IEPFA Proposes Faster Refunds, 30-Day Timeline for Small Investor Claims

A key highlight of the draft rules is the introduction of a streamlined, fast-track mechanism for low-value claims, designed to reduce paperwork and delays.

In a move aimed at making India’s investor protection framework more efficient and citizen-friendly, 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 reforms seek to simplify procedures, shorten timelines, and strengthen the refund mechanism for investors.

The proposed amendments focus on expediting claims related to unclaimed dividends, shares, matured deposits, debentures, and other eligible amounts transferred to the Investor Education and Protection Fund under the Companies Act, 2013.

Fast-track refunds for low-value claims

A key highlight of the draft rules is the introduction of a streamlined, fast-track mechanism for low-value claims, designed to reduce paperwork and delays. Under the proposal, such claims will be processed within 30 days, based solely on verification by the concerned company.

Low-value claims have been 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 of up to ₹10,000

By relying on company verification reports and eliminating multiple layers of scrutiny, the proposed system aims to deliver quicker, hassle-free refunds to a large number of small investors.

Greater clarity, transparency, and investor safeguards

Beyond faster timelines, the amendments propose:

• Clearer procedural guidelines and rationalised documentation requirements

• Defined responsibilities for companies involved in claim verification

• A formal appeal mechanism for claimants in cases of rejection, strengthening transparency and accountability

Together, these measures are intended to make the refund process more predictable, transparent, and investor-centric.

Public consultation open

IEPFA has invited stakeholders, investors, companies, professionals, and the public to review the draft amendments and submit comments and suggestions within the prescribed timeline mentioned in the consultation notice. The consultation paper is available on the official website of the Ministry of Corporate Affairs / IEPFA.

Call to action: investors urged to engage

With millions of investors affected by unclaimed financial assets, IEPFA has encouraged early participation in the consultation process to help shape a more responsive, efficient, and trust-based refund framework. The proposed reforms mark a significant step towards improving ease of compliance while safeguarding investor interests.

IEPFA continues to play a central role in administering the Investor Education and Protection Fund, processing refunds, and undertaking nationwide investor education initiatives to promote informed financial decision-making and prevent financial fraud.