MCA Proposes IEPFA Rule Amendments for Faster Investor Refunds

Press Release; Dated: 29.01.2026

The Ministry of Corporate Affairs (MCA), through the Investor Education and Protection Fund Authority (IEPFA), has invited public comments on the proposed amendments to the IEPFA (Accounting, Audit, Transfer and Refund) Rules, 2016. The proposed changes are aimed at improving the efficiency, transparency, and investor-friendliness of the IEPF refund framework.

1. Objective of the Proposed Amendments

The key objective of the amendments is to simplify existing procedures, reduce documentation burdens, and significantly expedite the processing of refund claims. The focus is particularly on low-value claims, which currently face delays despite their relatively straightforward nature.

2. Faster Disposal Timeline for Refund Claims

A major reform proposed under the amendments is the introduction of a defined timeline for claim disposal. Refund claims—especially low-value ones—are proposed to be processed and disposed of within 30 days, subject to verification by the concerned company. This is expected to bring predictability and accountability into the refund process.

3. Definition of Low-Value Claims

For the purpose of fast-track processing, the amendments define “low-value claims” as follows:

• 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

These categories are intended to cover the majority of small investors seeking refunds from the IEPF.

4. Simplification and Rationalisation of Procedures

The proposed amendments also seek to bring enhanced procedural clarity by:

• Rationalising documentation requirements
• Eliminating repetitive and unnecessary compliance steps
• Clearly defining the roles and responsibilities of companies involved in verification and processing

This is expected to reduce friction for both investors and companies.

5. Introduction of a Formal Appeal Mechanism

To further strengthen investor protection, the amendments propose the introduction of a formal appeal mechanism. This will allow claimants to challenge the rejection of refund claims through a structured process, ensuring greater transparency, accountability, and fairness in decision-making.

6. Towards a More Investor-Friendly Refund Framework

Overall, the proposed amendments reflect MCA’s intent to make the IEPF refund process faster, more transparent, and aligned with investor-centric governance. By streamlining procedures and introducing clear timelines and safeguards, the changes aim to restore investor confidence and improve ease of compliance.

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