The Investor Education and Protection Fund (IEPF) Demat account is handled by the Ministry of Corporate Affairs (MCA) in India. The IEPF is a government-run fund that is responsible for protecting the rights and interests of investors, as well as educating them about the Indian capital markets.
How Investor Education and Protection Fund (IEPF) Demat account receives shares? Does MCA buy with the fund received under IEPF?
No, IEPF shares are not brought with money by Govt. IEPF holds the shares as a custodian to be later distributed to correct legal investors/heirs once the proper KYC/legal/etc process is completed.
Shares are transferred to the Investor Education and Protection Fund (IEPF) in India if they remain unclaimed by the shareholder for a period of 7 years after the due date of transfer or 7 years from the date of maturity of fixed deposits.
The transfer of shares to the Investor Education and Protection Fund (IEPF) in India is governed by the provisions of the Companies Act, 2013 and the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016.
Section 124 of the Companies Act, 2013 provides for the establishment of the IEPF and the transfer of unclaimed dividends and matured deposits to the Fund.
Rule 2(1) (h) of the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 defines the “unpaid matured deposit” as a deposit which remains unpaid or unclaimed for a period of 7 years from the date of maturity.
Rule 5 of the said Rules lays down the procedure for transfer of shares to the IEPF.
You may refer to the official website of the Ministry of Corporate Affairs, Government of India for more details: Home (iepf.gov.in)
Reply from ChatGPT 
Has anyone managed to file an IEPF-5 webform successfully? I’m unable to even login using the account created on the MCA website to access and fill the form. Any guidance would be much appreciated. Thank you
There will be a change in procedure in reclaiming IEPF shares/dividend going forward, hope it is a better process. Thank you.
