IEPFA proposes simplified documentation for investors' low-value claims

IEPFA

A committee formed by the Investor Education and Protection Fund Authority (IEPFA), has proposed simplified documentation for low-value claims to enhance ease of living for investors, an official release said on Saturday.

The Committee’s suggestions, once adopted by IEPFA, would be applicable to claims valued up to Rs 5 lakh (for physical securities), Rs 15 lakh (for demat securities), and on dividends up to Rs 10,000.

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. Through its initiatives, the IEPFA aims to ensure transparency, protect investors' rights, and promote financial literacy across the country.

The total number of unclaimed shares lying with the IEPFA is over 1.1 billion, valued about Rs 1 lakh crore, while the total value of unclaimed dividends stands at about Rs 6,000 crore.

The IEPFA Committee reviewed existing procedures and recommend reforms for simplifying documentation in low value claim cases, said the release. This initiative was expected to significantly reduce timelines, improve transparency, and provide hassle-free services to investors, it said.