Once you put your money in IEPF, there is not much that you have to do except waiting. However, when it comes to withdrawal of the claim, you can expect a long legal process filled with red-tape and delays before you can lay your hand on your money. Therefore, it is best to stay prepared from beforehand. Here are 5 smart things to know about IEPF if you are an investor or wanting to be one.
1) How is the IEPF funded?
As an investor, you should know the workings behind the institution where your money is in. IEPF is a fund set up under the Ministry of Corporate Affairs to protect the interests of investors and promote awareness regarding investments. It is financially funded by unclaimed divided, refunded application money, matured company deposits and debentures and their interests are used. Trust is put in place and entrusted with the authority under subsection 4 to decide what proportion of money gets utilized.
2) IEPF can fund your research proposals
In order to apply for IEPF funding for your research proposal, you will need to submit a 2000-word outline of the research program which include your explanation of why the program is fit to be funded by IEPF. You will also need to submit a detailed resume of the researchers, their three recently written papers and letters of commitment for each of them.
3) How to redeem your IEPF claim?
One can get their IEPF claim by following some easy steps on the IEPF official website. The first step would be to download IEPF form 5 and filling in the necessary details – name, company’s name, Aadhar details, claim amount, bank account and Demat account details. You receive the acknowledgement once you upload the form, generate an SRN and click on ‘pay’. Next, u will have to submit a copy of the acknowledgement along with a copy of the claim with your signature at the Nodal Officer’s Office of the company. Now all you have to do is wait.
Point to note: Remember to mark the documents you submit with ‘claim for a refund from the IEPF authority’.
4) Keep a track of your claim
The company should be sending you a verification report to the IEPF authority along with the documents you submitted within fifteen days of receipt of the IEPF claim form. Once the verification of the entitlement is done, IEPF authority will initiate the procedure for e-payment. If there is further delay in any of the process, you can lodge an enquiry regarding the same.
5) You can hold the authority responsible for delay
The refund is expected to be disposed of by the company within 60 days from the date of receipt of the verification report, upon failure of which, as an applicant, you can demand the reason behind the delay in the written record.
With these five things now in your knowledge, you will certainly be a smarter IEPF investor than you were before.