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The Investor Education and Protection Fund (IEPF) stands as a bulwark safeguarding the interests of investors within India. This government program helps return forgotten money like unclaimed dividends and matured deposits to the people who own it through the IEPF refund process. For investors holding unclaimed sums with a company, reclaiming refunds from the IEPF involves navigating a structured step-by-step procedure. In this blog, we'll delve into the intricacies of the IEPF refund process, underscore the significance of claiming unclaimed dividends, and elucidate the sequential steps essential for initiating an IEPF claim.

The inception of the Investor Education and Protection Fund (IEPF) traces back to the Ministry of Corporate Affairs (MCA) initiative. Under Section 205C of the Companies Act of 1956, the foundation of the IEPF Fund was laid, setting the stage for its establishment. To administer and regulate the IEPF Fund, the IEPF Authority was instituted under Section 125(5) of the Companies Act, 2013. This governing body was tasked with the oversight and management of the fund, ensuring its efficacy in safeguarding investor interests.

Elements Closely Associated with IEPF Claim

• Unclaimed dividends and matured deposits find a secure haven within the confines of the IEPF, courtesy of regulations set forth by the Ministry of Corporate Affairs (MCA). These monetary assets, relinquished by companies and other entities, are dutifully transferred to the fund in accordance with stipulated guidelines.

• Unclaimed dividends and proceeds from share sales eventually end up in the IEPF if left unclaimed for a specific period of more than 7 consecutive years.

• The IEPF plays a crucial role in protecting investors' interests. It ensures that any unclaimed money goes back to investors instead of staying with companies, promoting fairness in finance.

• The IEPF Authority, part of the Ministry of Corporate Affairs, oversees the rules for handling unclaimed funds. They manage these funds and make sure that regulations for transferring them are followed, protecting the interests of investors.

Why Do the Shares & Dividends Move to IEPF?

Shares and dividends find their way to the Investor Education and Protection Fund (IEPF) under specific circumstances mandated by the Companies Act of 2013. According to Section 124(5) of the Act, any dividend left unclaimed for 7 consecutive years must be transferred to the IEPF. Similarly, Section 124(6) stipulates that shares for which dividends have not been claimed for 7 or more consecutive years also get transferred to the IEPF.

About IEPF Form-5

Regarding the reclaiming process, investors utilize Form IEPF-5. This form facilitates the refund process for shares and dividends that have been moved to the IEPF. It serves as the official mechanism for the investors’  unclaimed dividends recovery, especially when dividends remain unclaimed over a defined period or when shares are transferred to the IEPF due to a lack of communication from the shareholders.

Facts & Data on IEPF Unclaimed Shares & Investments:

According to a report from Times of India, shares worth between Rs 30,000 crore and Rs 40,000 crore are currently unclaimed and are held by the government. These shares belong to original owners or their heirs who, for various reasons, have not claimed them. In June 2022, the government's Investor Education Fund and Protection Fund (IEPF) held shares valued at just over Rs 13,700 crore from the top 10 most esteemed companies in India. An estimate made three years ago by Jeevantika Consultancy Services showed that the total value of stocks of the BSE’s top 200 most valued companies that the fund had at that time was about Rs 30,000 crore. Approximately 1.5 million shareholders had stocks held by the IEPF. Alternative assessments valued the total shares held by the IEPF from all listed companies at around Rs 40,000 crore. Despite efforts to simplify the process of reclaiming shares entrusted with the IEPF, it is still cumbersome for a shareholder to complete it within the stipulated time. With the case now in the apex court, people working in this field believe the pace will improve and more cases will be resolved.

Recovering shares from the IEPF involves several steps:

1. Start with a consultation between our in-house sales team and the client.

2. Next, our valuation team thoroughly reviews all documents provided by the client.

3. Then, the sales team conducts a feasibility check.

4. Following that, we send a comprehensive proposal detailing fees and the Scope of Work.

5. Once agreed upon, both parties digitally sign the agreement using Aadhar-based authentication.

6. An Operations Executive is then designated to manage all necessary formalities.

7. Finally, any recovered shares are promptly credited to the client's Demat account.

If you find these steps challenging, reach out to Share Samadhan for assistance. We'll assign a dedicated Account Manager to handle the process for you, allowing you to stay at home while they take care of everything.

To file an IEPF claim, you'll need the following documents:

1. Copies of your PAN and Aadhaar, self-attested.

2. A cancelled cheque leaf.

3. A list of your Demat account details verified by both your Depository Participant (DP) and yourself.

4. Self-attestation of the SRN (Service Request Number) recognition.

5. An indemnity bond, witnessed and self-attested by you.

6. A stamped receipt with your self-attestation, witnesses' signatures, and a revenue stamp.

7. A letter from the transfer agent and registrar approved by the nodal officer as proof of entitlement.

8. For ownership proof: original share certificates or a copy of your transaction statement for Demat shares. If you lost your original certificates, include documents submitted for duplicate shares.

9. For foreigners and NRIs: Copy of passport and OCI/PIO card.

10. Any additional documents for name, address, signature change, or duplicate share issuance, as required.

Share Samadhan offers assistance in understanding the complexities of filing an IEPF claim share. With our expert guidance, individuals can sidestep the hassle of gathering and submitting multiple documents themselves. Share Samadhan assigns a dedicated Account Manager to handle all aspects of the claim process, from document preparation to submission, allowing clients to relax in the comfort of their homes while their claim is efficiently processed. Whether it's verifying documents, coordinating with authorities, or ensuring compliance with regulations, Share Samadhan streamlines the entire procedure, providing peace of mind and facilitating a smooth and hassle-free experience for their clients.

When it comes to having an ownership in company, shareholders are part owners of company. However, there are times when shares need to be transferred due to unexpected circumstances. Share Samadhan, India's Largest Unclaimed Investments Retrieval Advisory is right there regardless of the stage at which you encounter obstacles! This blog is a guide to share recovery, about the process of share transmission and its procedural nuances.

What is the Transmission of Shares?

The process that involves transferring possession of shares from one to another due to the death of the shareholder is known as the transmission of shares. Section 56 of the Companies Act of 2013 says that if someone legally inherits or acquires shares, the company can record this ownership change when they're informed about it.

Now, let's talk about the difference between "transmission" and "transfer" of shares. If you've inherited shares due to someone's passing or received them as a gift, that's transmission. However, if you decide to sell those shares to another individual, that's a transfer. They're both ways of changing who owns the shares, but they happen for different reasons.

You must keep in mind that there is a prominent difference between the share transmission and the transfer of shares.

The Transfer & Transmission of Shares: The Difference

Transfer of Shares: When shares are transferred, it means that one shareholder willingly sells or hands over their shares to another person. In this transaction, the current owner (transferor) passes on the ownership of the shares to a new individual (transferee).

Transmission of Sharers: Transmission of shares takes place according to inheritance laws when a shareholder passes away. Unlike a voluntary transfer, it's not a choice made by the shareholder but is instead dictated by the laws of the country.

The Procedure for the Transmission of Shares

For the transmission of Shares, understanding the process is of utmost importance. For shares valued up to 5 lakhs, you need No Objection Certificates (NOCs) from all legal heirs, confirming their consent to the transmission, along with certificates proving their status as legal heirs or surviving members. When the total worth of shares in a single company goes beyond 5 lakhs, it's necessary to acquire a succession certificate, probate of will, or letter of administration from the courts in favor of the legal heirs.

Probate of Will: Probate of will involves the legal validation of a deceased individual's will. This document details how the person's assets and estate should be distributed following their passing. Through the probate process, a court reviews and approves the authenticity of the will, ensuring its terms are carried out as intended.

Succession Certificate: A succession certificate is necessary when someone passes away without leaving a will, meaning they died intestate. This document allows the holder to handle the deceased's financial affairs, including collecting debts and securities owed to them or payable in their name. In the absence of a will, the succession certificate becomes crucial for heirs to assert their rights to the deceased's assets. Application for a succession certificate can be made in a high court or district court.

LOA (Letter of Administration): A Letter of Administration is a legal paper granted by a competent court, allowing a designated individual (known as the administrator) to manage the estate of a deceased person who didn't leave a valid will, known as intestate. The procedure is regulated by the Indian Succession Act of 1925.

When a deceased individual has a will, the legal proceedings differ, and the court might issue a "Probate" to the executor specified in the will. However, if there's no executor named or if the designated executor cannot or does not want to fulfill their duties, the court may issue Letters of Administration with the will annexed.

Legal Heir Certificates or Surviving Member Certificates: Surviving member certificates or legal heir certificates are provided by appropriate legal bodies to confirm the rightful heirs or successors of someone who has passed away. These documents serve to streamline the transfer of assets, properties, and other entitlements from the deceased individual to their lawful heirs. Legal heir certificates are sought for various purposes such as inheritance, property transfers, insurance and pension claims, employment benefits, closure of bank accounts, legal matters, government programs, settling debts, and liabilities.

When Does Transmission of Shares Occur?

Shares can be transmitted under various circumstances:

1. Death of a shareholder: When a shareholder dies, their shares can be passed on to their legal heirs or nominees.

2. Incapacity of a shareholder: If a shareholder becomes incapacitated due to illness or injury and cannot transfer their shares, these shares can be transferred to their legal heirs or nominees.

3. Insolvency of a shareholder: If a shareholder is declared insolvent, their shares may be transferred to their creditors.

4. Court orders: In certain situations, court orders may mandate the transfer of shares from one individual to another.

Legal Heirs and Nominees

Legal heirs are individuals who inherit the assets of a deceased person in accordance with the laws of succession. If the deceased shareholder did not nominate anyone, their shares will be inherited by their legal heirs, determined based on the applicable inheritance laws.

Nominees, on the other hand, are individuals chosen by the shareholder to receive the shares upon their death. Share nomination is a voluntary process that can be completed by filling out a nomination form provided by the company. The shareholder has the freedom to nominate anyone they desire to receive the shares after their passing.

For the transmission of shares, the necessary documentation includes:

1. Death certificate of the shareholder

2. Succession certificate or probate of will (if the transmission is through succession)

3. Share certificate(s)

4. Transfer deed

5. Nomination form (if the transmission is through nomination)

6. Court orders (if required)

Conclusion

The transmission of shares is a crucial procedure that guarantees the seamless transfer of share ownership between individuals. Adhering to the correct protocol is essential to ensure legal validity and accurate transfer to the rightful legal heirs or nominees. If uncertain about the transmission process, it's recommended to seek guidance from a legal expert of Share Samadhan. The executive will assist you throughout the process.

FAQs:

1. Can a shareholder nominate more than one person to receive their shares?

Yes, shareholders can nominate multiple individuals to receive their shares in the event of death, providing flexibility in share transmission according to the shareholder's wishes.

2. What happens if the deceased shareholder does not nominate anyone to receive their shares?

In the absence of a nomination, the shares are inherited by legal heirs as per applicable inheritance laws, ensuring rightful distribution.

3. What is a succession certificate or probate of will?

A succession certificate or probate of will grants legal heirs authorization for the transfer of assets, including shares, facilitating the legal process of inheritance.

4. Is it necessary to obtain a succession certificate or probate of will for the transmission of shares?

Yes, legal heirs need a succession certificate or probate to transfer shares if the deceased shareholder didn't nominate anyone, ensuring proper validation of ownership transfer.

By looking at the insurance claim scenario in India, one of the towering figures that you will find is ICICI Lombard General Insurance Company. Its remarkable growth trajectory since its inception in 2001 mirroring the dynamism of the industry. Notably, in 2017, ICICI Lombard made history by becoming the first general insurance firm in India to go public through a high-profile IPO, solidifying its position as the largest private sector general insurance firm in the country. However, amidst its memorable journey lie stories of unclaimed shares—cases where shareholders fail to encash dividends, and failed in share recovery, leading to shares being transferred to the 'Investor Education and Protection Fund' or IEPF as per statutory regulations. 

So, how can original ICICI Lombard shareholders or their legal heirs reclaim these lost shares? Let's delve into a detailed and comprehensive procedural guide:

Prerequisites Before Claiming Shares

First, check out the several prerequisites that must be met before people opt for shared recovery services from IEPF.

1. Completed 7 Years in IEPF: The shares must complete the mandatory 7-year period within the IEPF.

2. Legal Clean Slate: The shares in the IEPF claim should be free from disputes or legal encumbrances, ensuring a smooth refund process.

3. Valid PAN Card: A copy of a valid PAN card is mandatory to ascertain the claimant's identity, a crucial step in the verification process.

4. Address Proof: Additional proofs certifying the claimant’s address are required, adding an extra layer of authentication to the claim.

Once the investors meet all these criteria, they can proceed to file their refund requests from the IEPF Authority, initiating the process of reclaiming their rightful shares.

Overview of The Share Refund Claim Steps

How to Find Unclaimed Shares in IEPF?

The process of reclaiming shares transferred to the IEPF Authority involves several key steps, each meticulously designed to ensure transparency and adherence to regulatory standards:

Step 1: Verify Share Transfer to IEPF

The first step entails verifying whether the ICICI Lombard shares meet the eligibility criteria for transfer to the IEPF for share recovery. This involves a thorough examination of dividend announcements and the calculation of the years since the non-receipt of dividends—a critical aspect in determining the validity of the claim.

Step 2: File Claim Refund Form IEPF-5

Once the eligibility is confirmed, investors proceed to fill out the E-form IEPF-5, a formal application for the refund of the IEPF unclaimed dividend. This form requires a plethora of details, including the claimant’s information, ICICI Lombard GI details, and the type of refund claim, ensuring that all necessary information is provided for the authorities' review.

Step 3: Initial Processing & Query Resolution

Upon submission of the refund form, the IEPF officials undertake initial processing, meticulously reviewing the provided information for accuracy and completeness. In some cases, queries may be raised, necessitating additional information or proof from the claimant to facilitate a thorough evaluation of the claim.

Step 4: Submit Signed Indemnity Bond

Before the approval of the claim, investors are required to submit signed indemnity bonds to the IEPF Authority, further reinforcing their commitment to the claim and indemnifying the authorities against potential disputes or claims related to the transferred shares.

Step 5: Final Verification Against Company Records

The IEPF Authority initiates a final verification check with ICICI Lombard, corroborating the investor's claim against the company's records. This exhaustive scrutiny ensures the integrity and validity of the claim, safeguarding against potential fraud or misappropriation.

Step 6: Claim Approval Intimation

Upon successful verification, the investor receives formal approval intimation from the competent IEPF authority for IEPF unclaimed shares, signifying the acceptance of the claim. This notification also guides the subsequent steps to be taken by the investor, ensuring clarity and transparency throughout the process.

Step 7: Share Credit by Company

With the claim approved, the process of share recovery is initiated directly at ICICI Lombard or its RTA end. This involves the identification of the pool account where the unclaimed shares are held and the processing of demat transfer delivery instructions for the credit of the specified number of shares to the investor's demat account.

Step 8: Demat Account Crediting by Depository

After ICICI Lombard initiates the process, the depositories, such as NSDL/CDSL, come into play, facilitating the transfer of shares from the IEPF demat account to the investor's demat account. This step assures the seamless transition of ownership rights and the integration of the refunded shares into the investor's portfolio.

Step 9: Final Statement Reconciliation

Following the demat reflectance of shares, a closure final statement is dispatched by the company RTA to the investor, enclosing details of the shares credited from the IEPF, tax certificates if applicable, and other relevant information. This marks the culmination of the shares refund process, providing investors with a comprehensive transaction summary.

A Glimpse at Great Success Stories of Share Recovery from IEPF

Senior Investor Regains Shares in Minda Industries after 13 Years: This story highlights how a Mumbai-based investor reclaimed shares worth Rs 2 lakhs from Minda Industries after a decade-long hiatus, showcasing the potential for investors to rediscover lost assets through the IEPF route.

NRI Regains Shares in Gujarat NRE Coke via IEPF After Returning to India: This narrative exemplifies how an NRI investor reclaimed shares worth thousands of rupees from Gujarat NRE Coke upon returning to India, underscoring the accessibility and effectiveness of the share’s recovery process for investors across geographical boundaries.

Conclusion

Share Samadhan, a trusted share recovery firm in Delhi is your trusted partner in navigating the complexities of share recovery from the Investor Education and Protection Fund (IEPF). With our expert assistance and personalized guidance, we ensure a seamless process for reclaiming your unclaimed shares and dividends. Trust Share Samadhan to help you unlock the value of your investments and regain control of your financial assets efficiently and effectively.

FAQs on Share Recovery from IEPF

Can a stockbroker find unclaimed shares for a client's shares transferred from a broker account to the Fund?

Yes, a stockbroker can file a claim with IEPF on behalf of a client with proper authorization, KYC documents, and old account statements substantiating the client’s ownership of such shares now being claimed from the Fund.

What is ‘Company verification’ before refund claim approval?

Company verification involves extensive authentication with the company’s records to re-confirm investor credentials and entitlements of unclaimed shares/dividends, ensuring correct claimant credentials before final approval.

Can transmission of shares to legal heir happen directly upon filing IEPF refund?

Share transmission legal heirs require submission of probate or succession certificate to establish valid rights over the shares left behind by deceased original shareholders before valid transmission can occur directly.

What is the next process for receiving intimation from IEPF of claim approval after company verification?

Upon receiving claim approval from IEPF, investors can expect shares to be credited to their Demat account and pending unclaimed dividends to be paid directly into their submitted bank accounts within 1-2 weeks.

Can an NRI investor claim an IEPF refund from abroad? What documents are required?

NRI investors can file IEPF claims with the Central IEPF Authority while residing overseas, requiring similar documentation including PAN proof, scanned KYC documents, overseas address proof, passport copies, and FIRC certificates to establish claims seamlessly.

There are crores of rupees lying unclaimed in Provident Fund accounts across the country. Issues like not having the UAN or PF number can mean that the money kept in Provident Funds will lie there unclaimed.

Share Samadhan helps you to make legitimate Provident Fund claims. In case you have forgotten your UAN, or PF number or have not done the KYC, reach out to us for help. We will assist you in the claim process.

In this blog, we will talk about 2 things concerning the Provident Fund. The first is how to withdraw funds from your PF account and the second is how to transfer PF accounts.

Take a closer look.

When Can You Withdraw Money from Your Provident Fund Account?

You can make a full or partial withdrawal from your PF account.

Listed below are the cases under which you can make a full withdrawal.

• When you have retired.
• When you have been unemployed for more than 2 months.

Listed below are the cases under which you can make a partial withdrawal:

• You can withdraw 75% of the EPF contribution if you have been unemployed for more than one month
• You can withdraw money for medical treatment for your family
• Withdrawal is allowed for marriage of children and siblings
• Withdrawal because of post-matriculation education of self and children is also allowed
• You can withdraw from the accumulated money for the construction or buying of a house
• You can also withdraw for the repayment of home loans and house renovation
• Individuals can also withdraw a year before retirement

In these cases of partial withdrawal, there is a fixed amount that the person can withdraw.

How To Withdraw Money from The Provident Fund Account Online?

Step 1: Visit the official website of the UAN and log in with your UAN details. Remember to submit the captcha carefully.

Step 2: Check your KYC details. Once logged in to your account you need to go to the “Manage” tab and choose “KYC”. Then check if your bank details, Aadhaar, and PAN card information are correct.

Step 3: The next move is to click on the “Online Services” tab. Here select the ‘Claim (Form-31, 19, 10C, and 10D)’. This will begin your claim process.

Step 4: In the following screen, you will get all your member details, KYC information, and other details. Input the bank account details and click on Verify.

Step 5: Next, you need to agree to the certificate of undertaking and click on the “Proceed for Online Claim” option.

Step 6: Then you will get the claim form where you have to choose the kind of claim you want to opt for. Choose between full and partial claim options and pension withdrawal options. Specify the details required and proceed.

Step 7: You may have to upload certain documents to substantiate your claim. Some of the documents could be a Universal Account Number, bank account information, identity and address proof, canceled cheque with IFSC, and account number.

In case you have any issues with the claim process and require assistance with the documentation or paperwork, reach out to Share Samadhan, a top provident fund recovery company. 

How To Transfer Your PF Account Online?

When an employee moves from one company to another, they will have to transfer their PF account to the new employer’s account. Given below is the procedure for transferring your PF account.

Step 1: Use your UAN number and password to log in to your account on the official website.  

Step 2: Go to the “Online Services” tab and select “One Member - One EPF Account (Transfer Request)”.

Step 3: Check whether you are eligible to transfer your PF account to another account.

Step 4: Fill in and confirm all the information regarding your previous employer.

Step 5: Fill in and confirm all the information regarding your current employer.

Step 6: Once you are done with steps 4 and 5, you will need to request an OTP. Enter the OTP and click on the Submit button to initiate the transfer process.

In case you require any help with the process, you can reach out to us at Share Samadhan. As financial consultants, we will help you with the entire procedure.

What Are the Documents Required for Transfer of PF Account Online?

To complete the transfer process, you will require a couple of documents. They are as follows:

• Form 13
• Aadhaar Card
• PAN Card
• Bank Account Details
• Previous Employer Details

In case you need to make provident fund, claims and do not have the above-mentioned documents, reach out to a fund recovery company like Share Samadhan. We will help you recover unclaimed PF.

Wrapping Up

Share Samadhan, a prominent financial consultant, can help you legitimately claim your Provident Fund. Reach out to us for all provident fund claims and we will help you to raise a claim and get back your accumulated money.

In India, unclaimed insurance claims are a vast and often overlooked territory, with billions of rupees lying dormant in insurance policies due to various reasons. From misplaced policy documents to the unfortunate demise of policyholders, there are numerous factors contributing to this staggering sum. However, amidst this complexity, there lies an opportunity for consumers to reclaim what is rightfully theirs. In this blog, we'll delve into the nuances of unclaimed money in India and provide valuable insights and tips on how consumers can navigate this landscape effectively, with Share Samadhan's expertise leading the way.

Understanding the Unclaimed Insurance Scenario

As per recent estimates, approximately Rs. 12,000 crore remains unclaimed in life insurance policies in India. This staggering amount is a result of various circumstances such as loss of policy documents, the death of policyholders, closure of bank accounts, non-payment of premiums, and even unawareness about policy maturity. These unclaimed funds often remain idle for years, waiting to be rightfully claimed by beneficiaries.

Types of Unclaimed Insurance Claims

Unclaimed insurance claims typically fall into several categories:

1. Death Claims: When a policyholder passes away, their beneficiaries are entitled to claim the death benefits provided by the insurance policy. However, due to various reasons, these claims often remain unprocessed or unclaimed.

2. Survival Benefits: Some insurance policies offer survival benefits upon maturity, which policyholders or their beneficiaries can claim. However, if policyholders are unaware of the maturity date or fail to claim the benefits in time, the funds remain unclaimed.

3. Maturity Claims: Similar to survival benefits, maturity claims involve claiming the accumulated amount upon maturity of the policy. Failure to claim these benefits leads to funds being left unclaimed.

4. Premium Refunds: In cases where policyholders discontinue their policies or opt for surrender, they may be entitled to receive refunds of premiums paid. However, if not claimed, these refunds contribute to the pool of unclaimed insurance funds.

Tips for Identifying and Claiming Unclaimed Insurance Policies

1. Maintain Proper Documentation: Keeping track of insurance policy documents is crucial. In case of loss or misplacement, contact the insurance provider immediately to initiate the process of reclaiming the policy.

2. Stay Informed: Regularly review your insurance policies and keep track of important dates such as maturity and premium payment deadlines. This ensures that you can claim entitled benefits.

3. Beneficiary Awareness: Ensure that your beneficiaries are aware of the insurance policies you hold and how to claim the benefits in case of your demise. This prevents the funds from remaining unclaimed due to lack of awareness.

4. Utilize Technology: Leverage digital platforms and services offered by insurance providers to track and manage your policies more efficiently. Many insurers offer online portals where you can access policy details and initiate claims.

Share Samadhan: Expertise in Unclaimed Insurance Recovery

Share Samadhan stands out as a leading expert in facilitating the recovery of unclaimed insurance funds. With their specialized knowledge and experience in navigating the complex insurance landscape, they offer valuable assistance to consumers in reclaiming their rightful benefits.

Their services encompass a comprehensive approach to identifying and processing unclaimed insurance claims, whether it be death claims, survival benefits, maturity claims, or premium refunds. Share Samadhan's team of experts diligently works towards ensuring that no policyholder or beneficiary misses out on their entitled benefits due to administrative hurdles or lack of awareness.

Conclusion

The unclaimed insurance landscape in India presents both challenges and opportunities for consumers. By staying informed, maintaining proper documentation, and leveraging the expertise of financial consultants like Share Samadhan, individuals can navigate this landscape effectively and reclaim what rightfully belongs to them. With billions of rupees lying unclaimed, it's time for Indian consumers to take proactive steps toward identifying and claiming their unclaimed insurance policies. After all, every rupee reclaimed is a step towards financial security and peace of mind.