How NRIs Can Recover Shares from IEPF

Investing in India’s stock markets has long been a favourite of NRIs keen to stay connected with India’s growth story. But over time, due to changed addresses, missed communications, or lost certificates, many NRIs find that some of their investments have become untraceable. Worse still, dividends often go unclaimed for years. As of 2025, the scale of unclaimed wealth is staggering. The IEPF now holds ₹82,199 crore invested across 1,561 companies. These figures underscore the growing significance of forgotten dividends and shares.

Under Indian law, any dividend left unclaimed for seven years must be handed over to the Investor Education and Protection Fund (IEPF). This rule often extends to the original shares linked with those dividends. In effect, what was once your asset can become dormant under the custody of the government until you reclaim it through a formal process. In this blog, we will guide you through the process of recovering your shares and unclaimed dividends from the IEPF, step by step, and provide all relevant details.

IEPF Rules and Their Impact on NRIs

The Government of India created the IEPF under the Companies Act, 2013, as a statutory fund. Its role is to safeguard unclaimed dividends, matured debentures, and shares until their rightful owners claim them.

The 7-Year Unclaimed Dividend Rule

One of the key triggers for transfer to IEPF is the seven-year rule: if dividend(s) on a share remain unpaid or unclaimed for seven consecutive years, the company must transfer the dividend amount to IEPF. Moreover, if the dividends remain unclaimed, the shares themselves may also be transferred to IEPF along with the details of such transfers.

This means that after seven years of inactivity, not only do you lose the dividends, but your ownership of the shares can be “temporarily forfeited” until you reclaim them.

Why NRIs Often Lose Track Of Shares

NRIs face unique disadvantages in this system:

• Change of address/overseas relocation: Corporate communications, dividend warrants, or notices often go to old Indian addresses.
• Lack of awareness or neglect: Many don’t know such transfers happen, or overlook small dividend amounts, thinking it’s not worth claiming.
• Time zone and distance delays: Obtaining notarizations, signing documents, or receiving mail across borders can be slow.
• Lost physical share certificates: Many older investments were in physical form; certificates may be misplaced over decades.
• No or inactive Indian mobile number: OTPs or communication may fail when only foreign numbers are registered.

To give scale to the issue: as of recent reports, over ₹11,000 crore worth of Reliance shares alone are lying unclaimed in IEPF, calling attention to the sheer volume of dormant assets.

Who Qualifies as an NRI?

Before understanding the recovery process, one must know who qualifies as an NRI (Non-Resident Indian). The classification matters because certain documentation and identification rules differ.

Under the Income Tax Act

You are an NRI if:

You do not reside in India for 182 days or more in a financial year; or

You stay in India for fewer than 60 days in the year and your total stay during the prior 4 years is less than 365 days.

Under FEMA (Foreign Exchange Management Act) Guidelines

Under FEMA, an NRI is someone who resides outside India for employment, business, or other purposes, indicating an indefinite or extended foreign stay. In effect, many Indian passport holders working abroad, students overseas, or businesspersons abroad qualify as NRIs for investment and tax purposes.

Typical NRI Profiles

• Indian professionals working in the UAE, US, UK, Singapore, etc.
• Students pursuing education outside India.
• Entrepreneurs running or managing business operations from abroad.
• Persons who inherited shares from relatives in India but reside outside.
• Due to this status, NRIs often need to use passport/OCI/PIO documentation instead of Aadhaar in claims and provide foreign address proofs, which adds complexity.

The Transfer Flow – Dividends and Shares

The law mandates a sequence:

• Dividends unclaimed for seven years are moved to the IEPF (unpaid dividend account).
• After that, shares for which dividends remain unclaimed for that period may also be transferred into an IEPF-linked DEMAT account.
• The company must report these transfers to the IEPF Authority.

Thus, your shares may not physically vanish; they just move into a custodian account under IEPF, retrievable via the claim process.

IEPF Claim Process for NRIs to Recover Shares

Here is a step-by-step guide, adapted for NRIs, to reclaim your shares (and dividends) from IEPF:

Step 1: Verify Current Share Status

This step helps confirm whether the shares have indeed moved to IEPF or they still remain with the company.

• Go to the official IEPF website and use the “Unclaimed Shares / Dividends” search facility (you can search by name, PAN, or folio number).
• Alternatively, approach the Registrar & Transfer Agent (RTA) of the company with your folio/PAN details to check whether shares have been transferred.

Step 2: Collect and Prepare Documents

NRIs must prepare and/or get documents notarised abroad for the IEPF claim process. Along with this, NRIs may need notarization or attestation by Indian embassy / consulate or local notary in foreign country. Key documents include:

Step 3: File the Online Form IEPF-5

Visit the MCA / IEPF portal and fill out Form IEPF-5.

• Provide details such as shareholder name, PAN, shareholding details, company name & CIN, folio number, dividend amount, Indian bank account, demat account etc.
• After submission, an SRN (Service Request Number) is generated.
• OTP is typically sent to an Indian mobile number, so you will need a relative’s active number or prior arrangement.

Step 4: Dispatch Physical Documents to Nodal Officer

• Print the filled IEPF-5 form, sign it, and affix all supporting documents.
• Pack them carefully and courier them to the IEPF Nodal Officer or Registrar / the company’s nodal office (address given by company / RTA).
• Label the envelope properly (“Claim for refund from IEPF Authority”) and include the SRN for reference.

Step 5: Company Verification & Forwarding

• When the documents arrive, the company (or its RTA) reviews them. They prepare a verification report within a stipulated timeline (often 15–30 days) and forward it to the IEPF Authority along with the verification and all your submitted papers.
• They check conformity of your claim with their records (folio numbers, share certificates, signatures etc.).

Step 6: IEPF Authority Processing & Release

• Once the IEPF Authority receives the verification report, they scrutinize the claim. If satisfied, they pass the sanction order and arrange for the shares to be credited to your demat account and unclaimed dividends (if any) to your Indian bank account.
• Claims are supposed to be decided within 60 days of receiving the verification from the company.
• From start to finish, the process often takes 3 to 6 months, though in complex cases it may take longer.

Why Recovering Shares Can Be Tricky for NRIs

Recovering shares and dividends from the IEPF can be more challenging for NRIs than for investors living in India. Here are the main hurdles:

Distance & Communication

Coordinating with companies and RTAs from abroad can be tricky. Time zone differences, slow courier deliveries, or postal delays can all slow down the process.

Signature Differences

Sometimes your old signature on share certificates doesn’t match your current one or the records the company has. This can lead to requests for extra documents or even temporary rejections.

Foreign Notarization & Legal Requirements

Documents like indemnity bonds or affidavits often need to be notarized or apostilled abroad, or attested by an Indian consulate. Mistakes in this process can delay your claim.

Inheritance & Succession Issues

If the original shareholder has passed away, additional steps like obtaining a succession certificate, legal heir certificate, or probated will may be required. These can be complicated depending on where you live.

OTP & Indian Mobile Number Problems

The IEPF form usually sends OTPs to an Indian mobile number. Many NRIs don’t have an active Indian SIM, so you may need a trusted relative’s number to complete the verification.

Because of these extra challenges, claims from NRIs can take longer and often require more supporting documents. This is where a reliable Unclaimed Investment Recovery Company like Crystal Peak Wealth can help. We guide NRIs through each step, handle paperwork, and make the IEPF claim process much smoother. So your shares and dividends are returned safely and efficiently.

Why NRIs Trust Crystal Peak Wealth

NRIs trust Crystal Peak Wealth because it makes the complex process of recovering unclaimed shares and dividends simple and reliable. Your information is fully encrypted and secure, giving you peace of mind throughout the process. We manage everything, from documentation and notarization to cross-border coordination, guiding you at every step. With an average of 20+ years of experience, the team makes the process seamless.  With us, professional SEBI-registered teams take care of all paperwork. Trusted by more than 2,400 clients nationwide, we make the process hassle-free.

Conclusion

Recovering shares and dividends from the IEPF is a lot more than paperwork. It is about reclaiming your rightful financial legacy, especially for NRIs who may have lost track of their investments. In the entire process, NRIs may need extra help with notarization, power of attorney, OTPs, or coordinating from abroad. A reliable Unclaimed Investment Recovery Company like Crystal Peak Wealth can make the process smoother, ensuring your shares and dividends are recovered safely and efficiently. For any queries or assistance with your IEPF claim, reach out to us today.