MC EXCLUSIVE AI to fast-track unclaimed share refunds; small claims to be processed in 7 days

Since the launch of IEPFA integrated portal, 35,000 claims have been processed.

• IEPFA to launch AI-powered feature for faster low-value share claim processing
• Claims below Rs 5 lakh may be processed in 6-7 days, down from one month
• AI will expedite share transfers after manual approval on the integrated portal

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The Investor Education and Protection Fund Authority (IEPFA) is likely to launch a new feature on its integrated portal to expedite the process of refunding or returning shares of low-value claims, a government official told Moneycontrol on condition of anonymity.

The feature is expected to be launched in the next two months, which would allow claims below Rs 5 lakh per investor to be processed (transferred back to the claimant) using technology such as AI, the official added.

IEPFA is responsible for managing the Investor Education and Protection Fund (IEPF), which focuses on safeguarding investor interests by facilitating the refund of shares, unclaimed dividends, and matured deposits/debentures.

The organisation, through its initiatives, also plans to ensure transparency, protect investors' rights, and promote financial literacy across the country.

IEPFA reforms have been a core focus area of the government, with the direct involvement of the PMO.

Sanjeev Sanyal, Member of the Prime Minister’s Economic Advisory Council, had told Moneycontrol earlier that he was working with the Ministry of Corporate Affairs (MCA) to smoothen the process of receiving the rightful shares.

The total number of unclaimed shares lying with the IEPFA is around 1 billion, worth about Rs 1 lakh crore. The total value of unclaimed dividends stands at Rs 6,000-7,000 crore.

Unclaimed shares of low value (below Rs 5 lakh) form around 85 percent. "The processing of claims through AI would significantly expedite the transfer process."

The official added that, at present, all claims (of shares)—including low value—take around one month to be processed, after approval. With the new feature, this time is likely to be reduced to 6-7 days.

How the process works

To be sure, the transfer of shares to the claimant happens only after the claim is approved. The approval is done manually, by IEPFA officials, on the integrated portal.

"This manual intervention for approval will not change. After the approval, the way the shares are processed (or returned to the rightful owner) will change," the official said.

Typically, once the IEPFA examines a claim from an investor, the authority forwards the request to the company (the issuer of shares) for a review. The company verifies the details, and then sends its report to IEPFA.

On receiving the report, the final details are verified once again by the IEPF authorities, who, then, issue a sanction order. After this stage, the shares are credited back to the investor’s demat account.

"The AI will be used in the final stage, and there will be very limited manual intervention," the official explained.

The integrated portal

The IEPFA had launched its Integrated Portal--a unified digital platform designed to streamline claim processes and enhance accessibility for both investors and companies -- in September.

The portal integrates key stakeholders—including depositories and the Public Financial Management System (PFMS)—to provide a seamless and efficient experience.

The development of the portal was first announced by Finance Minister Nirmala Sitharaman in her 2023 Budget Speech.

Since its launch, 35,000 claims have been processed, and about 190 million shares have been transferred to their rightful owners, government sources said.

Any investor who wants to claim shares will first have to fill IEPF- Form 5, to upload all the relevant details to start the process. "Going forward, voice-assisted forms will be available for ease of investors."

In September 2025, at the 9th Foundation Day of IEPFA, the Authority’s CEO Anita Shah Akella had said that the organisation aims to take small steps to refund the shares and dividends within 60 days for larger claims and 30 days for low-value claims. "We shall use the dual 'astra' (weapon) of technology and rules to achieve this," she had said.