Public comments invited on IEPFA rules amendments to speed up refunds for Investors

The Ministry of Corporate Affairs has invited public comments on the proposed amendments to the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 , aimed at simplifying and expediting refunds to investors.

The proposed changes focus on reducing procedural hurdles, improving efficiency, and ensuring faster processing of claims related to unclaimed dividends, shares, matured deposits, debentures, and other eligible amounts transferred to the Investor Education and Protection Fund (IEPF) under the Companies Act, 2013.

A key feature of the amendments is a streamlined mechanism for low-value claims , which will rely on verification by the concerned company. Low-value claims have been defined as physical shares up to ₹5 lakh, dematerialised shares up to ₹15 lakh, and dividend claims up to ₹10,000. For these claims, the authority proposes a reduced disposal timeline of 30 days , enabling quicker and hassle-free refunds.

The amendments also seek to provide procedural clarity, rationalised documentation requirements, and clear responsibilities for companies . Additionally, a formal appeal mechanism will be introduced for claimants in case of rejection, ensuring transparency, accountability, and investor protection.

Under the existing 2016 rules, refund claims often involved multiple verification steps, extensive documentation, and lacked a fixed timeline or formal appeal process. The new amendments aim to make the process faster, simpler, and more investor-friendly , particularly benefiting small investors.

IEPFA has encouraged all stakeholders to review the proposed amendments and share their suggestions within the prescribed timeline. The consultation paper is available on the official websites of the Ministry of Corporate Affairs and IEPFA.