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Before looking at the process of claiming SBI unclaimed shares and dividends that are transferred to the IEPF, it's essential to understand why reclaiming these shares and dividends is crucial. Since its listing on the stock exchanges, SBI shares have consistently been among the top performers in the stock market. For instance, the price per share was around Rs. 18 in the year 2000, and it skyrocketed to Rs. 576 as of November 1, 2022. This appreciation does not even account for any bonus issues or stock splits that may have occurred.

Let's assume you purchased 250 shares of SBI in 2000 at a price of Rs. 18 per share.

Your Total Investment: 250 shares  Rs. 18/share = Rs. 4500

On November 20, 2014, SBI executed a stock split in a 10:1 ratio. This means your 250 shares were converted into 2500 shares.

Now, let's look at the scenario as of November 1, 2022:

The current share price of SBI is Rs. 576.

Current Investment Value: 2500 shares  Rs. 576/share = Rs. 14,40,000

In 2000, an investment of Rs. 4500 for 250 shares of SBI has now grown to a substantial value of Rs. 14,40,000. This transformation includes the impact of the stock split as well as the current market price of the shares.

If you haven't claimed your SBI shares and dividends, the growth in your investment should definitely motivate you to track down and recover those unclaimed shares and dividends.

The Legacy of the State Bank of India

State Bank of India (SBI) is an India-based, state-owned banking and financial services firm, classified as a Public Sector Bank (PSB). It is not only the largest PSB in India but also the country's largest bank overall, followed by HDFC Bank Ltd. SBI operates in various sectors, including Corporate/Wholesale Banking, Treasury, Retail Banking, and other financial/banking services.

The Treasury segment deals with trading in foreign exchange contracts, managing the investment portfolio, and handling derivative contracts. Corporate/Wholesale Banking involves lending activities for large corporate account groups, stressed asset resolution groups, and commercial client groups. It includes providing loans based on clients' credit history and transaction services for institutional or corporate clients. Retail Banking services cover all retail branches, mainly focusing on personal banking activities like providing capital loans to corporate customers with a reliable background and history with the bank. Additionally, SBI's other business segments manage the daily operations of its non-banking subsidiaries or joint ventures, excluding SBI General Insurance Co. Ltd. and SBI Life Insurance Co. Ltd. SBI has nearly 22,100 branches nationwide and operates 58,555 ATMs.

Since its inception, SBI has been a significant revenue generator for the Government of India. It has played a crucial role in financing government projects and welfare schemes. Despite facing various economic slowdowns, SBI has consistently emerged as the best PSB, thanks to its exceptional administration and skilled banking managers.

The COVID-19 lockdown in 2020 did not hinder SBI's growth. The company's shares increased by 10.63% in June, 7.28% in July, and 10.73% in August of that year. Although there was a price dip in September 2020, the shares maintained steady growth over the past five months.

SBI has a strong track record of paying generous dividends, enhancing its reputation for generating reliable profits for investors. In the early days, especially during the economic slowdown of 1992 when India was liberalizing its economy, SBI's shares traded at lower prices. Many investors bought shares at these lower prices and, thinking they wouldn't appreciate, forgot about their investments. However, even small investments in SBI shares back then would have grown significantly if the dividends were claimed.

In the following sections, we'll illustrate through a hypothetical calculation how even a modest investment in SBI shares in 1995 could have multiplied by 2021. This calculation will demonstrate why recovering unclaimed shares or dividends from SBI is a profitable endeavor.

Evaluating the Growth of SBI Shares

Imagine your grandfather purchased 500 shares of the State Bank of India (SBI) in November 1998. At that time, the price of each share was Rs. 14.19. Thus, the total value of his investment was:

500shares×Rs.14.19/share=Rs.7,095(Seven Thousand Ninety-five

While this amount seems modest, it’s possible that your grandfather may not have paid much attention to the dividends generated from this relatively small investment.

In 2014, SBI announced a stock split in a 1:10 ratio, meaning every share of Rs. 10 was split into 10 shares of Rs. 1. This move was aimed at making shares more accessible to smaller retail investors who might have found the higher price prohibitive.

After the split, the number of shares held by your grandfather increased from 500 to 5000. Despite the split, the value of the shares continued to rise. By February 2021, the share price had climbed to Rs. 390.15, making the total investment value:

5000shares×Rs.390.15/share=Rs.19,50,750(Nineteen Lakhs Fifty Thousand Seven Hundred Fifty)

Thus, a modest investment of Rs. 7,095 in 1998 would have grown to Rs. 19,50,750, reflecting an impressive growth of approximately 27,500%. This calculation only considers the increase in share price. Including dividends paid by the company over the past 23 years, the total returns could easily surpass Rs. 30 lakhs.

This example demonstrates how an investment in SBI two decades ago could have multiplied exponentially in value. Therefore, if you or your relatives have any dormant shares from old investments in SBI, recovering them could prove to be highly profitable. However, retrieving these shares through traditional methods, such as presenting physical share certificates, may no longer be feasible. The government has introduced new rules for claiming dividends older than seven years, so it's essential to familiarize yourself with these regulations before attempting to make a claim.

In the following sections, you will find data sheets and information detailing the dividends released by SBI over the past two decades, as well as information on unclaimed dividends. Review these sheets to better understand the dividends before learning about the process for getting a refund of unclaimed shares from the IEPF.

SBI Dividends Data

Source: https://in.investing.com/equities/state-bank-of-india-historical-data-dividends

How was IEPF Formed?

The Investor Education and Protection Fund (IEPF) was established by the Central Government in 2016 to tackle the growing issue of unclaimed or dormant shares and dividends. Small retail investors often overlooked their investments due to initially modest returns. Over time, as the returns grew significantly, these investors would eventually seek to reclaim their now valuable dormant shares.

Previously, there was no standardized process to handle such situations. Some companies would transfer unclaimed dividends to government welfare accounts to be used for public benefit, while others retained the dividends, anticipating that investors might return to claim them. However, this lack of regulation led to questionable practices, as companies could exploit these dormant funds for their own purposes.

To address this, the government established the IEPF Authority as a statutory body to manage and regulate dormant funds and unclaimed dividends. The authority employs fund managers who handle claims related to dormant funds and are responsible for creating rules and regulations governing the transfer of unclaimed dividends. This initiative aimed to regularize dormant funds and ensure they are managed transparently and fairly.

Understanding the Investor Education and Protection Fund (IEPF) and its Objectives:

Established under Section 125 of the Companies Act of 2013, the Indian government founded the Investor Education and Protection Fund and this regulatory framework aims to oversee and safeguard investor funds effectively.

The IEPF is tasked with various responsibilities, including facilitating refunds and reclaiming shares, matured deposits/debentures, and unpaid dividends. Additionally, it plays a crucial role in raising investor awareness and ensuring reimbursement for legal expenses incurred in legal proceedings.

Steps to Claim Dividends and SBI Shares via the IEPF:

1. Access the IEPF-5 form on the MCA interface through the IEPF website. It's essential to carefully review and adhere to the instructions provided in the instruction package available on the website.
2. Fill out and submit the form. Upon submission, you will receive a "Submit Request Number" as an acknowledgment (SRN). Keep this SRN for future reference when tracking the form's progress.
3. Print the completed form along with the acknowledgment.
4. Send the original copies of the indemnity bond, acknowledgment copy, share certificate, and IEPF Form 5 to the company's registered office's Nodal Officer (IEPF). Ensure to label the envelope as "Claim for a refund from IEPF Authority" and enclose a self-attested copy of your Aadhaar card along with the necessary information.
5. The company's nodal officer will review the claim form before forwarding it to the IEPF authorities. Upon verification, the IEPF authorities will transfer any unclaimed shares and dividends to the client's account.
6. Expect a response from the IEPF authorities within 60 days of receiving the company's verification report.

It's worth noting that since the IEPF has only one office located in Delhi, the process of obtaining a refund may take around 8 to 12 months.

Determining if the IEPF holds SBI Shares:

To check if your SBI shares are with the IEPF, follow these steps:

1. Check the online portal to proceed.
2. Enter the investor's details, including name, father's name, folio number, DP-ID, client ID, and account number.
3. Click the search button to initiate the IEPF share search process.

Why Legal Assistance is Essential for Claiming SBI’s Dormant Shares

In previous sections, we examined how a small investment in SBI shares during the 90s has significantly increased in value today. We also reviewed the dividend data released by the company and the status of unclaimed shares according to the annual report. After understanding the role of the IEPF, it's crucial to explain why hiring a legal consultant is necessary before you proceed with claiming dormant SBI shares.

For shares that have been dormant for more than seven years, or those bought by your father or grandfather, the process of claiming these shares starts by filing Claim Form 5 on the IEPF’s website. Once the claim is raised, the claimant must send a printout of the completed form along with all relevant documents, including share ownership papers, to the designated transfer agent or registrar of SBI. The transfer agent verifies all the documents and prepares a verification report. This report, along with the documents, is then sent to the IEPF authority, which makes the final decision on sanctioning the claim.

You might have noticed that document scrutiny happens at both stages: first by the nodal officer or transfer agent, and then by the IEPF fund manager. If any documents are missing, the claimant will be asked to provide them. Any mistakes in the form will need to be rectified by the claimant. If there are any issues with the ownership documents or in proving heirship over the old shares, the application might be rejected entirely. This makes the process of claiming dividends or shares quite tedious and time-consuming for an average claimant. Finding time to furnish documents or meet in person to clear doubts or correct mistakes can be challenging. Proving ownership or heirship can also be difficult, especially if multiple heirs are involved.

These issues can be easily avoided by hiring a legal consultancy firm to handle the dividend claim from the IEPF. A consultancy firm, for a reasonable fee, will manage the entire process for you, including liaising with the authority or nodal officer regarding any document-related matters. Proving ownership of shares will also be more straightforward with the expertise of legal consultants. This is why having a legal consultancy firm by your side is essential before applying to claim funds from the IEPF.

Conclusion

We've explored how an investment in SBI shares made in 1998 could have yielded an impressive return of nearly 27,500%, and that’s without accounting for the dividends over the years. If this staggering figure doesn’t illustrate the value of claiming SBI shares from the IEPF, it’s hard to imagine what will. SBI shares have consistently proven to be profitable, reinforcing its status as one of India’s most esteemed banks. Alongside LIC and Indian Railways, SBI stands out as one of the most valued public sector undertakings of the Government of India. Hiring a legal consultant like Share Samadhan, to search unclaimed dividends should be seen as a small investment with the potential for substantial returns. Given the remarkable growth of SBI shares and the consistent, generous dividends, even recovering a modest amount from the past can be highly profitable.

As one of India's largest Public Sector Undertakings (PSUs), the Oil and Natural Gas Corporation (ONGC) has long been a dependable asset for investors. This state-owned giant has played a crucial role in India's development since independence, consistently rewarding its shareholders with substantial dividends. This piece will explore ONGC's journey to becoming one of the nation's most profitable PSUs. We'll delve into a hypothetical investment scenario to illustrate how a modest investment in ONGC during the 1980s could yield significant returns today. Additionally, we'll examine the IEPF claim and the process of recovering old and ONGC unclaimed shares transferred to IEPF (Investor Education and Protection Fund).

The Evolution and Impact of the Oil and Natural Gas Corporation

The Oil and Natural Gas Corporation (ONGC) is a state-owned entity specializing in oil and In 1956, the Ministry of Natural Resources and Scientific Research, Government of India, established the Oil and Natural Gas Commission (Commission) to advance oil and natural gas exploration and mining efforts in the country. By October 1959, the Commission evolved into a statutory body under the Oil and Natural Gas Commission Act, of 1959, with a mandate to plan, promote, organize, and execute programs for resource development, production, and sale of petroleum products.

The company, Oil and Natural Gas Corporation Limited was incorporated under the Companies Act on June 23, 1993, receiving the certificate of commencement on August 10, 1993. With the enactment of the Oil and Natural Gas Commission Act (Transfer of Undertaking and Repeal) Act, 1993, all assets, liabilities, and obligations of the Commission were transferred to the company on February 1, 1994.

Source: https://www.moneycontrol.com/company-facts/oilnaturalgascorporation/history/ONG:~:text=1956 -Oil and Natural Gas,economic growth of the country.

Oil and Natural Gas Corporation (ONGC), a prominent public sector enterprise in India, has had a significant presence in the stock market. Listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE), ONGC is a key constituent of the BSE SENSEX and the S&P CNX Nifty indices, reflecting its influence in the Indian market. In 1996, ONGC issued 3,428,537,716 shares to the President of India, strengthening the government's stake in the company. Additionally, 1,076,440,366 equity shares were issued as bonus shares, demonstrating the company's robust financial health and its commitment to rewarding shareholders. However, 6,639,910 equity shares were delisted during this period. As of March 31, 2013, the Government of India held a substantial 69% equity stake in ONGC, underscoring its strategic importance. Over 480,000 individual shareholders collectively owned around 1.65% of its shares, with the Life Insurance Corporation of India (LIC) emerging as the largest non-promoter shareholder, holding a 7.75% stake. This extensive shareholding structure highlights the widespread trust and confidence in ONGC's performance and potential.

Source: https://en.wikipedia.org/wiki/Oil_and_Natural_Gas_Corporation#Listings_and_shareholding https://www.moneycontrol.com/company-facts/ongc/history/ONG

Bonus History:

Source: https://www.moneycontrol.com/company-facts/oilnaturalgascorporation/bonus/ONG

Split History:

Source: https://www.moneycontrol.com/company-facts/oilnaturalgascorporation/splits/ONG

ONGC Share Price Advanced Chart:

Source: https://www.moneycontrol.com/india/stockpricequote/oil-drillingexploration/oilnaturalgascorporation/ONG#goog_rewarded

Calculations Related to ONGC Shares

Suppose your grandfather bought 500 shares of Oil and Natural Gas Corporation (ONGC) in April 1990.

1. Bonus in 2006 (1:2 Ratio):
   - For every 2 shares owned, the company gave 1 additional share.
   - Original number of shares: 500
   - Additional shares: 500 / 2 = 250
   - Total shares after the bonus: 500 + 250 = 750
2. Bonus in 2010-11 (1:1 Ratio):
   - For every share owned, the company gave 1 additional share.
   - Original number of shares: 750
   - Additional shares: 750
   - Total shares after the bonus: 750 + 750 = 1500
3. Stock Split in 2010-11 (1:2 Ratio):
   - Each share of Rs. 10 was split into 2 shares of Rs. 5.
   - Original number of shares: 1500
   - Total shares after the stock split: 1500 * 2 = 3000
4. Bonus in 2016 (1:2 Ratio):
   - For every 2 shares owned, the company gave 1 additional share.
   - Original number of shares: 3000
   - Additional shares: 3000 / 2 = 1500
   - Total shares after the bonus: 3000 + 1500 = 4500
5. Value of Shares in July 2024:
   - Number of shares: 4500
   - Current share price: Rs. 274.75
   - Total value of shares: 4500 * 274.75 = Rs. 12,363,750

So, your grandparents’ initial investment of 500 shares has grown to 4500 shares, worth Rs. 12,363,750 in July 2024. This demonstrates a significant increase in value over the past 34 years. If we also consider the dividends received during this period, the total return on investment would be even higher.

Thus, an initial investment in ONGC shares would have grown tremendously, showcasing the company's strong performance and growth in the petroleum sector, both domestically and internationally.

Dividend Summary

For the year ending March 2024, Oil and Natural Gas Corporation (ONGC) has declared an equity dividend of 245.00%, amounting to Rs 12.25 per share. With the current share price at Rs 276.30, this results in a dividend yield of 4.43%.

ONGC has a strong track record of dividend payments, consistently declaring dividends for the past five years.

Source: https://www.moneycontrol.com/company-facts/oilnaturalgascorporation/dividends/ONG

Formation of the Investor Education and Protection Fund (IEPF)

The Central Government established the Investor Education and Protection Fund (IEPF) in 2016 to tackle the growing problem of dormant and unclaimed shares. Historically, shares were often purchased at low prices and subsequently overlooked by shareholders, particularly when these shares showed minimal growth over five or ten years. However, as time passed and these shares appreciated significantly, shareholders would return to claim their dividends.

Before the IEPF's creation, there was no standardized mechanism to manage such scenarios. Companies faced challenges in verifying ownership and calculating dividends for dormant funds after many years. Some companies would transfer unclaimed dividends to the government's public welfare account, leaving no funds for returning investors. Others retained the dividends for years, utilizing the money for their own benefit while claiming they were waiting for shareholders to reclaim their dividends.

This lack of regulation led to the accumulation of black money. Companies often kept the unclaimed funds without detailed accounting, simply labeling them as dormant funds with no known claimants. To address these issues and bring transparency, the government established the IEPF Authority. This statutory body was tasked with enforcing regulatory norms for dormant funds and unclaimed dividends.

The IEPF Authority employed fund managers to handle claims related to unclaimed funds and framed rules for the transfer of dormant funds and unclaimed dividends. This initiative aimed to regularize the management of these funds and protect investors' interests.

IEPF Authority Rules on Dormant Funds

The IEPF Authority frequently updates its regulations concerning unclaimed dividends held by listed companies. According to the current rules, companies are required to publish a list of unclaimed dividends along with investor details on their websites every fiscal year. This practice ensures transparency in disclosing data related to unclaimed dividends.

Additionally, the IEPF mandates that companies appoint a Nodal Officer responsible for addressing and resolving complaints related to IEPF unclaimed shares and dividends. The Nodal Officer also manages the company's special unclaimed dividend account, which is a compulsory account under IEPF regulations. This account holds unclaimed dividends for seven years, starting 30 days after the dividends are declared. After these seven years, any remaining unclaimed shares are transferred to the IEPF.

The Nodal Officer must also send a verification report to the IEPF fund manager. This report, accompanied by other required documents, must be submitted within 15 days of receiving a claim application from the claimant. Failure to comply with these regulations can result in enforcement actions from the IEPF Authority.

Moreover, companies are required to inform the IEPF of any changes to the positions of the Nodal Officer or Deputy Nodal Officer to ensure continuous compliance with the regulations.

The Necessity of Legal Help to Claim ONGC’s Shares

In earlier sections, we examined how a modest investment in ONGC shares could grow significantly over time. We also reviewed the company’s annual reports to trace past dividend transfers to the IEPF and the yearly dividends paid to stockholders. Now, let's explore the process of claiming unclaimed shares from the IEPF and understand why legal assistance can be crucial.

If you have unclaimed ONGC dividends that have not exceeded seven years, you can inquire about the status of these funds through the company's nodal officer. Investors can search for their share details and contact ONGC’s appointed agent and registrar with proof of share ownership and relevant documents.

The nodal officer maintains comprehensive records of shares owned by investors, allowing even long-term shareholders to inquire about the status of their holdings. For shares dormant for more than seven years, the process involves the IEPF authority. Here’s a step-by-step guide to the process:

1. Inquiry and Documentation:
   - Request stock details from the nodal officer.
   - Apply on the IEPF portal with these details.
   - Download the filled application form and compile all required documents as specified by the IEPF.
2. Submission to Nodal Officer:
   - Submit the compiled documents and application form to the nodal officer.
   - The nodal officer verifies the documents and prepares a verification report within 15 days.
3. Final Verification by IEPF:
   - The verification report and claim form are sent to the IEPF authority.
   - The IEPF fund manager reviews the claim, potentially requesting additional documents, approving the claim, or rejecting it.

Given the stringent scrutiny by the IEPF fund manager, additional documentation is often required. Maintaining continuous communication with the IEPF throughout the claim resolution period can be challenging for individual investors. This is where legal and financial consultancy firms become invaluable:

- Expert Liaison: These firms have the expertise to liaise with the IEPF authority and nodal officer, ensuring all necessary documents are provided promptly.

- Comprehensive Support: They assist in verifying and compiling required documents, streamlining the application process.

- Handling Complications: If the original shareholder has passed away, these firms can help claim ownership on behalf of heirs.

- Efficient Resolution: Legal and financial consultants can expedite the process, reducing the burden on investors and increasing the likelihood of a successful claim.

In conclusion, while the IEPF and nodal officer play crucial roles in the claims process, the complexity and stringent requirements often necessitate professional assistance. Hiring a legal and financial consultancy firm ensures that all aspects of the claim are managed effectively, providing peace of mind and a higher chance of recovering the IEPF unclaimed shares.

In this piece, we’ve explored the necessity of hiring a financial and legal consultancy to claim unclaimed dividends transferred to the IEPF. We also delved into the remarkable growth of ONGC, highlighting its extensive progress since its inception, recent international collaborations for gas and petroleum exploration, and significant research into alternative energy sources. These factors underscore a promising future for ONGC, reflecting the increasing investor trust and the substantial dividends the company has consistently provided.

Given these reasons, recovering ONGC shares from the IEPF emerges as a highly profitable decision. Engaging a reputable financial consultancy can simplify this process significantly. Business owners and individual investors can save valuable time and effort by relying on these firms to handle interactions with nodal officers and the IEPF authority. The significant growth in ONGC shares presents a lucrative opportunity for those who have recently discovered old physical shares passed down from their grandparents or parents. We strongly recommend consulting a legal and financial advisory firm such as Share Samadhan promptly if you possess ONGC's old physical unclaimed shares transferred to the IEPF. This strategic move can unlock substantial capital and ensure a smooth recovery process.

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.