IEPFA Plans Simplified Rules for Low-Value Investor Claims

The Investor Education and Protection Fund Authority (IEPFA), under the Ministry of Corporate Affairs (MCA), has proposed easier documentation norms for small-value investor claims. Once approved, these reforms will make the process faster, transparent, and more convenient for investors.

Simplified Claim Process Proposed

The IEPFA had set up a special Committee to review current procedures and suggest improvements for handling low-value claims. The recommendations aim to reduce delays and provide a hassle-free experience to investors.

According to the proposal, simplified rules would apply to claims up to ₹5 lakh for physical securities, ₹15 lakh for demat securities, and ₹10,000 for unpaid dividends.

Broad Representation in the Committee

The Committee included representatives from:

• Ministry of Corporate Affairs (MCA)

• Investor Education and Protection Fund Authority (IEPFA)

• Securities and Exchange Board of India (SEBI)

• Institute of Chartered Accountants of India (ICAI)

• Institute of Cost Accountants of India (ICMAI)

• Institute of Company Secretaries of India (ICSI)

• Federation of Indian Chambers of Commerce and Industry (FICCI)

• PHD Chamber of Commerce and Industry (PHDCCI)

• Confederation of Indian Industry (CII)

• Registrar Association of India (RAIN)

This wide representation ensured that the suggestions addressed the needs of all stakeholders. The Committee has already submitted its report to the IEPFA for consideration.

About IEPFA

Established on September 7, 2016, the IEPFA manages the Investor Education and Protection Fund under the Ministry of Corporate Affairs. Its primary role is to safeguard investor rights by enabling refunds of unclaimed dividends, matured deposits, debentures, and shares. The Authority also works to promote financial literacy and build trust in the securities market.

If these recommendations are adopted, investors with smaller claims will benefit from a quicker, more transparent process. This move is expected to enhance the ease of living for retail investors and strengthen overall trust in India’s financial ecosystem.

(Release ID: 2164368)