If you are filing an IEPF claim, applying for duplicate share certificates, or completing a transmission of shares after the death of a shareholder, you will almost certainly need to submit an indemnity bond. This document is one of the most frequently requested — and most frequently done incorrectly — parts of the share recovery process.

This guide explains what an indemnity bond for shares is, when you need one, the correct format (including a ready-to-use template), stamp paper requirements, notarization process, and the common mistakes that lead to rejections.

What Is an Indemnity Bond for Shares?

An indemnity bond is a legally binding document in which the person making the claim (the "obligor" or "claimant") promises to protect the company, IEPF Authority, or registrar from any financial loss or legal liability that may arise from processing the claim.

In simpler terms, you are telling the company: "I am the rightful owner of these shares. If anyone else comes forward with a claim, I will bear all the responsibility and costs."

The indemnity bond serves as a safety net for the company or authority processing your request, especially when original documents (like share certificates) are lost or when shares are being claimed from IEPF.

When Do You Need an Indemnity Bond?

1. IEPF Form 5 Claims

When filing IEPF Form 5 to recover shares and dividends transferred to the Investor Education and Protection Fund, an indemnity bond is a mandatory attachment. The IEPF Authority requires this as part of the verification process.

2. Lost or Damaged Share Certificates

If your original physical share certificates are lost, stolen, misplaced, or damaged beyond recognition, you need to submit an indemnity bond when applying for duplicate share certificates from the company's RTA.

3. Transmission of Shares (After Death)

When shares are being transmitted from a deceased shareholder to legal heirs, an indemnity bond is required — particularly when:

  • There is no nominee registered
  • The value of shares exceeds a certain threshold
  • A succession certificate is not available

4. Duplicate Dividend Warrants

If original dividend warrants have expired or been lost, companies may require an indemnity bond before issuing replacement payments.

Stamp Paper Requirements

An indemnity bond must be executed on non-judicial stamp paper. The value of stamp paper varies by state and by the purpose of the bond:

PurposeTypical Stamp Paper ValueNotes
IEPF Form 5 ClaimRs 100 - Rs 200Check IEPF guidelines for current requirements
Lost Share Certificate (value up to Rs 1 lakh)Rs 100Varies by state
Lost Share Certificate (value Rs 1-5 lakh)Rs 200 - Rs 500Some companies specify percentage of value
Lost Share Certificate (value above Rs 5 lakh)Rs 500 - Rs 1,000+May require 3-5% of share value
Transmission of SharesRs 100 - Rs 500Depends on company and share value
State-wise variation: Stamp duty rates differ significantly across states. For example, Maharashtra, Delhi, and Karnataka have different stamp duty schedules. Always check your state's Stamp Act or consult a local stamp vendor for the correct value.

Indemnity Bond Format for IEPF Form 5

Below is a standard format that is widely accepted for IEPF Form 5 claims. This should be typed or printed on non-judicial stamp paper of appropriate value.

INDEMNITY BOND (On Non-Judicial Stamp Paper of Rs ___/-) KNOW ALL MEN BY THESE PRESENTS THAT: I/We, [Full Name of Claimant], son/daughter/wife of [Father's/Husband's Name], aged [Age] years, residing at [Full Address], hereinafter referred to as the "Obligor/Claimant" (which expression shall include his/her heirs, legal representatives, successors, and assigns); WHEREAS the Obligor/Claimant is the rightful and lawful owner of [Number of Shares] equity shares of [Company Name] (CIN: [CIN Number]) bearing Folio No. [Folio Number] / DP ID & Client ID [DP ID-Client ID], having distinctive numbers from [From] to [To]; AND WHEREAS the said shares and/or unclaimed dividends amounting to Rs [Amount] have been transferred to the Investor Education and Protection Fund (IEPF) under Section 124(6) of the Companies Act, 2013; AND WHEREAS the Obligor/Claimant has filed IEPF Form 5 (SRN: [SRN Number]) for claiming refund of the said shares and/or dividends from IEPF; NOW THIS INDEMNITY BOND WITNESSETH THAT: 1. The Obligor/Claimant hereby undertakes and declares that he/she is the true and lawful owner of the aforesaid shares and is entitled to claim the said shares and dividends from IEPF. 2. The Obligor/Claimant hereby indemnifies and agrees to keep indemnified the IEPF Authority, [Company Name], and their respective officers, agents, and representatives against all losses, claims, demands, actions, proceedings, costs, and expenses that may arise or be incurred by reason of the IEPF Authority/Company acting upon this claim. 3. In the event of any other person establishing a rightful claim to the said shares/dividends, the Obligor/Claimant shall refund the entire amount received along with interest at the prevailing rate and shall bear all costs and expenses arising therefrom. 4. This indemnity bond shall remain in force and effect in perpetuity and shall be binding upon the heirs, executors, administrators, and legal representatives of the Obligor/Claimant. IN WITNESS WHEREOF, the Obligor/Claimant has executed this Indemnity Bond on this [Date] day of [Month], [Year] at [City]. OBLIGOR/CLAIMANT: Signature: ___________________________ Name: [Full Name] PAN: [PAN Number] Address: [Full Address] SURETY: Signature: ___________________________ Name: [Full Name of Surety] PAN: [PAN Number] Address: [Full Address] Relationship: [Relationship with Claimant] WITNESSES: 1. Signature: ___________________________ Name: ___________________________ Address: ___________________________ 2. Signature: ___________________________ Name: ___________________________ Address: ___________________________ NOTARIZED BY: (Seal and Signature of Notary Public)

Notarization Requirements

The indemnity bond must be notarized to be legally valid. Here's what the notarization process involves:

  1. Visit a Notary Public — Find a registered Notary Public in your city. They are usually located near courts or in advocate offices.
  2. Carry identification — Bring your original PAN card, Aadhaar card, and the stamp paper with the bond content printed or typed on it.
  3. Sign in presence of Notary — Both the claimant and surety must sign the bond in front of the Notary Public.
  4. Notarial seal and signature — The Notary will affix the official seal, sign the document, and assign a serial number.
  5. Cost — Notarization fees typically range from Rs 200 to Rs 1,000 depending on the city and Notary.

Surety Requirements

A surety is a person who guarantees the indemnity bond — essentially, they are co-guaranteeing your claim. Requirements for a surety:

  • Who can be a surety: Any person of sound mind who is a major (18+ years). Ideally a family member or person of good financial standing.
  • Documents needed from surety: PAN card copy, Aadhaar card copy, and address proof.
  • Number of sureties: IEPF Form 5 typically requires one surety. Some companies require two sureties for lost share certificate claims.
  • The surety should NOT be the same person as the claimant — it must be a different individual.

Indemnity Bond for Lost Share Certificates

When applying for duplicate share certificates due to loss, the indemnity bond format is slightly different. Key additions include:

  • A declaration that the original certificates are lost/misplaced and have not been pledged, sold, or transferred
  • Details of the FIR (if filed) or a police complaint for the lost certificates
  • An undertaking that if the original certificates are found, they will be returned to the company
  • Some companies require a newspaper advertisement about the lost certificates

Indemnity Bond for Transmission of Shares

For transmission after death of a shareholder, the bond includes additional elements:

  • Reference to the death certificate
  • Declaration of relationship with the deceased
  • Statement that no other person has a claim on the shares
  • Reference to succession certificate, probate, or letter of administration (if applicable)
  • All legal heirs may need to sign the bond jointly

Common Mistakes That Cause Rejections

  1. Wrong stamp paper value: Using insufficient stamp paper is the most common error. Always confirm the required value before purchasing.
  2. Incorrect company name or CIN: The company name must exactly match the records. Double-check the CIN from MCA portal.
  3. Missing folio/DP details: All share identification details must be accurately mentioned.
  4. No notarization: An un-notarized bond will be rejected outright.
  5. Expired stamp paper: In many states, stamp paper must be used within 6 months of purchase. Check your state's rules.
  6. Claimant and surety are the same person: These must be two different individuals.
  7. Missing witness signatures: Most bonds require two witnesses in addition to the surety.
  8. Wrong SRN number: For IEPF claims, the SRN from the online Form 5 submission must be accurately mentioned.
  9. Printed on plain paper instead of stamp paper: The bond must be on actual non-judicial stamp paper purchased from an authorized vendor.
  10. Illegible content: Ensure the text is clear and readable, whether typed or printed.

Where to Buy Stamp Paper

Non-judicial stamp paper can be purchased from:

  • Authorized stamp vendors — Usually found near courts, sub-registrar offices, or notary offices
  • Online platforms — Services like Stamp Duty Online (available in some states) let you buy e-stamp papers
  • Bank facilities — Some banks sell stamp paper or e-stamps
  • Sub-Registrar office — You can directly purchase from the registrar's office
E-stamp papers: Many states now issue e-stamp papers through SHCIL (Stock Holding Corporation of India Limited). These are increasingly preferred as they are harder to forge and are easily verifiable. E-stamp papers are fully valid for indemnity bonds.

Advance Receipt: The Other Required Document

Along with the indemnity bond, IEPF Form 5 claims also require an advance receipt (also called advance stamped receipt). This is a separate document executed on stamp paper where the claimant acknowledges receipt of the shares/dividends in advance and provides a discharge to the IEPF Authority. The format is simpler than the indemnity bond but must also be on stamp paper and notarized.

How Investor Helpdesk Can Help

Preparing the indemnity bond correctly the first time saves weeks of back-and-forth. Our services include:

  • Bond drafting: We prepare the indemnity bond in the exact format required for your specific situation
  • Stamp paper procurement: We arrange the correct stamp paper value for your state
  • Notarization coordination: We guide you through the notarization process or coordinate it for you
  • Complete IEPF filing: The bond is just one part — we handle the entire IEPF Form 5 process end-to-end

Need Help with Your Indemnity Bond?

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Frequently Asked Questions

What is an indemnity bond for shares?
An indemnity bond for shares is a legal document where the claimant promises to indemnify (protect from loss) the company or authority against any future claims or liabilities arising from the issuance of duplicate share certificates, IEPF refunds, or transmission of shares. It is essentially a guarantee that the claimant is the rightful owner.
What stamp paper value is needed for an indemnity bond?
The stamp paper value varies by state. For IEPF claims, a non-judicial stamp paper of Rs 100 or Rs 200 is typically sufficient. For lost share certificates involving higher value, some companies require stamp paper proportional to the share value (usually 3-5% of value). Check your state's stamp duty requirements.
Does the indemnity bond need notarization?
Yes, the indemnity bond must be notarized by a Notary Public. The claimant must sign the bond in the presence of the Notary, who then affixes the notarial seal and signature. Some companies also accept bonds attested by a Magistrate.
Is a surety required for the indemnity bond?
It depends on the purpose and the company's requirements. For IEPF Form 5 claims, IEPF Authority typically requires one surety. For lost share certificate claims, some companies require two sureties. The surety must be a person of sound financial standing and may need to provide proof of identity and address.
Can I type the indemnity bond or must it be handwritten?
The indemnity bond can be typed or printed on the stamp paper. It does not need to be handwritten. However, the signatures of the claimant, surety/sureties, and witnesses must be original (handwritten). Many people get the bond content printed and then affix it to the stamp paper.