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The Reality of Forgotten Investments
Over the decades, many Non-Resident Indians (NRIs) have invested in India’s public companies, encouraged by their trust in Indian growth and promising dividend opportunities. Through physical share certificates or early-stage DEMAT investments, these long-term investors built valuable portfolios. However, many of these shares, along with unclaimed dividends, now sit under the custody of the Investor Education and Protection Fund (IEPF) due to prolonged inaction. This blog will help you understand how to initiate NRI Shares Recovery from IEPF, the documents required, and why relying on Share Samadhan can make the entire process smoother and more effective.
In India, if a dividend remains untouched for seven straight years, it doesn’t just disappear — it, along with the corresponding shares, gets moved to the Investor Education and Protection Fund (IEPF). While this rule is meant to safeguard investors, it often creates unexpected trouble for NRIs.
Why? Unlike residents, many NRIs don’t receive dividend updates on time. Maybe the contact details weren’t updated. Maybe the share certificates were lost during a move overseas. Sometimes, they simply aren’t aware of the communication. And by the time they realize what’s happened, their hard-earned investment has already been marked as unclaimed.
Individuals who have not resided in India for 182 days or more during a financial year.
Individuals who are in India for less than 60 days in a financial year and have not stayed in India for 365 days in the preceding 4 years.
Someone who resides outside India for work, business, or any purpose, indicating an indefinite stay abroad.
Common examples include:
Indians working in the Middle East, the USA, the UK, or Singapore.
Students pursuing education abroad.
Entrepreneurs operating businesses from overseas.
These investors often contribute significantly to the NRI invest in the Indian stock market.
Let’s say an NRI holds shares in a public company purchased in the early 2000s. They might:
They forgot to update their foreign address
Missed dividend notifications
Not cash physical dividend warrants
After seven years of unclaimed dividends, the company must legally transfer:
All unclaimed dividends to the IEPF
Corresponding shares to the IEPF's DEMAT account
Once this happens, the original shareholder loses access to the shares until a formal claim is filed.
Here’s a simplified view of how Share Samadhan assists in NRI Asset Recovery:
Before filing, it's crucial to determine whether the shares are still with the company or have already been transferred to the IEPF.
Share Samadhan contacts the Registrar and Transfer Agent (RTA) of the company.
They verify shareholding status using the folio number, PAN, and shareholder credentials.
IEPF records are also searched online to track the current status of dividends and share transfers.
Here is a standard list of documents required:
|
Category |
Required Documents |
|
Identity Proof |
Self-attested copy of Passport, OCI/PIO card (if applicable) |
|
Address Proof |
Foreign address proof (e.g., utility bill, license) |
|
Bank Details |
Cancelled cheque and recent bank statement |
|
Demat Account |
Client Master List (CML) from the Depository Participant |
|
Shareholding Proof |
Original/duplicate share certificates or demat statements |
|
IEPF Requirements |
Indemnity bond, advance receipt, Form IEPF-5 printout |
Share Samadhan provides customized checklists to ensure nothing gets missed, especially since requirements can vary by company.
Share Samadhan assists in preparing and filing Form IEPF-5, which is the official reclaim form.
The Service Request Number (SRN) is generated after submission for tracking purposes.
All details must match precisely with the RTA’s records to avoid rejections.
Once the form is submitted online:
All signed and attested documents, including the indemnity bond and advance receipt, must be couriered to the Nodal Officer of the respective company.
Timely follow-ups are crucial to ensure that the nodal verification doesn’t lapse.
The company reviews the submitted documents.
If everything is satisfactory, they forward the verification report to the IEPF Authority within 30 days.
After receiving the report from the company, the IEPF scrutinizes the claim.
If approved, the shares are credited back to the investor’s DEMAT account and the unclaimed dividend is transferred to their NRI bank account.
Let’s take an example:
Seema, an NRI based in Canada, had shares in XYZ Ltd. that she inherited from her late father. The shares remained inactive for years. All dividend cheques sent to their old Indian address went unclaimed.
Verified the IEPF transfer status for XYZ Ltd.
Assisted in compiling documents across Canada and India
Filled and filed Form IEPF-5 accurately
Sent notarized documents to the company’s Nodal Officer
Followed up until company verification and IEPF approval
Within 1.5 years, Seema had her shares and dividend amount credited back to her accounts.
Share Samadhan acts as a single window for:
Tracking investments
Coordinating with companies and RTAs
Managing IEPF documentation
Ensuring deadlines and compliance are met
Their experts are well-versed in:
Succession certificate procurement
Legal heir claims for the joint or deceased holders
Affidavit and indemnity bond drafting
No matter where you're based—USA, UAE, UK, Singapore or other parts of the world—Share Samadhan offers:
Email consultations
Courier-ready documentation packages
India-based liaisons to coordinate with RTAs and companies
Recovering shares from IEPF without help can take over 3-4 years, with the risk of rejection due to minor errors. Share Samadhan’s expertise reduces processing time and ensures accurate submissions from the start.
While the IEPF recovery process remains the same for all, NRI claims include additional challenges:
|
Challenge |
Impact |
|
Distance & time zone |
Delay in communication and document dispatch |
|
Signature mismatch |
Differences in past and current records cause claim rejections |
|
Foreign notarization |
Extra costs and delays in notarizing documents |
|
Succession-related claims |
Inheritance paperwork and legal complications |
Share Samadhan is equipped to handle each of these layers.
Regularly monitor DEMAT statements
Update your email, mobile, and address in every company/RTA holding your shares
Link PAN to Aadhaar and bank accounts (as applicable)
Convert physical shares to DEMAT without delay
Claim dividends annually to reset the 7-year rule
These steps are simple yet essential for safeguarding your NRI stock investment portfolio.
NRI Asset Recovery is not just about reclaiming shares. It’s about reclaiming your financial legacy in India. The process is procedural but not impossible, especially when you have a reliable partner.
With over a decade of trust and 10,000+ successful cases, Share Samadhan is India’s go-to name for helping NRIs recover what is rightfully theirs.
If you or your family members suspect you have unclaimed shares in India, take the first step.
Reach out to Share Samadhan. Let your investments come back to you.