Recovery of Shares from IEPF, Issue of Duplicate Share Certificate, and Reactivation of Inoperative Bank Accounts

Introduction

In today’s fast-paced financial world, it’s easy for investors to lose track of old investments, share certificates, or even inactive bank accounts. Thousands of crores worth of unclaimed dividends, shares, and matured deposits lie unclaimed with companies or have been transferred to the Investor Education and Protection Fund (IEPF). Similarly, many investors face challenges with the issue of duplicate share certificates or the reactivation of inoperative bank accounts due to outdated contact details or lost documentation.

This comprehensive guide explains everything you need to know about recovery of shares from IEPF, the issue of duplicate share certificates, and reactivating inoperative bank accounts. Whether you’re an individual investor, a nominee, or a legal heir, this article will help you understand the procedures, documentation, and expert tips for reclaiming your rightful assets.

Understanding IEPF and Its Role

The Investor Education and Protection Fund (IEPF) was established by the Government of India under the Companies Act, 2013. Its purpose is to protect investors’ interests and promote financial literacy.

When dividends or shares remain unclaimed for seven consecutive years, they are transferred by companies to the IEPF Authority. Once shares are moved, the investor can’t trade or claim them directly through the company — they must apply to the IEPF for recovery of shares.

Recovery of Shares from IEPF: Step-by-Step Process

Recovering shares from the IEPF can seem complex, but with proper documentation and professional guidance, it’s completely achievable. Here’s how the process works:

Step 1: Identify the Unclaimed Shares

Check the company’s investor section or the IEPF website (www.iepf.gov.in) to confirm if your shares have been transferred. You can search using your name, folio number, or demat account details.

Step 2: Collect Required Documents

You’ll need:

• Copy of PAN card and Aadhaar card
• Client Master Report (if demat account exists)
• Cancelled cheque or bank passbook copy
• Share certificate(s) or duplicate proof if lost
• Indemnity bond and advance receipt (in prescribed format)
• IEPF Form-5 acknowledgment

Step 3: File Form IEPF-5

Fill out the online Form IEPF-5 available on the IEPF website. After submission, print the acknowledgement and send it, along with the required documents, to the Nodal Officer of the company that originally issued the shares.

Step 4: Company Verification

The company verifies the claim and sends a verification report to the IEPF Authority within 30 days. The IEPF then processes your request.

Step 5: Refund Approval

Once approved, the shares are credited to your demat account, and any unpaid dividends are directly transferred to your linked bank account.

Tip: Always ensure your KYC details are updated in your demat and bank accounts to avoid future claim complications.

Issue of Duplicate Share Certificate

Losing a physical share certificate can be stressful, but the issue of a duplicate share certificate is a well-established process under the Companies Act, 2013.

Common Reasons for Requesting Duplicate Share Certificates

• Misplacement of original certificates
• Theft or loss due to fire, flood, or shifting houses
• Torn, defaced, or damaged certificates

Step-by-Step Process

Step 1: Notify the Company or Registrar

Immediately inform the company’s Registrar and Share Transfer Agent (RTA) in writing about the loss or damage. Include details like your name, folio number, and certificate number (if available).

Step 2: Lodge an FIR

File a First Information Report (FIR) or police complaint mentioning the loss of the share certificate. Keep a copy for submission.

Step 3: Provide Supporting Documents

The company usually requires:

• Copy of FIR
• Indemnity bond and affidavit (in the company’s prescribed format)
• Self-attested ID and address proofs
• Newspaper advertisement (for public notice, if required)
• Original torn/damaged certificate (if applicable)

Step 4: Company Verification

After receiving your application and documents, the company verifies the authenticity of your claim. Once satisfied, it cancels the lost certificate and issues a duplicate share certificate in your name.

Step 5: Dematerialisation

It’s strongly recommended to dematerialise the duplicate certificate immediately to avoid physical handling risks in the future.

Pro Tip: Always maintain a digital backup of your share certificate details, folio number, and correspondence with the company.

4. Reactivation of Inoperative Bank Accounts

Bank accounts become “inoperative” if there’s no transaction for two consecutive years (other than interest or bank charges). Many investors face delays in receiving dividends or refunds because their bank accounts have become inactive.

Common Causes

• Not updating KYC after an address or number change
• Long-term inactivity or migration abroad
• Joint account holder’s death or legal complications

Process for Reactivation

Step 1: Contact the Bank

Visit the branch or write to the bank requesting reactivation of your inoperative account. Provide valid identification and address proof.

Step 2: Complete KYC Verification

Submit updated KYC documents such as:

• PAN and Aadhaar
• Passport-size photograph
• Recent utility bill or rental agreement

Step 3: Sign Re-KYC Forms

Most banks will ask you to sign Re-KYC or Inoperative Account Activation Forms.

Step 4: Initial Transaction

After verification, the bank reactivates your account, and you can perform transactions like deposits, withdrawals, or receive refunds (including dividends or IEPF recoveries).

Expert Tip: Keep all financial accounts active by making at least one transaction (like a small deposit) every few months.

Importance of Professional Assistance

While individuals can manage these processes independently, engaging a professional consultant or financial documentation expert can save considerable time and effort. They assist in:

• Filing accurate IEPF-5 forms
• Drafting indemnity bonds and affidavits correctly
• Coordinating with company registrars and nodal officers
• Ensuring faster approval and error-free documentation

Professionals familiar with IEPF recovery, duplicate share certificate issuance, and bank reactivation can help investors and heirs reclaim dormant assets efficiently.

Preventive Measures for the Future

To avoid such complications:

1. Dematerialise all physical shares immediately.
2. Update contact and bank details with all companies and depositories.
3. Link PAN, Aadhaar, and bank account with your demat account.
4. Track dividends and bonuses regularly using the IEPF and company websites.
5. Nominate beneficiaries for all financial assets.

Prevention is always better than recovery — staying proactive ensures your wealth remains accessible and secure.

Conclusion

The recovery of shares from IEPF, the issue of duplicate share certificates, and the reactivation of inoperative bank accounts are crucial steps in safeguarding your financial legacy. Though the procedures may appear lengthy, they are straightforward when approached methodically and with proper documentation.

By understanding these processes and seeking timely professional help, you can reclaim your rightful investments and ensure your financial records are up to date. Remember, every unclaimed share or inactive account is a part of your wealth — don’t let it stay unutilized.