When a person passes away, the family usually knows about the house, the bank accounts, and the fixed deposits. What they often miss are the shares.

Shares are a form of investment where a person owns a small part of a company. Every year, the company pays a portion of its profits to shareholders. This payment is called a dividend. If nobody collects the dividend for seven years in a row, the law requires the company to transfer those dividends to a government fund. And if dividends go unclaimed for seven consecutive years, the shares themselves are transferred too.

That government fund is called the IEPF, which stands for Investor Education and Protection Fund. It is managed by the Ministry of Corporate Affairs.

The money is not lost. Legal heirs of the deceased shareholder can apply to recover both the shares and the unclaimed dividends. But the process has a specific order, and skipping any step causes the claim to fail.

This blog explains how legal heirs recover unclaimed shares and dividends from the IEPF, what documents are needed, and what to watch out for.

Key Highlights

• IEPF stands for Investor Education and Protection Fund. It holds shares and dividends that went unclaimed for seven consecutive years

• The transfer to IEPF happens under Section 124 of the Companies Act, 2013

• Legal heirs must first complete share transmission with the company before filing the IEPF claim. Skipping this step is the most common reason claims fail

• The claim is filed online using Form IEPF-5 on the MCA portal. MCA stands for Ministry of Corporate Affairs

• A revised Form IEPF-5 came into effect on 6 October 2025. It requires the entitlement letter from the company to be uploaded at the time of filing

• Only one consolidated Form IEPF-5 can be filed per company per financial year

• A Will that records shareholdings prevents shares from reaching the IEPF in the first place

Why are Shares and Dividends Transferred to the IEPF?

Companies declare dividends as per their financial performance and policies. Shareholders have 30 days to claim them. Any dividend that goes unclaimed within this window moves into the company's Unpaid Dividend Account.

If a dividend remains unclaimed for seven consecutive years, the company is required by law to transfer that amount to the IEPF.

And then comes the bigger consequence. When no dividend on a shareholding has been claimed for seven consecutive years, the shares themselves are also transferred to the IEPF. The shareholder's name is removed from the company's register. The shares move into the IEPF Authority's demat account.

This commonly happens when a shareholder passes away and the family does not know the shares exist. It also happens when contact details were never updated and dividend warrants went to an old address for years. Even one claimed dividend in the seven-year period would have kept the shares with the shareholder. AasaanWill's blog on how to find out if someone left you money after they died explains how to search for assets a deceased person held that the family never knew about.

Who Can Recover Shares from the IEPF?

The original shareholder can file a claim if they are alive. When the shareholder has passed away, the nominee, legal heirs, or successors can claim.

For legal heirs, one essential step must happen before anything else: share transmission must be completed with the company. Transmission is the formal process of transferring the deceased's shares into the legal heir's name in the company's records. Until the company completes transmission and issues an entitlement letter in the legal heir's name, no IEPF claim can be filed.

This is the step most families skip, and the reason most IEPF claims by legal heirs fail at the first stage.

What Is Form IEPF-5 and Where Is It Filed?

Form IEPF-5 is the online application to recover shares and amounts transferred to the IEPF. It is filed on the MCA portal, which is the Ministry of Corporate Affairs online platform. The form is available under the IEPF services section.

A revised version of the form came into effect on 6 October 2025. The most important change for legal heirs: the entitlement letter issued by the company after transmission must now be uploaded at the time of filing. This made transmission an unavoidable first step rather than something that could be handled later.

The form asks for the claimant's details, the company's CIN (Corporate Identification Number), details of the shares and dividend amounts being claimed, and the claimant's demat account and bank account details. PAN is mandatory. PAN stands for Permanent Account Number and is issued by the Income Tax Department.

What Documents Are Needed for an IEPF Claim as a Legal Heir?

The table below shows the standard documents that are needed for a legal heir filing Form IEPF-5.

Note: Requirements may vary by company and case. Confirm the exact list with the company's Nodal Officer and the IEPF Authority before submitting.

How to Recover Shares from the IEPF as a Legal Heir

Think of this as a two-stage process. The first stage happens with the company. The second stage happens with the IEPF Authority. Both must be done in order.

Stage One: Transmission with the Company

Contact the company or its RTA, which stands for Registrar and Transfer Agent. The RTA handles share records on the company's behalf. You could find their contact details from the company's website or from the BSE or NSE listing pages.

Submit the transmission request with the death certificate, legal heir documents, identity proof, and the transmission request form. The company reviews everything, transfers the shares into the legal heir's name, and issues the entitlement letter.

This stage takes the most time. Follow up with the RTA regularly.

AasaanWill's blog on the step-by-step guide to transferring a deceased's demat account explains the transmission process in detail, including what the RTA needs and what to expect at each step.

Stage Two: Filing Form IEPF-5 Online

Once you have the entitlement letter, register on the MCA portal and fill in Form IEPF-5 carefully. Upload the entitlement letter and all supporting documents at the time of filing. Note the SRN, which stands for Service Request Number, that is generated after submission.

Print the completed form. Sign it. Send the signed printout along with all supporting documents to the company's Nodal Officer for verification.

The company verifies the documents and sends a report to the IEPF Authority. After the Authority approves, the shares are credited to your demat account and dividend amounts to your bank account.

If the Authority finds errors in the form, one resubmission is allowed within 15 days. Getting the form right the first time avoids losing the claim to a lapsed window.

One important rule: only one consolidated Form IEPF-5 can be filed per company per financial year. All folios of the same company must go into that single filing.

How to Check If Shares Have Been Transferred to the IEPF

The IEPF website has a search facility where you can search using the shareholder's name and other details. Many companies also publish a list of shares transferred to the IEPF on their own websites. The company's RTA can also confirm the status.

AasaanWill's blog on demat accounts in India, which explains the difference between nominee, legal heir, and beneficiary, covers how share ownership is structured and why keeping demat nominations current prevents these situations.

How a Will Prevents Shares From Reaching the IEPF

The reason shares reach the IEPF is almost always the same. The shareholder passed away, the family did not know the shares existed, dividends went unclaimed for seven years, and the shares transferred.

A Will that records every shareholding with the company name, folio number, and demat account details means the family knows immediately what to claim. A current nominee on the demat account means transmission can be done faster. Together, they keep shares out of the IEPF entirely.

Common Problems Families Face With IEPF Claims

These difficulties repeat across almost every IEPF claim by legal heirs. Most common problems are: 

• The family discovers old share certificates but does not know whether the shares have already moved to the IEPF. 

• The transmission stage with the company is skipped and the Form IEPF-5 filing fails. Multiple legal heirs exist but one cannot be reached for the no-objection certificate. 

• Errors in the form lead to rejection and the 15-day resubmission window lapses. 

• The company verification stage drags without follow-up.

How AasaanWill Helps

AasaanWill helps families keep investment records and succession documents organised so that shares never go untracked long enough to reach the IEPF. Our team assists with:

• Writing a Will that records all shareholdings with your demat details so the family knows what to claim

• Advising on keeping demat account nominations updated and aligned with the Will

• Explaining and assisting through the legal heir certificate and succession certificate processes in case the shares and dividends have landed in IEPF.

• Guiding heirs on the transmission process with the company and what the entitlement letter stage requires

• Helping families build a complete asset inventory so nothing goes unclaimed

A Will that lists every shareholding keeps the family in control. AasaanWill can help you write that Will today.

Conclusion

Shares and dividends unclaimed for seven consecutive years move to the IEPF under Section 124 of the Companies Act, 2013. They are not lost. Legal heirs recover them by first completing share transmission with the company, obtaining the entitlement letter, and then filing Form IEPF-5 on the MCA portal with the supporting documents.

The transmission stage with the company is the unavoidable first step and the most commonly skipped one. A complete and accurate set of documents filed the first time avoids the 15-day resubmission window running out.

A Will that records every shareholding, paired with current demat nominations, prevents shares from reaching the IEPF in the first place. AasaanWill can help you put both in place today.

Frequently Asked Questions

1. What is IEPF and what does the full form stand for?

IEPF stands for Investor Education and Protection Fund. It is a fund under the Ministry of Corporate Affairs that holds shares and dividends transferred from companies when they remain unclaimed for seven consecutive years.

2. What is MCA and what does it stand for?

MCA stands for Ministry of Corporate Affairs. It is the central government body that regulates companies in India. The Form IEPF-5 claim for unclaimed shares is filed on the MCA portal.

3. Why are shares transferred to the IEPF?

Under Section 124 of the Companies Act, 2013, dividends unclaimed for seven consecutive years are transferred to the IEPF. When no dividend on a shareholding has been claimed for seven consecutive years, the shares themselves are also transferred.

4. Can legal heirs recover shares from the IEPF after the shareholder dies?

Yes. Legal heirs, nominees, and successors of a deceased shareholder can claim. They must first complete share transmission with the company and obtain an entitlement letter before filing Form IEPF-5.

5. What is share transmission for a deceased shareholder?

Transmission is the formal transfer of a deceased person's shares into the legal heir's name in the company's records. It requires the death certificate, legal heir documents, identity proof, and the company's transmission form.

6. What is Form IEPF-5 and how is it filed?

Form IEPF-5 is the online application for recovering shares and dividends from the IEPF. It is filed on the MCA (Ministry of Corporate Affairs) portal under IEPF services. A revised version effective 6 October 2025 requires the entitlement letter to be uploaded at filing.

7. What is an entitlement letter in an IEPF claim?

An entitlement letter is issued by the company after it completes transmission of the deceased's shares into the legal heir's name. It confirms the heir's right to the shares and must be uploaded when filing Form IEPF-5.

8. What is PAN and why is it needed for an IEPF claim?

PAN stands for Permanent Account Number. It is issued by the Income Tax Department and is mandatory for filing Form IEPF-5. Without PAN, the online form cannot be submitted.

9. What is an RTA in share recovery?

RTA stands for Registrar and Transfer Agent. The RTA manages the share records of a company on its behalf. When completing transmission, legal heirs contact the company's RTA to submit documents and receive the entitlement letter.

10. What is the SRN generated after filing Form IEPF-5?

SRN stands for Service Request Number. It is the reference number generated after Form IEPF-5 is submitted on the MCA portal. Use this number to track the status of your claim.

11. How many IEPF claims can be filed for one company?

Only one consolidated Form IEPF-5 per company per financial year. All folios of the same company must be combined into that single filing.

12. How do I check if shares were transferred to the IEPF?

Search on the IEPF website using the deceased shareholder's name. Many companies also publish their IEPF transfer lists on their own websites. The company's RTA can also confirm the status.

13. What happens if there are errors in Form IEPF-5?

The IEPF Authority allows one resubmission within 15 days of rejection. If the resubmission deadline lapses, the claim becomes invalid and must be started again from the beginning.

14. How does a Will prevent shares from reaching the IEPF?

A Will that records every shareholding with the company name, folio number, and demat details means the family knows immediately what to claim. Current demat nominations allow faster transmission. Together they prevent dividends from going unclaimed for seven years.

15. Can AasaanWill help with IEPF recovery planning?

Yes. AasaanWill helps you record all shareholdings in your Will, align demat nominations, and guides your family on the requirement of heirship certificates for transmission and IEPF-5 filing process when the time comes.

Disclaimer: This article is for general informational purposes only and does not constitute legal advice. The information presented reflects the law as of the date of publication. For advice on your specific situation, please consult a qualified advocate.

Keep every investment claimable for your family. Write a Will with AasaanWill today.”