realizes this and wants their money or shares back, they must file Form IEPF-5.

In simple words:

IEPF-5 is a refund application form.
It is filed by the investor, not the company.

What can be claimed through IEPF-5?

A person can claim:

Unpaid dividend: This is the dividend declared by a company but not claimed by the shareholder. For example, the company announced Rs.10 per share as dividend, but the shareholder did not deposit the cheque or did not update bank details. If this remains unclaimed for 7 years, it is transferred to IEPF. Through IEPF-5, the shareholder can claim that dividend amount back.

Shares transferred to IEPF: If dividend on certain shares is not claimed for 7 continuous years, the company must also transfer those shares to IEPF. The shareholder can later file IEPF-5 to get those shares transferred back to their demat account.

Matured deposits: Some companies accept fixed deposits from investors. When the deposit period ends (maturity date), the investor is supposed to take back the principal amount. If the investor does not claim it for many years, the amount is transferred to IEPF. It can be claimed later using IEPF-5.
Debentures: Debentures are a type of loan given by investors to a company. When debentures mature, the company must repay the amount. If the investor does not claim it and it remains unpaid for the specified period, it is transferred to IEPF and can later be recovered by filing IEPF-5.
Interest amounts: This includes interest on deposits or debentures that remained unpaid or unclaimed. If the investor did not collect the interest for several years, it is transferred to IEPF and can be claimed through IEPF-5.
Application money: Sometimes investors apply for shares or debentures and pay application money, but shares are not allotted or the refund is not claimed. If this money remains unclaimed for a long time, it is transferred to IEPF. The investor can file IEPF-5 to recover it.

Basically, any amount or shares that were transferred to IEPF in their name.

How does the process work?

The investor files IEPF-5 online on the MCA portal.
A copy of the form and required documents is sent to the company.
The company verifies the claim and submits a verification report to IEPF Authority.
After approval, the money is refunded and/or shares are transferred back to the claimant’s demat account.

Important Points

Proper documents (ID proof, PAN, Aadhaar, cancelled cheque, demat details, etc.) are required.
If shares are being claimed, a demat account is mandatory.
Processing may take some time as it involves company verification

IEPF-7 – Statement of Amounts Remitted under Specific Sub-Rules

IEPF-7 is a form that companies file when they transfer certain specific types of amounts to the:

What does this mean in simple words?

Normally, companies use:

IEPF-1 for transferring regular unclaimed amounts (like dividend, deposits, etc.)
IEPF-4 for transferring shares

In such cases, IEPF-7 is used to report and confirm those transfers.

Why is IEPF-7 required?

The government wants proper reporting of:

The type of amount being transferred
The legal reason for remittance
Details of the company
The amount sent to IEPF

So IEPF-7 acts as an official declaration that the company has transferred money under a special legal provision.

When is it filed?

IEPF-7 must be filed at the time of remitting such specified amounts to the IEPF, within the prescribed timeline under the applicable rule.

IEPF compliances are not a one-time task but continuous responsibilities for companies under the Companies Act, 2013. Companies must regularly track unpaid and unclaimed dividends, deposits, shares, and other investor-related amounts. Depending on the situation, they may be required to file different IEPF forms, some on a yearly basis and others when a specific event occurs (like transfer of shares or remittance of funds). Timely filing, correct reporting, proper disclosure on the company’s website, and coordination with the RTA and depositories are very important. Any delay or mistake can lead to penalties and may also create disputes with shareholders.

Therefore, companies should maintain a proper IEPF compliance calendar that tracks all due dates and events related to Investor Education and Protection Fund filings such as IEPF-1, IEPF-2, IEPF-3, IEPF-4, and IEPF-7. Having a structured system ensures smooth compliance, avoids last-minute issues, and helps the company follow legal requirements properly and efficiently.

Conclusion

IEPF compliance is not something a company does only once. It is a regular responsibility under the Companies Act, 2013. Companies must keep checking if any dividend, shares, or other investor money has remained unclaimed for a long time and take proper action within the given time.

If money or shares are not claimed for 7 years, they must be transferred to the Investor Education and Protection Fund. Along with this, companies also need to file the required forms correctly and on time. If they delay or make mistakes, penalties can apply and shareholders may raise disputes.

So overall, companies should maintain a proper system and calendar to track all IEPF related work. Regular monitoring and timely filing help avoid problems and show that the company is responsible and transparent towards its investors.

FAQ’s

Q1. What is IEPF?

Ans. IEPF (Investor Education and Protection Fund) is a government fund where unclaimed dividends, shares, and other investor-related amounts are transferred if they remain unclaimed for 7 years.

Q2. Under which law is the IEPF governed?

Ans. IEPF is governed under the Companies Act, 2013 and the rules made under it.

Q3. When does the dividend get transferred to IEPF?

Ans. If a dividend remains unpaid or unclaimed for 7 continuous years, the company must transfer it to the IEPF.

Q4. Are shares also transferred to IEPF?

Ans. Yes. If dividend on shares is not claimed for 7 consecutive years, the related shares are also transferred to the IEPF Demat Account.

Q5. Can a shareholder claim money or shares back from IEPF?

Ans. Yes. Even after transfer, the shareholder can apply to the IEPF Authority and claim the dividend or shares by submitting the required documents.

Q6. What is Form IEPF-1?

Ans. IEPF-1 is a form filed when a company transfers unclaimed money (like dividends or deposits) to the IEPF.

Q7. What is Form IEPF-2?

Ans. IEPF-2 is an annual form where companies report all unclaimed and unpaid amounts that are still lying with them.

Q8. What is Form IEPF-4?

Ans. IEPF-4 is filed when a company transfers shares to the IEPF Demat Account.

Q9. What happens if a company does not comply with IEPF rules?

Ans. The company and its officers may face penalties and legal consequences for non-compliance.

Q10. Why are IEPF compliances important?

Ans. IEPF compliances ensure transparency, protect investor interests, and prevent companies from holding unclaimed money indefinitely. Proper compliance also avoids penalties and shareholder disputes.