The Role of Indemnity Bonds in the IEPF Claim Process

For the purpose of claiming shares and/or dividend money, an indemnity bond (original) must be executed on non-judicial stamp paper according to the format provided in Annexure I. The claiming process of IEPF totally depends on the indemnity bond. Thus, make sure you read this before claiming.

Indemnity Bond: An overview

An indemnity bond serves as insurance for the lender in the event that the borrower breaches the conditions and terms of the loan. It is mostly utilized in the loan and mortgage business. A stamp paper with a monetary value that varies from state to state is used to generate an indemnity bond. Particularly, it is written to meet one's demands and legal requirements and comes in a variety of forms.

An indemnity bond is a promise made by someone signing a contract to cover losses in the event that the agreement is broken. This means that the lender will have every right to collect losses and damages resulting from a defaulting party if a person is required to fulfill contractual obligations but chooses not to do so. Continue reading to learn more about the structure or format of indemnity bond for claiming shares from IEPF.

What is IEPF form 5?

Every person who has had an unclaimed or underpaid payment transferred to the IEPF by the corporation may request a return from the IEPF authority. The claimant must submit form IEPF 5 indemnity bond together with the required supporting documentation in order to claim such an amount.

Following the instructions below will allow any stakeholder of the business whose shares, unclaimed dividend funds, or unpaid dividend amount have been transferred by the company to IEPF Claim their shares or dividend funds.

How to claim shares or dividend money that has been transferred to the IEPF?

The shareholder must submit indemnity bond for IEPF form 5 and the supporting documents listed below-

1. On the IEPF Authority website, www.iepf.gov.in/IEPFA/refund.html, download the IEPF-5 form. The instruction packet contains instructions on how to fill out the form.
2. After filling out the form, save it to your computer and, following the instructions, upload the correctly completed form to the IEPF Authority's website using the upload link. An acknowledgment or challan with the Service Request Number will be generated following a successful upload (SRN). The SRN created needs to be referred to in order to trace the progress of the claim for a credit of shares or for a refund of the dividend amount, as the case may be.
3. The Nodal Officer's Document Submission List

• A self-attested copy of Form IEPF-5 is required (if there are joint holders, all of the holders must sign Form IEPF-5).
• Receiving of an acknowledgment (Challan generated for filing form IEPF 5 in MCA Portal).
• Completion of an indemnity bond is necessary when shares or dividend payments made to the IEPF Authority have a nominal value greater than Rs. 10,000. The indemnity bond must be executed on non-judicial stamp paper, and the value of the stamp paper must comply with the state's stamp law where the shareholder resides. For claiming dividends and shares, a separate indemnity bond must be obtained. In case of joint holding, Indemnity Bond is to be signed by all the holders).
• Provide the Corporation an advance receipt for the receipt of shares or a dividend, as applicable. (Correctly completed in accordance with the format specified in the Annexure, with the applicable dividend amount and share count clearly filled in. The receipt must be signed by all joint owners in the case of a joint holding.
• The original share certificate, the dividend warrant, and the letter from the registrar and transfer agent constitute proof of entitlement.
• For claiming an unpaid or unclaimed dividend, you will need a dividend warrant or a self-attested copy of your share certificate, as well as a letter from the registrar and transfer agent.
• Original share certificates, letters from the company's registrar and transfer agent, and any unpaid or unclaimed dividends on those shares that were transferred to the IEPF must be included (in case shares are held in Physical form).
• If shares are kept in demat form, and an unpaid/unclaimed dividend from the IEPF is transferred, a letter from the registrar and transfer agent is required.

According to Rule 7(8) of the IEPF Regulations, 2016, in the event of transmission, the applicant, who is the successor or legal heir, shall make sure that the transmission process is finished before filing any claims. To double check, search for how to fill indemnity bond for IEPF before submitting.

In addition, if the request for transfer or transmission is received after the transfer of IEPF shares to the IEPF Authority, the company shall issue a letter of authorization in conformity with Rule 7(9) of the IEPF Regulations, 2016.

Indemnity Bond | IEPF 5 Indemnity Bond | Indemnity Bond For IEPF Form 5