The Investor Education and Protection Fund Authority (IEPFA), under the Ministry of Corporate Affairs, has invited public comments on proposed amendments to the IEPFA (Accounting, Audit, Transfer and Refund) Rules, 2016. The proposed changes aim to simplify, expedite, and strengthen the refund mechanism for investors whose unclaimed amounts have been transferred to the Investor Education and Protection Fund under the Companies Act, 2013.
The proposal, released on January 28, 2026, seeks to make the refund framework more investor-centric by easing procedural requirements, reducing disposal timelines, and improving overall efficiency.
Objective: Faster and More Efficient Investor Refunds
The proposed amendments focus on improving the processing of claims relating to:
- Unclaimed dividends
- Shares (physical and dematerialised)
- Matured deposits
- Debentures
- Other eligible amounts transferred to IEPF
By rationalising documentation and clarifying responsibilities of stakeholders, the Authority aims to reduce friction and delays that investors often face while seeking refunds.
Streamlined Mechanism for Low-Value Claims
A key feature of the proposed reforms is the introduction of a simplified and time-bound mechanism for low-value claims, based primarily on verification by the concerned company. Under the draft amendments, low-value claims are defined as:
- Physical shares with a market value of up to ₹5 lakh
- Dematerialised shares with a market value of up to ₹15 lakh
- Dividend claims up to ₹10,000
For these categories, IEPFA proposes a reduced disposal timeline of 30 days, relying solely on the company’s verification report, without additional layers of scrutiny by the Authority. This is expected to significantly accelerate the refund process and provide quicker relief to investors.
Procedural Rationalisation and Enhanced Transparency
Beyond low-value claims, the proposed amendments also seek to:
- Provide greater procedural clarity in the refund process
- Rationalise documentation requirements to reduce compliance burden
- Clearly delineate responsibilities of companies involved in verification
- Introduce a formal appeal mechanism for claimants in cases where refund applications are rejected
These measures are intended to enhance transparency, accountability, and consistency in the administration of refunds.
Public Consultation and Stakeholder Participation
IEPFA has encouraged all interested stakeholders, including investors, companies, professionals, and market participants, to review the draft amendments and submit their comments and suggestions within the timeline specified in the consultation notice.
The consultation paper detailing the proposed amendments is available on the official website of the Ministry of Corporate Affairs/ IEPFA. The Authority has stated that stakeholder feedback will play a critical role in finalising the revised framework.
Role of IEPFA
IEPFA is responsible for administering the Investor Education and Protection Fund, including processing refunds of unclaimed dividends, shares, matured deposits, debentures, and other amounts transferred to the Fund. In addition, the Authority undertakes nationwide investor education and awareness initiatives to promote informed financial decision-making, protect investor interests, and prevent financial fraud.
Conclusion
The proposed amendments to the IEPFA Rules mark a significant step towards simplifying and accelerating the refund process, particularly for small and low-value claims. If implemented, the reforms are expected to reduce procedural bottlenecks, enhance investor confidence, and make the refund framework more responsive and efficient.
Source: IEPFA Draft Amendment Rules for Fast-Track Low-Value Investor Refunds (28/01/2026)