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A Stepwise Guide to Getting Unclaimed Dividends from IEPF Authority

18, Aug 2023
A Stepwise Guide to Getting Unclaimed Dividends from IEPF Authority

Amidst the rapidly evolving share market, overlooked old shares are nothing uncommon. And considering it, the Ministry of Corporate Affairs (MCA) dons have come to the rescue. 

 

A fund named Education and Protection Fund (IEPF), introduced by MCA, helped to give the unclaimed money a haven. Section 124 of the Companies Act, 2013, backed by the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer, and Refund) Rules, 2016, enables shareholders to get back their unclaimed dividends. Keep on reading to get details on how to claim your old share from this authority. 

 

Defining Unclaimed Dividend 


 

Unclaimed dividend denotes the portion of a company's profits distributed to its shareholders as dividends but remains undistributed or unpaid due to shareholders' inability to claim or cash their dividend entitlements within a specified time limit. 

 

The companies held that after a specific time ( maximum 7 years), the money will get transferred to the Investor Education and Protection Fund (IEPF) as per legal regulations, ensuring rightful shareholders can still access their dividends. It’s a claim that saves investors from the burdens of missing money.

 

A Few Words on IEPF

 

Before you think of the transmission of shares or other fiscal facts, knowing about IEPF is essential. Emerged as the guiding star of fiscal rights, the Investor Education and Protection Fund (IEPF) Authority was introduced on September 7, 2016, via the brushstrokes of Section 125 of the Companies Act, 2013. 

 

Besides playing the role of a guardian taking care of unclaimed investments, this authority is responsible for orchestrating the symphony of refunds – the unclaimed dividends, the ripe deposits, and the matured debentures – all finding their way back to the rightful investors. 

 

You can consider IEPF as a conductor that thinks beyond offering fiscal harmony, It also provides financial literacy, as it breathes life into awareness among investors and helps them to get back their unclaimed dividends. 

 

How to Get Unclaimed Shares from IEPF?


 

Step 1: Filing to the Authority

 

If you want to get a refund or recover the shares back in your name, first you need to submit the Form IEPF-5 on the MCA portal. There you need to give information including:

  • The company information from that has the due amount, including the CIN number 

  • Share details you are claiming

  • Details of the dividend amount

  • Aadhaar number, ( if you are an Indian citizen or passport/OCI/PIO card number, if you are a NRI or foreigner)

  • Details of the Aadhar-linked bank account to which the claim would be refunded 

  • Demat account number

 

Step 2: Claim Submission to Authority

 

After submitting the IEPF-5 form as a claimant you need to send the form copy to the company’s IEPF Nodal Officer/Registrar attaching the following documents: 

 

  • Printout of the filled Form IEPF-5 with the claimant’s signature. 

  • Acknowledgment copy with the SRN number.

  • Original indemnity bond bearing claimant’s signature on the non-judicial stamp paper.

  • Original advance stamped receipt bearing the signature of the claimant and witnesses.

  • Original share certificates (for physical form holdings) or a transaction statement snapshot (for Demat form securities).

  • Aadhaar card

  • Entitlement proofs like the certificate of share, interest warrant application number, etc.

  • Passport, Overseas Citizen of India (OCI), or Person of Indian Origin (PIO) card if you are a NRI. 

  • Canceled cheque 

  • A copy of client master list of demat account.

 

Step 3: Claim Submission to the IEPF Authority 

 

After you are done with all these to claim unclaimed dividends, the company is expectedly to be ready with a verification code within 15 days of claim receiving. And should submit it to the IEPF authority with the claimant’s documentation.

 

Step 4: Refund from IEPF Authority

 

Once the claimant's application for unclaimed dividend gets approved by the verifying company, IEPF Authority steps up its tempo, ensuring to take a prompt decision generally within 2 months. 

 

When the green light of entitlement is there the IEPF Authority and its financial counterpart signal the payment symphony, sending a bill to the Pay and Accounts Officer. With proper entitlements, the claim gets credited to his/her the claimant's Demat account.

 

Conclusion

 

Hopefully, you got proper information about the ways of claiming unclaimed dividends from the IEPF authority. And if you are looking for a smooth share recovery process, you may connect with Share Samadhan. We help to get your money back smoothly in a hassle-free way, saving you from the hassle of committing any flaw. We have experts available at your disposal who will be there to take care of your claim needs.

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