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Necessary Paperwork for IEPF Unclaimed Dividends

Precise attention to detail is critical in financial matters, particularly when it comes to completing the IEPF Form 5. This document plays a vital role in transferring IEPF unclaimed dividends and shares to their rightful owners. However, numerous individuals and businesses encounter avoidable errors during the form-filling process, resulting in delays, rejections, and unnecessary hassle. In this detailed guide, we'll discuss how to claim IEPF shares and common mistakes associated with completing the IEPF Form 5 and provide strategies to sidestep them, ensuring a seamless and successful filing experience.

When do your unclaimed shares get transferred to IEPF?

It is suggested that shareholders should check for their IEPF unclaimed dividends from the companies on a regular basis by keeping track of their funds and holding on to the necessary documents to file for dividend withdrawal. However, when a fund owed to a third party remains unclaimed for seven consecutive years, the fund gets transferred to IEPF.

Only specific investments in the security market go on to become a part of IEPF as per the sections of the law. They come from –

a) Amounts in the unpaid dividend accounts of the companies

b) Matured deposits with companies

c) Matured debentures with companies

d) The application money received by companies for allotment of any securities and due for refund

e) The interest accumulated on unpaid dividends and matured debentures.

The Procedure to Claim a Refund:

1. Begin by accessing the IEPF-5 webform for initiating the refund claim. Prior to filling out the form, carefully review the instructions provided on the website or in the instruction kit accompanying the web form.
2. Once the form is duly completed, proceed to submit it. Upon successful submission, an acknowledgment containing the Service Request Number (SRN) will be generated. Make sure to note down the SRN for future reference.
3. Print out both the filled IEPF-5 form and the generated acknowledgment for your records.
4. Prepare an original indemnity bond, a copy of the acknowledgment, and the filled IEPF-5 form, along with other required documents as outlined in Form IEPF-5. Place these documents in an envelope labeled "Claim for refund from IEPF Authority" and submit it to the Nodal Officer (IEPF) of the company at its registered office.
5. The concerned company will verify the completeness of the claim forms. Based on their verification report, the IEPF Authority will release the refund in favor of the claimants' account through electronic transfer.

About Form IEPF-5 Application Procedure in IEPF, shares search:

1. Start by visiting the IEPF website and accessing the 'Web Form IEPF-5' option available on the MCA portal.
2. Once you've filled out the form online through the MCA portal, ensure to save it on your device for future reference.
3. Proceed to upload the completed form by navigating to the IEPF website and selecting the 'Upload eForms' option located under the 'Forms' tab.
4. Upon successful upload, an acknowledgment containing the Service Request Number (SRN) will be generated.
5. Print out both the filled Form IEPF-5 and the generated acknowledgment for your records.
6. Prepare and submit the necessary documents to the Nodal Officer (IEPF) of the respective company. Ensure to mark the envelope clearly as 'Claim for a refund from IEPF Authority'.
7. The company in question will then verify the details provided in Form IEPF-5 and submit a report to the IEPF.
8. The IEPF Authority will review the completeness of the submitted documents and oversee the transfer of credits from the company to the IEPF Authority.
9. Finally, the IEPF Authority will initiate the refund process, directing the funds to the claimants' Aadhaar-linked bank accounts via electronic transfer.

Frequent Errors in Completing IEPF Form 5:

1. Discrepancies in Applicant's Name and PAN Database
2. Mismatch in Date of Birth and PAN Database
3. Unverified PAN Number
4. Incorrect Aadhar Card Details
5. Errors in Passport or OCI/PIO Card Details
6. Misinterpretation of Rule 7 Applicability
7. Misapplication of Rule 7 for Deletion Cases
8. Incorrect Mention of Deceased Shareholder and Beneficiary Details
9. Inaccurate Folio Number
10. Incorrect Number of Shares
11. Errors in Dividend Details Transferred to IEPF
12. Incorrect Financial Year
13. Inaccurate Bank or Demat Account Details
14. Wrong Attachments or Missing Compulsory Attachments

Documents Required to be Submitted to the Nodal Officer of the Company after Filing Form IEPF-5:

1. Ensure to provide a printed copy of the fully filled IEPF Form 5, bearing the signatures of the applicant and joint holders (if applicable) on all pages.
2. Include a self-attested acknowledgment of the Service Request Number (SRN) received upon filing.
3. Attach an indemnity bond on the appropriate stamp paper, duly self-attested by the claimant and witnessed, along with a date.
4. Include an advance stamped receipt, cross-signed and self-attested by the claimant, with witness signatures and date.
5. Provide a letter from the Registrar and Share Transfer Agent, verified by the Nodal Officer, serving as Proof of Entitlement.
6. Submit original share certificates or copies of transaction statements for digital holdings as proof of ownership. In case of lost original certificates, attach documents submitted to RTA for the issue of duplicate share certificates.
7. For foreign citizens, include copies of passport and OCI/PIO card.
8. Ensure all documents are securely attached to the IEPF Form.
9. Additionally, include any supporting documents previously submitted to the company for name, address, or signature changes, or for issuance of duplicate share certificates.

The process of claiming refunds and managing unclaimed investments through the IEPF can be intricate, demanding precise attention to detail at every step. However, with the assistance of Share Samadhan, India's Largest Unclaimed Investments Retrieval Advisory, this journey can be made significantly smoother. Share Samadhan offers expert guidance and support throughout the entire process, from filling out forms accurately to ensuring the submission of necessary documents. With their assistance, individuals and businesses can avoid common mistakes, streamline their refund claims, and reclaim their rightful investments with confidence and ease. Trust Share Samadhan to understand the complexities of IEPF claim procedures, making the path to financial recovery hassle-free.

FAQs:

Q1: Is registration necessary on the IEPF website before filling out the e-form IEPF-5?

A1: Yes, registration is required on the IEPF website under the 'Forms' link.

Q2: Is PAN mandatory for filing e-form IEPF-5?

A2: Yes, PAN is mandatory. The new e-form IEPF-5 is PAN verified, and the system will not allow submission in case of any variation. OTP-based verification is required, necessitating an active mobile number and a valid email ID.

Q3: Do I need professional assistance to fill e-form IEPF-5?

A3: While the e-form filling process is straightforward, professionals like Share Samadhan can further simplify it. The prescribed web form is precise and user-friendly, with a guidance kit attached for assistance. Additionally, the IEPF helpline is available for further support if needed.

Have you recently moved or forgotten to update your KYC details with your stockbroker? You might have unclaimed dividends without even knowing it! This guide will help you search for any unclaimed dividends, including those transferred to the Investor Education and Protection Fund (IEPF), and guide you through the process of reclaiming them. With over ₹15,000 crores in unclaimed dividends lying idle, it's crucial to check if you have money waiting for you. Learn how to recover your rightful funds through simple searches and straightforward procedural filings. Read on to find out more!

What Are Unclaimed Dividends?

Dividends represent a portion of a company's profits distributed to its shareholders, typically on a quarterly or annual basis. These payments can be delivered via checks, bank transfers, or other methods. However, sometimes dividends go unclaimed due to several reasons:

1. Incorrect or outdated registered address: If your stockbroker has an outdated address on file, you might not receive your dividends.
2. Unupdated bank details: Failing to update your bank information where dividends are directly deposited can result in unclaimed payments.
3. Expired checks: Dividend checks that are not deposited before they expire can lead to unclaimed funds.
4. Administrative errors: Mistakes like spelling errors in your account details can prevent accurate crediting of dividends.
5. Forgotten shares: You might forget about certain company shares you own that are eligible for dividends.ares you own 

When dividends go unclaimed over multiple dividend cycles, they can accumulate into significant amounts. By law, if dividends remain unclaimed for 7 consecutive years, companies are required to transfer these funds, along with the corresponding shares, to the Investor Education and Protection Fund (IEPF). Therefore, it’s beneficial to regularly check for any IEPF unclaimed dividends. Taking some time to ensure your contact and banking details are up-to-date can help you reclaim potentially thousands of rupees waiting for you.

Difference Between "Unpaid Dividends" and "Unclaimed Dividends"

Although "unpaid dividends" and "unclaimed dividends" are distinct concepts, they are often confused. Here's the difference:

Unpaid Dividends: These arise from a timing issue between the declaration of the dividend and the actual payment date. Essentially, they are dividends that have been declared but not yet paid out to shareholders.

Unclaimed Dividends: These are dividends that have been paid out but not claimed by shareholders. For instance, a shareholder might not receive their dividend due to outdated contact details or simply forgetting about the dividend.

How Unclaimed Dividends Are Transferred to the IEPF

When dividends go unclaimed, they must be dealt with according to specific regulations. As per Section 124(6) of the Companies Act, 2013, if dividends remain unclaimed for 7 consecutive years, the company is required to transfer these funds to the Investor Education and Protection Fund (IEPF).  Shareholders, however, can reclaim their dividends or shares from the IEPF Authority at any time by submitting Form IEPF-5. This process ensures that the dividends are ultimately returned to their rightful owners, even if they initially went unclaimed.

Checking for Unclaimed Dividends with Your Stockbroker

To search if you have any unclaimed dividends, start by reviewing your stockbroker statements associated with your Demat account. You can either log in to your online account or reach out to your broker's customer service. Look for any corporate action notices regarding dividends and check if they have statuses like “Failure”, “Invalid Address,” or “Unclaimed”. Also, cross-reference these notices with your bank statements to confirm whether the expected dividend amounts were credited.

If you identify any dividends that were declared but not received, take the following steps:

1. Update your information: Ensure your registered contact details and bank account information are up-to-date by submitting the necessary forms promptly.
2. Request re-issuance: Contact your stockbroker and request them to re-issue the failed dividend payments.
3. Monitor the status: Regularly check your statements to verify that the payments are successfully credited this time.

Some brokers provide a summary of unclaimed payments in your account. You may need to explore your statement details or request a consolidated unclaimed dividend report to find this information.

Searching for Unclaimed Amounts in Official Company Records & IEPF Data

If some of your dividend payments became unclaimed before you managed your Demat account, or if you held shares in physical form with no contact details provided to the company, these funds might have already been transferred to the IEPF without your knowledge. You can recover these amounts through the unified public database maintained by the Ministry of Corporate Affairs (MCA), which includes complete IEPF fund details.

Step 1: Verify Your Holdings Against Company Records

Begin by checking each company in which you currently or previously held shares:

1. Visit the MCA website and go to the ‘Track Your Dividends’ section.
2. Select the company’s name (use the search function if necessary).
3. The site will display consolidated data of cumulative unclaimed dividends held by the company.
4. Enter your details, such as PAN, bank account number, or other identifiers associated with your shares.
5. The system will search and display any unclaimed amounts linked to your details.

If the search shows unclaimed dividends related to your financial identifiers, the company owes you money.

Step 2: Search Your Name Directly in the Centralized IEPF Database

Don't limit your search to company records. Check the IEPF's consolidated database for already transferred unclaimed amounts:

1. Visit the MCA website and go to the IEPF-related services section.
2. Click on the “Claim Your Unclaimed Amount from IEPF Authority” option.
3. Enter your name, PAN, and other basic details.
4. Hit the Search button.

If the IEPF database has records of funds or shares transferred under your credentials, it will display your name and details, including:

1. Breakdown of unclaimed shares and dividends transferred for each company.
2. Transfer date when they were credited to the IEPF.
3. Claim status – whether they have been claimed back or not.

Review the search results to identify the oldest instances of unclaimed shares or dividends belonging to you now with the IEPF. This crucial step traces your legitimate unclaimed funds.

Now, you can begin the process of legally claiming these funds back into your account.

Filing Your Claim with IEPF to Search & Recover Unclaimed Dividends

The IEPF authority has streamlined the process for original shareholders to recover unclaimed dividends or shares that have been transferred to the IEPF after 7 years. Here is a step-by-step guide for individuals to file, track, and receive payouts against their IEPF claims:

Step 1: Prepare Claim Form IEPF-5 and Accompanying Documents

Submit the necessary forms and documents either physically or online:

1. Fill out E-form IEPF-5 on the MCA portal to make your formal claim.
2. Provide a copy of your PAN card as mandatory photo identity proof.
3. Include a statement showing your active Demat account details with a stockbroker or depository participant registered with NSDL/CDSL.
4. Attach a cancelled personal cheque that shows your printed name and bank account number.
5. Gather other supporting documents such as earlier dividend payment proofs to further substantiate your claim.

Step 2: Authorize a Nodal Officer for IEPF Refunds

Authorize a specific Nodal Officer from either NSDL or CDSL depositories to represent your claim with the IEPF authority.

1. Send the completed IEPF-5 form to the chosen Nodal Officer's address.
2. Indicate that you are designating them under the ECS category for credit of any claimed dividends/shares.

Step 3: Claim Tracking and Communication

Track your claim through the Claim Status updates on the portal using your SRN (Service Request Number).

1. Monitor the processing stages of your IEPF claim closely.
2. Respond promptly to any queries via email or post from the IEPF authority.
3. Provide additional documents if required for verification or correction.
4. Submit revised forms or papers timely to avoid delays or rejection. If a claim remains pending for over 45 days, you will receive email notifications and reminders.

Step 4: Claim Disbursal or Closure Communications

After the IEPF verifies and approves your claim:

1. You will receive a closure intimation detailing the unclaimed amount sanctioned and shares released in your favor.
2. Disbursement usually takes another 20-25 days through your preferred mode, such as account credit or cheque.
3. Wait for confirmation from the Nodal Officer regarding the successful disbursement.

By following these steps, you can successfully reclaim your unclaimed dividends and shares from the IEPF.

Final Words

To recover unclaimed dividends, shares, or proceeds from a company or the IEPF, it's crucial to thoroughly check and assert your rights as a legitimate original shareholder. Stay vigilant about your investments and the corporate actions associated with them. Regularly update your portfolio details to avoid missing out on dividend payments that could otherwise disappear over the years. The digitization of financial records across companies, brokers, and regulatory authorities is helping to address these unclaimed equity issues more efficiently. As an informed investor, you now have the knowledge and tools to trace any unclaimed funds linked to your identity and swiftly reclaim them into your bank account. Stay proactive and ensure your investments are always working for you! Get in touch with the professionals of Share Samadhan to make the process easier than before today!

Diversification is an important strategy for mitigating stock price volatility. The goal is to select stocks that outperform an index fund. One company that has demonstrated this potential is NTPC Limited (NSE: NTPC). In the past year, NTPC shares have experienced a substantial increase of 92.04%, climbing to ₹372.95. However, the long-term picture is less impressive, with the stock declining by 0.6% over the past three years. To determine if the underlying business performance aligns with long-term shareholder returns, examining the company's fundamentals is essential. Although share prices frequently mirror investor sentiment rather than fundamental business performance, markets remain effective pricing mechanisms. By analyzing changes in earnings per share (EPS) and share price, we can gain insight into how investor perceptions of a company have evolved. Over the past three years, NTPC has achieved an EPS growth of 18.40% and a revenue growth of 16.97%. In the trailing twelve months, the company generated a revenue of ₹17,85,009 crore, marginally surpassing the revenue of the most recent fiscal year. Additionally, investors should be aware of IEPF unclaimed shares that might be transferred to the Investor Education and Protection Fund. If you have unclaimed dividends or shares, it is essential to initiate an IEPF claim to recover these assets. By staying informed about your investments and understanding the process to claim any unclaimed shares, you can ensure that your financial portfolio remains robust and beneficial.

The Calculation You Must Pay Attention To:

Before understanding the process of claiming NTPC Limited's unclaimed shares and unclaimed dividends transferred to the IEPF, it’s important to understand why claiming your shares and dividends is crucial. Since its listing on stock exchanges, NTPC Limited has consistently been one of the top-performing stocks in the market. In 2004, the price per share of NTPC Limited was approximately Rs. 80, and as of July 5, 2024, it has risen to Rs. 376, excluding any bonuses or splits.

If you're wondering how to find unclaimed shares, it's crucial to follow the proper steps and guidelines provided by the IEPF. The IEPF unclaimed shares represent a significant value that you should not overlook.

Let's say that you purchased 100 NTPC Limited shares in 2004 at Rs. 80 per share.

Total Investment = 100 * 80 = Rs. 8,000

There was a bonus share issuance on March 19, 2019, with a ratio of 1:5.

Number of Shares after Bonus = 100 + (100 / 5) = 100 + 20 = 120 shares

Therefore, if you purchased 100 shares in 2004, you now own 120 shares after the bonus.

Current Market Price of NTPC Limited (as of July 5, 2024) = Rs. 376 per share

Total Value of Investment Now in 2024 = 120 * 376 = Rs. 45,120

To initiate an IEPF claim, you need to follow specific steps and procedures to ensure that your unclaimed assets are returned to you.

Understanding why claiming your unclaimed shares and unclaimed dividends transferred to the IEPF is crucial and can help you make informed decisions. By reclaiming your shares, you ensure that you are not missing out on potential financial assets that belong to you.

Considering Dividends

When evaluating investment returns, it's essential to distinguish between total shareholder return (TSR) and share price return. TSR is a comprehensive metric that includes the value of cash dividends, assuming that any dividends received were reinvested, as well as the estimated value of any deferred capital raising and spin-off transactions. Consequently, TSR can often be significantly higher than share price returns for companies that distribute substantial dividends.

For NTPC, the TSR over the past year was 32%, surpassing the previously mentioned share price return. This higher TSR can be attributed to the dividends paid out by the company, highlighting the importance of considering dividends when assessing overall investment performance. If you have an unclaimed dividend from NTPC, you should learn how to claim unclaimed dividends to ensure you benefit from these returns. You can start by conducting a search for unclaimed dividends on the IEPF website.

A Different Perspective

It's heartening to see that NTPC shareholders have experienced a total shareholder return (TSR) of 32% over the past year, which includes dividends. This recent performance indicates an improvement, as the one-year TSR is significantly higher than the five-year TSR, which stands at an annual rate of 4%. This upward trend may signal genuine company momentum, suggesting that now could be an excellent time for further investigation.

Examining the share price as a long-term indicator of company success is intriguing, but it's essential to consider additional data for a comprehensive understanding. For example, we've identified two red flags for NTPC, one of which is particularly concerning. It’s crucial to be aware of these potential issues before making an investment decision.

If you have dividends that you haven't claimed, they may have been transferred to the Investor Education and Protection Fund (IEPF). Knowing how to claim dividends and initiating an IEPF claim can help you recover these funds. The process of how to claim unclaimed dividends involves submitting the necessary forms and documents to the IEPF authority. This ensures that your IEPF unclaimed dividends are returned to you, enhancing your overall investment returns.

Dividend History from the Beginning

Source: https://www.moneycontrol.com/company-facts/ntpc/dividends/NTP

Bonus History:

Source: https://www.moneycontrol.com/company-facts/ntpc/bonus/NTP

Why Have Your NTPC Limited Unclaimed Shares Gone to IEPF?

According to government regulations, dividends on shares that remain unclaimed for seven or more consecutive years must be transferred to the Investor Education and Protection Fund (IEPF) by the respective company. If a dividend remains unclaimed for seven consecutive years, the company is obligated to transfer the associated shares to the IEPF. In the past, companies could take advantage of investors' unawareness by keeping the unclaimed dividends. To tackle this issue, the government created the IEPF, where companies need to transfer shares that have remained unclaimed for seven years to the fund.

What is IEPF and Its Purpose?

IEPF (Investor Education and Protection Fund) was introduced by the Government of India in the year 2016 on September 7, under the provisions of Section 125 of the Companies Act, 2013. The IEPF serves as a regulatory framework aimed at safeguarding and managing the funds of investors.

IEPF's responsibilities include:

• Refunding and recovering shares, matured deposits/debentures, and unclaimed dividends.
• Promoting awareness among investors.
• Reimbursing legal expenses incurred by depositors in pursuing legal actions.

By fulfilling these roles, the IEPF ensures that investors are protected and informed about their investments.

How to Claim NTPC Shares from IEPF

1. Eligibility to Claim: Anyone can claim shares transferred to the Fund, including unclaimed dividends, matured deposits, matured debentures, application money due for refund, interest on these amounts, and sale proceeds of fractional shares.
2. Submission of Claim Form: The claimant must complete and sign Form IEPF-5 and submit it along with the required documents listed in the form to the relevant company at its registered office for verification.
3. Verification by Company: Within fifteen days of receiving the claim, the company must verify the claim and submit a verification report, along with the supporting documents provided by the claimant, to the Authority.
4. Confirmation of Eligibility:
   - For monetary claims: The Authority and its Drawing and Disbursing Officer will issue a bill to the Pay and Accounts Office for electronic payment as per the rules
   - For share claims: With the consent of the Competent Authority, the Authority will issue a refund sanction order and credit the shares to the claimant's DEMAT account.
5. Record-Keeping: The Authority must record all payments made under these rules.
6. Response Time: The Authority must respond to a properly verified refund claim within sixty days of receiving the company's verification report. If there is a delay beyond sixty days, the Authority must document the reasons for the delay and inform the claimant in writing or electronically.
7. Deficiency Notification: If the application is deficient or not approved, the Authority must notify the claimant and the relevant company of the deficiencies.
8. Transmission Process: If the claimant is the legal heir, successor, administrator, or nominee of the registered shareholder, they must ensure the transmission process is completed by the company before submitting any claims to the Authority.
9. Verification of Documents: The company must verify all necessary documents for registering the transfer or transmission and issue a letter indicating the claimant's entitlement to the security. This letter must be furnished to the Authority.
10. Consolidated Claims: The claimant can only submit one consolidated claim per company per fiscal year.
11. Indemnity: The Authority is not liable to indemnify the security holder or company for any discrepancies in the verification report leading to litigation or complaints. The company must indemnify the Authority in case of any disputes or lawsuits arising from inconsistencies in the verification report.

This process ensures that shareholders can reclaim their IEPF unclaimed shares and unclaimed dividends while maintaining a clear and regulated procedure.

How to Claim a Dividend

Follow these steps to claim your dividend:

Converting a Physical Share Certificate into Demat

1. Open a Demat Account: Claimants must open a Demat Account with a depository institution to receive shares released by the IEPF Authority in their favor.
2. Download Form IEPF-5: Visit the IEPF website (http://www.iepf.gov.in) and download Form IEPF-5. Before filling out the form, review the instructions provided on the website, the instruction package, and the e-form.
3. Complete the Form: Fill out the form by entering the required information, save it to your computer, and then upload the completed form following the website’s instructions.
4. Acknowledge Submission: After successfully uploading the form to the MCA Portal, you will receive an acknowledgment with the SRN (Service Request Number). Keep the SRN safe for future reference and tracking.
5. Print Documents: Print the properly completed IEPF-5 form and the acknowledgment received after uploading the form.
6. Prepare Additional Documents:
   - Indemnity Bond: On plain paper, prepare an indemnity bond. Refer to page 8 of the instruction kit for the format and stamp duty details.
   - Advance Stamped Receipt: Prepare an advance stamped receipt with signatures from the claimant and two witnesses. The format is described on page 7 of the instruction package.
7. Compile the Required Papers: Gather the following documents:
   - The printed IEPF-5 form and acknowledgment
   - The self-attested electronic form
   - Any other documents specified in Form IEPF-5, including:
       =>  For Indian citizens: A copy of the Aadhaar card and proof of entitlement (e.g., original security certificates, interest warrant applications)
       =>  A canceled check leaf
       =>  For foreign nationals: A copy of the passport, OCI (Overseas Citizen of India), or PIO (Person of Indian Origin) card

Following these steps ensures that you complete the process accurately and efficiently, allowing you to claim your unclaimed dividend successfully. For quick and best results, get in touch with the expert team associated with Share Samadhan.

As of February 2, 2021, ICICI Bank's shares were trading at over Rs. 597.75 per share. ICICI Bank has demonstrated remarkable growth since its inception as one of India's largest private-sector banks. This impressive growth has also translated into substantial gains for its shareholders. To make its shares more accessible to retail investors, the bank has implemented stock splits over the years. However, the company's rapid expansion has also resulted in significant unclaimed dividends, which have been transferred to the Investor Education and Protection Fund (IEPF).

What do these facts tell us about ICICI Bank? The company's unprecedented growth has transformed early investors into millionaires today, provided they continuously claimed the dividends released by the bank. But what about those who invested a small amount years ago and then forgot about it, thinking it would never grow? There's good news for these investors too! They can still claim their dormant shares and associated dividends.

The Government of India has established the IEPF authority to manage dormant shares and unclaimed dividends. In this blog, we will explore the history of ICICI Bank and illustrate its growth with a hypothetical investment. We will also examine the data related to ICICI Bank's dividends and funds transferred to the IEPF over the years. Finally, we will explain how investors can claim their dormant shares and why seeking legal assistance can be beneficial in the process.

So, let’s begin by delving into the history of ICICI Bank.

The History of ICICI Bank

ICICI Bank Limited, initially known as the Industrial Credit and Investment Corporation of India, began its journey as a financial institution dedicated to providing credit to industries. Established in 1955, the parent company was a collaborative effort among the World Bank, Indian public-sector banks, and public-sector insurance companies. The primary goal was to offer project financing to Indian industries.

Originally a government-owned entity based in Baroda until 1994, the bank was eventually divested to operate independently and rebranded as ICICI Bank. The parent company merged with the bank, solidifying its transformation. In 1998, ICICI Bank pioneered Internet Banking services, marking a significant milestone in its digital transformation.

The same year, the parent company's shareholding in ICICI Bank decreased to 46% through an initial public offering (IPO). In 2000, the bank further expanded its international presence by offering American depositary receipts (ADRs) on the New York Stock Exchange. A year later, ICICI Bank acquired Bank of Madura Limited in an all-stock transaction, further enhancing its footprint. Between 2001 and 2002, the bank continued to sell additional stakes to institutional investors.

Throughout the 1990s, ICICI diversified its financial services portfolio, offering a range of products through its numerous affiliates and subsidiaries, significantly increasing its revenue base. In 1999, it made history as the first Indian company and bank outside of Japan in Asia to be listed on the New York Stock Exchange.

The transformative journey continued in 2002 with a significant reverse merger, consolidating major subsidiaries such as ICICI, ICICI Bank, ICICI Personal Financial Services Limited, and ICICI Capital Services Limited into one entity.

In 2008, during the global financial crisis, ICICI faced a challenging period with customers rushing to ATMs and branches due to rumors about the bank's financial health. The Reserve Bank of India (RBI) intervened to affirm the bank's stability, quelling the panic. In March 2020, ICICI Bank's board approved a Rs. 1,000 crore investment in Yes Bank Ltd., raising its stake to 5%.

Today, ICICI Bank boasts a network of approximately 18,210 branches, ATMs, and around 110 Touch Banking branches across over 30 Indian cities. Its international banking services cater to Non-Resident Indian corporate clients and leverage economic corridors between India and other nations. Additionally, the bank supports female entrepreneurs through the Self-Help Group (SHG) program, which is part of its microfinance initiatives.

Given its rich history and strategic growth, ICICI Bank has provided substantial returns for its investors. In the next section, we'll explore how a hypothetical investment made in ICICI Bank in 1998 would have appreciated over the years.

Calculation of ICICI Bank’s Share Growth

Imagine a shareholder in the year 2000 bought 800 shares of ICICI Bank Ltd. at a price of Rs. 10 per share. The initial investment would have been:

800shares×Rs.10per share=Rs.8000

This might seem like a modest investment. Often, such investments are made by parents or grandparents, who might then forget about them over the years. These shares can remain unnoticed, quietly growing in value.

Since 2000, the value of ICICI Bank shares has increased steadily. The bank announced a stock split in 2014 at a 1:5 ratio to make the shares more affordable for small investors. This means for every 1 share owned, investors received 5 shares. Here are the details of the split:

- Announcement Date: 09/09/2014

- Old Face Value: Rs. 10

- New Face Value: Rs. 2

- Record Date: 05/12/2014

- Ex-Split Date: 04/12/2014

As a result, the 800 original shares became:

800shares×5=4000shares

While the number of shares increased, the total value of the investment stayed the same at that moment, just divided among more shares.

By 2017, ICICI Bank continued to grow and announced bonus shares in a 1:10 ratio. For every 10 shares owned, investors received 1 additional share. Here are the details:

- Announcement Date: 03/05/2017

- Bonus Ratio: 1:10

- Record Date: 20/06/2017

The bonus shares added would be:

4000shares÷10=400bonus shares

So, the total number of shares after the bonus issue became:

4000shares+400bonus shares=4400shares

Now, let's calculate the current value of these shares. Suppose the current share price is Rs. 597.75. The total value of the investment now would be:

4400shares×Rs.597.75per share=Rs.26,31,100

Comparing this to the initial investment of Rs. 8000, the return is tremendous. And this doesn't even include the dividends received over the years. Adding those dividends would significantly increase the total returns, potentially reaching multi-million rupee values.

Imagine finding old share certificates from the early 2000s belonging to your grandparents. Even a small investment from that time could have grown substantially. But how do you claim these shares? What about the dividends? We'll explore the answers to these questions in the next sections.

About IEPF and its Relationship with Unclaimed Dividends

The establishment of the Investor Education and Protection Fund (IEPF) in 2016 marked a significant reform in India's financial regulatory framework. Before this, the Indian stock exchange lacked a statutory body to manage unclaimed dividends. The government introduced the IEPF authority and formulated regulations to address these issues. Below are the key changes and amendments introduced by the IEPF rules regarding the transfer of unclaimed dividends.

1. Claim Period for Dividends: -

Investors are required to claim their dividends within 30 days of the declaration.

2. Unclaimed Dividend Account: -

Companies must create a separate account for unclaimed dividends. If dividends are not claimed within 30 days, they must be transferred to this account.

3. Claiming Dividends Post-30 Days: -

Investors who miss the 30-day window can claim their dividends from the special account by contacting the company’s transfer or nodal officer and submitting the necessary documents.

4. Periodic Notifications: -

Companies must periodically inform shareholders that their unclaimed dividends have been transferred to the unclaimed dividend account and advise them to claim the dividends before they are moved to the IEPF.

5. Publishing Investor Lists: -

Companies are required to publish a list of investors whose dividends have been transferred to the unclaimed dividend accounts.

6. Individual Notifications: -

Companies should communicate directly with investors, via email or letters, about the transfer of dividends to the unclaimed dividend account.

7. Seven-Year Transfer Rule: -

If an investor does not claim the dividends from the company within seven years of the transfer to the unclaimed dividend account, the dividends are then transferred to the IEPF.

8. Annual Shareholder List: -

Companies must release an annual list of shareholders whose shares have been transferred to the IEPF.

9. Claiming Dormant Shares: -

After seven years, shareholders must apply directly to the IEPF to claim their dormant shares.

The Ministry of Corporate Affairs (MCA) implemented these rules to streamline and regularize the process of claiming dormant dividends. This ensures that the claim process is transparent and organized. Claiming dividends from the IEPF involves a thorough verification process to ensure that the dividends are given to the rightful owner and to prevent fraudulent claims.

The introduction of the IEPF has made it easier for investors to reclaim their unclaimed dividends and shares, providing a structured and secure method to do so.

The process to Claim Dividends of ICICI Bank from IEPF

Claiming dividends from the Investor Education and Protection Fund (IEPF) might seem complicated due to the number of documents and procedures involved. Here, we've simplified the steps to make the process easier to understand:

1. Contact the Nodal Officer: -

Begin by reaching out to the nodal officer of ICICI Bank. They will provide all necessary details about your shares and the claim process. The nodal officer will also give you a list of required documents for your claim.

2. Fill Out the IEPF Form: -

Visit the IEPF website and fill out the appropriate form with your details and information about your share ownership.

3. Print and Compile Documents: -

After submitting the form online, print a copy of the completed form. Gather all the required documents as specified by the IEPF website and the nodal officer.

4. Submit Documents to the Nodal Officer: -

Send your compiled documents and the printed form to the nodal officer. They will verify your ownership of the shares and check the details against the submitted form.

5. Verification Report: -

The nodal officer will prepare a claim verification report based on your documents. This report will be sent to the IEPF Authority’s regional fund manager within 15 days of receiving your documents.

6. Review by Fund Manager: -

The regional fund manager will review the claim verification report along with your form and supporting documents.

7. Possible Actions by Fund Manager: -

After reviewing your claim, the fund manager may: 

• Request Additional Documents:  If more information is needed, you or the nodal officer must provide the additional documents within 15 days.
• Reject the Claim: The claim may be rejected due to errors or missing documents that were not provided in time.
• Approve the Claim: If everything is in order, the fund manager will approve the claim and sanction the amount.

By following these steps, you can successfully claim your dividends from the IEPF. While the process may require attention to detail and timely submission of documents, these guidelines can help simplify the procedure.

Necessity of Legal Help to Claim ICICI’s Old Shares

As we've discussed, the claim process for dividends through the Investor Education and Protection Fund (IEPF) involves a thorough review by the nodal officer to prevent fraudulent claims. This involves detailed scrutiny of ownership documents and verification of the claim form. Even minor errors in the application can lead to delays or rejection of the claim.

Given the complexity and time-consuming nature of the process, it can be challenging for the average investor. To streamline this process and ensure accuracy, it is often beneficial to hire a reputable legal consultancy firm. These firms specialize in filing IEPF claims, significantly reducing the chances of errors in the application. They also handle all communications with the nodal officer and the IEPF authority, addressing any issues or missing documents on behalf of the claimant.

Here are the key benefits of hiring a legal consultancy firm:

1. Expertise and Accuracy: - Legal firms have expertise in the IEPF claim process, ensuring that the application is filled out correctly and all necessary documents are included.

2. Time-Saving: - By delegating the claim process to professionals, investors can save valuable time and avoid the tedious aspects of filing and following up on the claim.

3. End-to-End Service: - These firms provide comprehensive services, managing the entire process from form submission to liaising with the nodal officer and IEPF authority.

4. Error Minimization: - The likelihood of errors in the application is minimized, which helps prevent delays or rejections.

Considering these advantages, it is clear that recovering old ICICI shares can be a profitable endeavor for investors. It is worthwhile to check the investment portfolios of parents or grandparents for any dormant ICICI Bank shares. By hiring a legal consultancy firm such as Share Samadhan, investors can ensure a smooth and efficient IEPF claim process, allowing them to focus on their daily activities or core business operations without the stress of managing the claim themselves.

Necessary Paperwork for IEPF Unclaimed Dividends

Precise attention to detail is critical in financial matters, particularly when it comes to completing the IEPF Form 5. This document plays a vital role in transferring IEPF unclaimed dividends and shares to their rightful owners. However, numerous individuals and businesses encounter avoidable errors during the form-filling process, resulting in delays, rejections, and unnecessary hassle. In this detailed guide, we'll discuss how to claim IEPF shares and common mistakes associated with completing the IEPF Form 5 and provide strategies to sidestep them, ensuring a seamless and successful filing experience.

When do your unclaimed shares get transferred to IEPF?

It is suggested that shareholders should check for their IEPF unclaimed dividends from the companies on a regular basis by keeping track of their funds and holding on to the necessary documents to file for dividend withdrawal. However, when a fund owed to a third party remains unclaimed for seven consecutive years, the fund gets transferred to IEPF.

Only specific investments in the security market go on to become a part of IEPF as per the sections of the law. They come from –

• a) Amounts in the unpaid dividend accounts of the companies
• b) Matured deposits with companies
• c) Matured debentures with companies
• d) The application money received by companies for allotment of any securities and due for refund
• e) The interest accumulated on unpaid dividends and matured debentures.

The Procedure to Claim a Refund:

1. Begin by accessing the IEPF-5 webform for initiating the refund claim. Prior to filling out the form, carefully review the instructions provided on the website or in the instruction kit accompanying the web form.

2. Once the form is duly completed, proceed to submit it. Upon successful submission, an acknowledgment containing the Service Request Number (SRN) will be generated. Make sure to note down the SRN for future reference.

3. Print out both the filled IEPF-5 form and the generated acknowledgment for your records.

4. Prepare an original indemnity bond, a copy of the acknowledgment, and the filled IEPF-5 form, along with other required documents as outlined in Form IEPF-5. Place these documents in an envelope labeled "Claim for refund from IEPF Authority" and submit it to the Nodal Officer (IEPF) of the company at its registered office.

5. The concerned company will verify the completeness of the claim forms. Based on their verification report, the IEPF Authority will release the refund in favor of the claimants' account through electronic transfer.

About Form IEPF-5 Application Procedure in IEPF, shares search:

1. Start by visiting the IEPF website and accessing the 'Web Form IEPF-5' option available on the MCA portal.

2. Once you've filled out the form online through the MCA portal, ensure to save it on your device for future reference.

3. Proceed to upload the completed form by navigating to the IEPF website and selecting the 'Upload eForms' option located under the 'Forms' tab.

4. Upon successful upload, an acknowledgment containing the Service Request Number (SRN) will be generated.

5. Print out both the filled Form IEPF-5 and the generated acknowledgment for your records.

6. Prepare and submit the necessary documents to the Nodal Officer (IEPF) of the respective company. Ensure to mark the envelope clearly as 'Claim for a refund from IEPF Authority'.

7. The company in question will then verify the details provided in Form IEPF-5 and submit a report to the IEPF.

8. The IEPF Authority will review the completeness of the submitted documents and oversee the transfer of credits from the company to the IEPF Authority.

9. Finally, the IEPF Authority will initiate the refund process, directing the funds to the claimants' Aadhaar-linked bank accounts via electronic transfer.

Frequent Errors in Completing IEPF Form 5:

1. Discrepancies in Applicant's Name and PAN Database

2. Mismatch in Date of Birth and PAN Database

3. Unverified PAN Number

4. Incorrect Aadhar Card Details

5. Errors in Passport or OCI/PIO Card Details

6. Misinterpretation of Rule 7 Applicability

7. Misapplication of Rule 7 for Deletion Cases

8. Incorrect Mention of Deceased Shareholder and Beneficiary Details

9. Inaccurate Folio Number

10. Incorrect Number of Shares

11. Errors in Dividend Details Transferred to IEPF

12. Incorrect Financial Year

13. Inaccurate Bank or Demat Account Details

14. Wrong Attachments or Missing Compulsory Attachments

Documents Required to be Submitted to the Nodal Officer of the Company after Filing Form IEPF-5:

1. Ensure to provide a printed copy of the fully filled IEPF Form 5, bearing the signatures of the applicant and joint holders (if applicable) on all pages.

2. Include a self-attested acknowledgment of the Service Request Number (SRN) received upon filing.

3. Attach an indemnity bond on the appropriate stamp paper, duly self-attested by the claimant and witnessed, along with a date.

4. Include an advance stamped receipt, cross-signed and self-attested by the claimant, with witness signatures and date.

5. Provide a letter from the Registrar and Share Transfer Agent, verified by the Nodal Officer, serving as Proof of Entitlement.

6. Submit original share certificates or copies of transaction statements for digital holdings as proof of ownership. In case of lost original certificates, attach documents submitted to RTA for the issue of duplicate share certificates.

7. For foreign citizens, include copies of passport and OCI/PIO card.

8. Ensure all documents are securely attached to the IEPF Form.

9. Additionally, include any supporting documents previously submitted to the company for name, address, or signature changes, or for issuance of duplicate share certificates.

The process of claiming refunds and managing unclaimed investments through the IEPF can be intricate, demanding precise attention to detail at every step. However, with the assistance of Share Samadhan, India's Largest Unclaimed Investments Retrieval Advisory, this journey can be made significantly smoother. Share Samadhan offers expert guidance and support throughout the entire process, from filling out forms accurately to ensuring the submission of necessary documents. With their assistance, individuals and businesses can avoid common mistakes, streamline their refund claims, and reclaim their rightful investments with confidence and ease. Trust Share Samadhan to understand the complexities of IEPF claim procedures, making the path to financial recovery hassle-free.

FAQs:

Q1: Is registration necessary on the IEPF website before filling out the e-form IEPF-5?

A1: Yes, registration is required on the IEPF website under the 'Forms' link.

Q2: Is PAN mandatory for filing e-form IEPF-5?

A2: Yes, PAN is mandatory. The new e-form IEPF-5 is PAN verified, and the system will not allow submission in case of any variation. OTP-based verification is required, necessitating an active mobile number and a valid email ID.

Q3: Do I need professional assistance to fill e-form IEPF-5?

A3: While the e-form filling process is straightforward, professionals like Share Samadhan can further simplify it. The prescribed web form is precise and user-friendly, with a guidance kit attached for assistance. Additionally, the IEPF helpline is available for further support if needed.