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When an asset changes hands, it's called a transfer. This change could involve the physical relocation of the asset, the transfer of ownership rights, or both. In the case of securities, transfers can be either voluntary, where the current holder chooses to transfer them, or mandatory, as dictated by law. Transferring shares, for instance, is a voluntary action initiated by the shareholder through a contractual agreement. Conversely, the transmission of shares occurs automatically due to legal procedures, such as upon the shareholder's death or if they become insolvent or incapacitated.

What is the Transfer of Shares?

Transferring shares involves purposefully passing ownership of the shares from the transferor to the transferee. In the case of a public company, shares can generally be transferred without restriction, unless the company has valid grounds to prevent it. However, in a private limited company, share transfers are limited, except in specific circumstances. To effect the transfer, a transfer deed is typically drawn up and executed.

Why Does Share Transfer Occur?

Share transfers occur for various reasons, each involving the transfer of ownership from one party to another:

1. Sale Transaction: The original holder sells shares to a buyer in exchange for monetary consideration, facilitated by a share transfer deed.
2. Gifting: Shares are voluntarily given to another eligible recipient as a gift, without monetary exchange, typically formalized through a gift deed.
3. Lending Shares: In securities lending, shares are temporarily transferred from lender to borrower as collateral, with reversion to the lender after the lending period ends.
4. Transmission Errors: Incorrect recording of shares, especially in joint ownership structures, may necessitate technical transfers for rectification. For instance, shares recorded only under a grandparent instead of under a lineage of grandparent, father, and child, may require a technical transfer through the father for correction.

These scenarios demonstrate the diverse situations in which legal ownership of shares changes hands between parties or entities.

Duration for Finalizing Share Transfers

According to SEBI regulations, listed companies are required to finalize share transfer procedures promptly. Demat requests must be completed within 15 days of receipt, while physical share certificates submitted should be processed within 1 month. Any delays beyond these stipulated timelines can result in companies being liable for paying penal interest to affected shareholders.

In instances where share transfer requests are rejected due to discrepancies in documentation or if the company declines the transfer for specific reasons, the applicant must be notified within 30 days of receipt. This notification should include detailed reasons for the rejection, enabling the applicant to take corrective measures if necessary.

What is the Transmission of Shares?

Transmission of shares occurs automatically as a result of legal circumstances, such as the death of the shareholder, their incapacity due to lunacy, or insolvency. Similarly, if the shareholder is a company that has been dissolved, transmission occurs. Unlike in the transfer of shares, there is no requirement for a transfer deed. Instead, the rights to the shares are passed directly to the transferee, with transmission being officially recognized once the transferee provides evidence of their entitlement. In the event of the shareholder's death, the shares are transferred to their legal representative, while in cases of insolvency, they are transferred to the official assignee.

Reasons for Share Transmission

Share transmission typically occurs due to the following common situations, primarily revolving around the death of the original shareholder:

a) Absence of Nominee Registration:

• Transfer of shares through the execution of a will, wherein the shares are bequeathed to legal successors.
• Application of succession laws, particularly in cases where no will exists, determining the distribution of assets.

b) Nominee(s) Registered:

• Direct transfer of shares to the nominee(s) as per the shareholder's nomination form directive.
• Instances where Class I heirs reject shares, leading to the transmission of shares to Class II nominees with limited rights.

In essence, the occurrence of shareholder demise, coupled with nomination or proper succession planning, facilitates share transmission, averting potential legal complexities surrounding ownership disputes by establishing clear succession rights.

Timeline for Completing Transmission of Shares

Due to the intricacies involved in verifying legal heirship claims, the regulatory timelines for completing the transmission process are relatively extended. As per SEBI regulations, companies are obligated to finalize transmission formalities within a timeframe of 1 to 3 months from the submission date, depending on whether the shares are held in physical or dematerialized (demat) form.

Failure to adhere to these timelines by companies may necessitate compensatory measures, such as the payment of penal interest to the legal heirs, akin to delays observed in share transfers. Additionally, companies are required to provide status updates within 20 days, elucidating the processing stage of the transmission request and specifying the expected completion timelines.

Provisions in the Companies Act, 2013 and Companies (Share Capital & Debenture) Rules, 2014 Govern the Processes of Transfer of Shares and Transmission of Shares:

Transfer of Shares:

Share transfer occurs upon submission of a proper instrument of transfer, Form SH-4, as outlined in Rule 11 of the Companies (Share Capital & Debenture) Rules, 2014. This document must be duly stamped, dated, and executed by or on behalf of both the transferor and the transferee, detailing essential information such as names, addresses, and occupations. It should be delivered to the company by either party within 60 days of execution, along with the relevant securities certificate or letter of allotment. In cases of transfer of partly paid shares, the transferor must provide Form SH-5, as per sub-rule 3 of Rule 11, to the transferee, who must then give their no objection within 2 weeks of receiving the notice.

Transmission of Shares:

Transmission of shares occurs when the application, accompanied by pertinent documents, is deemed valid. Unlike in share transfer, the execution of a transfer deed is not necessary. The required documents for share transmission include a certified copy of the death certificate, a self-attested copy of PAN, relevant legal documents such as a succession certificate, probate of will, will, letter of administration, or court decree, and the specimen signature of the successor.

Consequences of Non-Compliance

Failure to comply with the aforementioned regulations incurs penalties. If a company fails to adhere to these rules, it faces a fine ranging from Rs. 25,000 to Rs. 5,00,000. Additionally, any officer of the company found to be in default may be subject to a fine ranging from Rs. 10,000 to Rs. 1,00,000.

While both share transfer and share transmission involve changing ownership of shares, they differ in initiation. Share transfer is voluntary, initiated by either the transferee or transferor, whereas share transmission is enforced by law, initiated by the legal representative or receiver.

In summary, understanding the difference between transfer and transmission of shares is crucial for managing ownership changes in listed company securities efficiently. Share transfer involves the intentional sale or gifting of shares, requiring thorough documentation and active participation from both parties. On the other hand, share transmission occurs automatically upon the death of a shareholder, with shares inherited by legal heirs or nominees. While transfer procedures typically take 15 to 30 days, transmission may require 1 to 3 months due to complexities in verifying legal heirship. While transfer incurs various costs, transmission usually involves fewer expenses. Investors must grasp these distinctions, understand the required documentation, processing timelines, and associated costs to direct ownership changes effectively and avoid complications. Clarity on whether a situation warrants transfer or transmission procedures ensures a smooth transition.

Ankit Agarwal, a client, approached us with the task of transmitting shares inherited from his late father, Shyam Agarwal. These shares, worth over a crore, had also been moved to the Investor Education and Protection Fund (IEPF). Initially, we assumed it would be straightforward to assist Ankit in claiming these shares. Our team at Share Samadhan believed that with effort, we could easily proceed with the transmission.

Understanding Ankit's Needs

During our first meeting, Ankit expressed his desire to transfer his father's shares directly to his Demat account. He assured us that his mother, Mrs. Shanthi Agarwal, and his two sisters, Mrs. Prachi Jalan and Mrs. Sanjana Vaidya, had no objections to his claim and would provide No Objection Certificates (NOCs).

We promptly prepared a service agreement and began collecting essential documents, including the Legal Heir Certificate and the share certificates in Ankit's possession. It seemed we were on a clear path to resolution.

The Unexpected Challenge

However, upon examining the Legal Heir Certificate, we discovered an unexpected complication. The certificate listed a fifth heir, Mrs. Mansi Agarwal, Shyam's mother. Ankit explained that the certificate had been issued 12 years ago, after Shyam's death, when Mansi Agarwal was still alive. There was a layer of complexity to the transmission process after she had passed away.

Twisted Heirship

The presence of Mrs. Mansi Agarwal on the Legal Heir Certificate meant that, upon her death, her share of Shyam's estate would be inherited by her legal heirs. Mansi Agarwal and her husband had seven children, 4 of whom had already passed away, leaving behind a total of 15 children  who were legal heirs(Mansi Agarwal's grandchildren):

- Late Priti (3 children)

- Late Kamla (1 child)

- Ms. Babita (alive)

- Late Prajakta (8 children)

- Lakhsman (alive)

- Late Shyam (3 children, including Ankit Agarwal)

- Pankaj (alive)

The Emotional Turmoil

The realization of this complex family web brought an emotional dimension to the case. Ankit Agarwal, already grieving his father's loss, now was in need of either obtaining NOCs from all 18 legal heirs or sharing a portion of the shares with them. The weight of understanding these family dynamics added a personal and emotional challenge to what was initially perceived as a straightforward process.

Moving Forward

Ankit had to consider the implications of involving his extended family, who may have varying degrees of attachment and interest in the shares. The decision was not merely a legal one but also deeply personal, requiring sensitivity and understanding.

Success Through Persistence

After 2 long years of persistent effort, Ankit Agarwal successfully obtained all the necessary NOCs from the 18 legal heirs. Our team at Share Samadhan meticulously went through the legal complexities and family dynamics, ensuring that every detail was addressed with care and precision.

Finally, we were able to recover all the investments and transfer the shares to Ankit's Demat account. This outcome was a testament to our expertise and dedication. Professional companies like Share Samadhan can achieve such results within 2 years, whereas if Ankit had attempted this process on his own, it could have taken more time and involved much greater frustration and headache.

Our Commitment

At Share Samadhan, we pride ourselves on our ability to handle even the most intricate cases with efficiency and empathy. We are committed to delivering timely and effective solutions for our clients, ensuring that they receive every penny due to them without unnecessary delays. Ankit Agarwal's successful recovery of his father's shares is a shining example of what can be accomplished with the right professional support.

Aditya Sharma's father, the late Shri Rajesh Sharma, had been a prudent investor, meticulously building a portfolio of physical shares over the years. However, after Rajesh's passing, Aditya found himself in a predicament - he had no idea where his father's share certificates were, let alone how to go about reclaiming them.

"It was a challenging task," recalls Aditya. "I knew my father had investments in various companies, but I had no idea where the physical share certificates were kept. I didn't know where to start."

Determined to recover his rightful inheritance, Aditya reached out to the team at Share Samadhan, a leading provider of share recovery services based in Delhi. "The moment I explained my situation, they understood the gravity of the problem and assured me that they would guide me through the entire process," says Aditya.

The Path to Recovery

The Share Samadhan team began by meticulously combing through Rajesh's financial records, piecing together a list of the companies in which he had invested. "It was no less than a complex puzzle," added Aditya. "But the team at Share Samadhan was relentless in their pursuit, leaving no stone unturned."

Once the list of companies was compiled, the next step was to initiate the process of share recovery. "The team at Share Samadhan helped me navigate the intricate procedures required to claim the shares," explains Aditya. "They assisted me in filing the necessary applications, obtaining the required documentation, and coordinating with the respective companies."

The 1st Step of Getting a Duplicate Share Certificate:

Aditya Sharma's journey to reclaim his late father Rajesh Sharma's investment portfolio was dealt with by the expert team at Share Samadhan. First, they guided Aditya through the intricate process of obtaining duplicate share certificates for the physical shares his father had invested in over the years. This involved Aditya filing the necessary police complaint and obtaining the required documentation, including the indemnity bond and succession certificate. Share Samadhan then coordinated with the respective companies to initiate the duplicate issuance procedure, which included publishing the mandatory newspaper advertisements and obtaining the companies' approvals. Within the stipulated 36-working-day timeline, Share Samadhan ensured that Aditya received the Letter of Confirmation for the shares, which he then promptly deposited with his depository participant for dematerialization.

The Final Step:

With the duplicate share certificates in hand, Share Samadhan then expertly guided Aditya through the transmission of shares process following his father's passing. They assisted Aditya in obtaining the necessary legal documents, including the succession certificate from the court, as the value of the shares exceeded ₹5 lakhs. Share Samadhan then coordinated with the respective companies to initiate the transmission procedure, ensuring Aditya submitted the required application forms and supporting documents. Throughout the process, the team ensured compliance with all regulatory requirements, including publishing the mandatory newspaper advertisements. With their diligent efforts, Aditya was able to seamlessly transfer the ownership of his late father's shares to his name, reclaiming his rightful inheritance valued at over ₹6 crores.

 The Treasure Trove

To Aditya's surprise, the shares his father had invested in over the years amounted to a substantial sum. "When the team at Share Samadhan finally provided me with the details, I was astounded," he says. "Didn’t know that my father had such a portfolio that the value of the shares would be in the crores!"

The breakdown of the recovered shares was as follows:

- Reliance Industries: 5,000 shares valued at ₹2.5 crores

- Infosys: 3,000 shares valued at ₹1.8 crores

- HDFC Bank: 2,500 shares valued at ₹1.2 crores

- Tata Consultancy Services: 1,800 shares valued at ₹90 lakhs

"I couldn't believe my eyes," Aditya exclaims. "It was like uncovering a treasure trove that had been hidden away for years. The team at Share Samadhan had truly worked wonders in helping me reclaim my rightful inheritance."

Overcoming the Complexities

The process of share recovery, however, was not without its challenges. "The team at Share Samadhan guided me through the intricate procedures required to claim the shares," says Aditya. "From obtaining the necessary documentation to coordinating with the various companies, they ensured that every step was executed flawlessly."

One of the key hurdles was the requirement to obtain a succession certificate, a legal document that certifies the rightful heir to the deceased's assets. "The team at Share Samadhan assisted me in navigating the legal system and obtaining the succession certificate," Aditya explains. "Without their expertise, I would have been lost in the maze of paperwork and bureaucracy."

A Happy Ending

After months of diligent work, Aditya's persistence paid off. "The team at Share Samadhan worked tirelessly to ensure that every detail was taken care of," he says. "They kept informing me every step of the way, and their commitment to my case was truly remarkable."

Aditya' with his possession can finally breathe a sigh of relief. "It's like a weight has been lifted off my shoulders," he says. "Thanks to the team at Share Samadhan, I've been able to reclaim my father's legacy and secure my financial future."

Aditya's story is a testament to the power of determination and the importance of seeking expert guidance. "If it weren't for the team at Share Samadhan, I would have never been able to uncover this hidden treasure," he concludes. "Their expertise and dedication have truly made all the difference."

Wipro Limited (NYSE: WIT, BSE: 507685, NSE: WIPRO) is one of the leading providers of technology and consulting services, specializing in pioneering solutions tailored to meet the complex needs of clients navigating digital transformation. Leveraging the expertise spanning consulting, design, engineering, operations, and emerging technologies, they empower customers to achieve ambitious objectives and build resilient, enduring enterprises.

With a global presence spanning 66 countries and a workforce exceeding 250,000 dedicated professionals, Wipro is renowned worldwide for its comprehensive service portfolio, commitment to sustainability, and exemplary corporate responsibility practices.

The Value Wipro Has Created Over 22 Years

Before discussing the process of claiming Wipro's unclaimed shares and dividends transferred to the  Investor Education and Protection Fund (IEPF), let's explore the significance of claiming these shares and dividends. Since its listing on stock exchanges, Wipro's shares have consistently been top performers in the stock market.

For instance, in the year 2000, the per-share price of Wipro was approximately Rs. 52. As of June 19, 2024, this price has increased to Rs. 495.25, excluding any bonuses or splits.

Let’s consider a hypothetical scenario where you purchased 100 shares of Wipro in 2000 at Rs. 52 per share:

Initial Investment: 100 shares * Rs. 52 = Rs. 5200

Bonus Shares History:

a) Bonus Shares on June 25, 2004 (2:1)

   - Number of Shares after bonus: 100 shares * 3 = 300 shares

b) Bonus Shares on August 22, 2005 (1:1)

   - Number of Shares after bonus: 300 shares * 2 = 600 shares

c) Bonus Shares on June 15, 2010 (2:3)

   - Number of Shares after bonus: 600 shares * 5/3 = 1000 shares

d) Bonus Shares on June 13, 2017 (1:1)

   - Number of Shares after bonus: 1000 shares * 2 = 2000 shares

e) Bonus Shares on June 6, 2019 (1:3)

   - Number of Shares after bonus: 2000 shares * 4/3 = 2666 shares

Thus, if you initially purchased 100 shares in 2000, you would now own 2666 shares after all the bonus issues.

Current Market Value:

Current Market Price of Wipro (as of June 19, 2024): Rs. 495.25 per share

Total Value of Investment Now: 2666 shares * Rs. 495.25 = Rs. 1,320,716.50 (~13.2 lakhs)

Therefore, an initial investment of Rs. 5200 in Wipro shares in 2000 would be worth approximately Rs. 13.2 lakhs as of June 2024, not accounting for any dividends received over the years. If your shares have gone to IEPF, this represents a substantial value, making IEPF claim  of your shares and dividends a mandatory task to realize this significant financial benefit.

Wipro Share Price Chart from the Beginning:

Wipro Dividend History Table:

Source: https://www.moneycontrol.com/company-facts/wipro/dividends/W

Issue of Duplicate Share Certificate- The Steps

Physical share certificates are critical as they serve as proof of share ownership. However, these certificates can sometimes be destroyed, misplaced, forgotten, or lost due to various circumstances.

Recently, an individual approached Share Samadhan, the leading share recovery firm in Delhi for recovering shares and dividends from IEPF, assistance in issuing duplicate share certificates, and converting physical shares to Demat. This person, a shareholder of Wipro, had obtained a physical share certificate at the time of purchase. Unfortunately, a fire disaster led to the loss of his share certificate, and he had not claimed dividends for an extended period. Our investigation revealed that his shares had been transferred to the IEPF (Investors Education and Protection Fund).

To initiate the IEPF claim for these shares and dividends, a duplicate share certificate was required as the original proof of ownership was lost. The only evidence available was a dividend check. Using this, we initiated the procedure of issuing a duplicate share certificate. We advised him to immediately file a complaint and obtain a copy of the FIR at the local police station.

Upon receiving the FIR copy, we submitted the necessary documents to request a duplicate share certificate. These documents included:

- A canceled check leaf

- Folio number

- Share certificate number

- PAN card

- Aadhaar card

- Email address

- Mobile number

Some clients who visited us in person for a duplicate share certificate were able to complete the process quickly and easily. However, a few clients had to leave due to professional commitments, causing delays in providing the required documentation, which unfortunately resulted in their shares being transferred to IEPF.

To avoid such delays and expedite the process, we recommend being present and responsive when we request documentation.

Process for Deceased Shareholders

When an individual purchases shares from a company, they become a shareholder. Historically, shares were bought using physical share certificates. If a shareholder dies, the nominee or legal successor must inform the company. They should also report any lost or forgotten share certificates by email or letter. If a nominee is named on the share certificate, they can request the transfer of shares and apply for a duplicate share certificate.

By adhering to these procedures and promptly providing the necessary documentation, shareholders and their heirs can ensure the share recovery and transfer of shares and dividends, safeguarding their investments.

Share Samadhan for the Recovery of Wipro Shares

Many of Share Samadhan's clients have successfully obtained duplicate share certificates, even when the original shareholder or investor had passed away.

Recently, one of our clients sought our help in recovering unclaimed dividends and shares, as well as obtaining a duplicate share certificate.

In this case, Mr. Aman Ahuja purchased 200 shares of Wipro Ltd. in 2004 in the form of physical share certificates. Unfortunately, in 2009, he misplaced the actual share certificate. Mr. Ahuja became bedridden due to illness in 2011 and subsequently passed away in 2014. Since dividends for the shares had not been claimed for seven consecutive years, the unclaimed shares  and dividends  were transferred to IEPF  in 2019.

Wipro Ltd. issued a 1:1 bonus in 2006, doubling the number of shares to 400. In 2009 and 2018, Wipro again distributed bonuses at a 1:1 ratio, further increasing the total shares to 1600. As of 2018, the entire market value of these shares was 33 lakh Indian rupees.

Mr. Ahuja's wife, Mrs. Smriti Ahuja, approached us to handle the situation and reclaim the shares and dividends from IEPF. Given that the primary ownership document was missing, we initiated the procedure for issuing a duplicate share certificate. To apply for this, we required several documents, including:

- The investor’s death certificate

- PAN cards of family members

- The successor’s succession certificate

- The successor’s attested signature from their bank

- Address proof

- Folio number

- Shareholder's address (as the nominee or legal heir)

- Share certificate number

- PAN card

- Aadhaar card

- Email address

- Mobile phone number

Mrs. Ahuja provided the necessary documentation, and we commenced the process of requesting a duplicate share certificate. Once we received the duplicate share certificate, we successfully recovered the unclaimed shares and dividends from IEPF. Mrs. Ahuja then claimed the unclaimed dividends and the shares were transferred to her name.

This case highlights the importance of keeping share certificates safe and ensuring timely claims of dividends to avoid the transfer of shares to IEPF. If you find yourself in a similar situation, Share Samadhan can provide expert assistance in recovering your shares and dividends.

Handling Situations When Both the Shareholder and Nominee Are Deceased

Shareholders often have the option to designate a nominee for their shares. Most investors add nominee information when purchasing shares in physical form, although some fail to do so. When a shareholder or investor passes away, it is relatively straightforward for the nominee to obtain a duplicate share certificate if the original is lost, missing, burned, or forgotten. However, the process becomes more complicated and time-consuming if the nominee's information was not recorded.

In cases where both the shareholder and nominee have passed away, the legal successor or family members can request a duplicate share certificate. At Share Samadhan, our professional team has a track record of successfully assisting clients in such situations.

Obtaining a Duplicate Share Certificate When Both the Shareholder and Nominee Are Deceased

Shares Transferred to IEPF

If dividends are not claimed for seven years or more, shares are transferred to the Investor Education and Protection Fund (IEPF). Obtaining a duplicate share certificate from IEPF under these circumstances can be a lengthy process, especially when both the shareholder and nominee are deceased and the original share certificate is missing.

Here is a case we resolved that may help you understand the regular procedure to obtain a duplicate share certificate from IEPF.

A client approached us as the legal heir of a deceased shareholder. His father owned 500 shares of Reliance Industries Ltd. since 2004, with his mother as the nominee. Unfortunately, both parents passed away, and the physical share certificate was lost. The only proof available was a dividend check in his father's name.

Using the information from the dividend check, we investigated and discovered that the company had issued a total of 2000 shares with bonuses, all transferred to IEPF. Our team worked diligently with IEPF to secure a duplicate share certificate. Once obtained, we proceeded to reclaim the unclaimed dividends and transfer ownership of the shares to our client. The necessary documents included dividend checks, KYC records, death certificates for both the shareholder and nominee, family members' no-objection certificates, legal heir certificates, and succession certificates.

Shares Still Held by the Company

If the shares have not been transferred to IEPF, the process is simpler but follows a similar procedure. We contact the company directly to obtain the duplicate share certificate. Once the duplicate certificate is received, we can transfer the shares and claim any unpaid dividends. Required documents include dividend checks, KYC records, death certificates for the shareholder and nominee, no-objection certificates from family members, legal heir certificates, and succession certificates.

Steps to Take

1. Collect Necessary Documents:

   - Dividend checks

   - KYC records

   - Death certificates of the shareholder and nominee

   - No-objection certificates from family members

   - Legal heir certificate

   - Succession certificate

 

2. Contact Share Samadhan:

   - Provide the collected documents.

   - We will initiate the process of obtaining a duplicate share certificate.

 

3. Follow Through:

   - Once the duplicate certificate is obtained, we will help you reclaim unpaid dividends and transfer the shares to the legal successor.

 

By following these steps and providing the required documentation promptly, you can ensure the recovery and transfer of shares and dividends, safeguarding the legacy and investments of your loved ones.

 

CONCLUSION

At Share Samadhan, 50% of the cases we handle involve unclaimed shares transferred to the  Investor Education and Protection Fund (IEPF) due to address changes. If you have lost your physical share certificate and have moved to a new address, we recommend updating your address with the relevant authorities. If your shares are still active with the issuing firm, you can directly contact them to update your address and request a duplicate share certificate. However, if your unclaimed shares and dividends have already been transferred to the IEPF, updating your address and obtaining a duplicate share certificate can take some time. Share Samadhan can assist you in receiving a duplicate share certificate from the IEPF. We have a proven track record of successfully updating our clients’ addresses and securing duplicate share certificates from the IEPF.

Imagine owning just 100 shares of a company and earning over ₹1 crore in dividends! It sounds unbelievable, but ITC Limited has made this possible for its long-term investors. If your father or grandfather had purchased 100 shares of ITC during its IPO, reclaiming those shares from the Investor Education and Protection Fund (IEPF) today could make you a multimillionaire. Intrigued? In this blog, we'll explore the historical performance of ITC's share prices and explain how to claim IEPF shares so that it can lead to significant financial gains for investors.

ITC Historical Timeline

- 1910: ITC was founded on August 24th as a Private Limited Company under the name Imperial Tobacco Co. of India Ltd.

- 1953: Acquired the manufacturing business of Tobacco Manufacturers (India) Ltd.

- 1954: Converted to a Public Limited Company on October 27th.

- 1970: Renamed from Imperial Tobacco Co. of India Ltd. to India Tobacco Co. Ltd. in May.

- 1972: Entered the hotel industry in October.

- 1973: Received government approval for setting up three processing plants.

- 1974: Changed name to ITC Ltd on April 1st.

- 1975: Acquired the net assets in India of the India Leaf Tobacco Development Co. Ltd.

- 1979: Rebranded the hotel chain from "Welcome Hotels" to "Welcomgroup".

- 1983: Incorporated Gujarat Hotels under a joint agreement with Gujarat Industrial Investment Corporation, establishing a 144-room hotel in Vadodara called Welcome Group Vadodara.

- 1986: Signed a joint venture agreement with MP Audyogik Vikas Nigam to establish four hotels over five years.

- 1987: Launched new cigarette brands - Wills Flake Premium Filter and Scissors Filter, and leased Nedovs Hotel, Srinagar.

- 1988: Introduced oilseeds under the "ADARSH" brand and cooking oil under the "SUNDROP" brand.

- 1990: Launched refined mustard oil under the brand "REAL GOLD".

- 1993: Successfully introduced Hero and Classic Milds brand cigarettes.

- 1995: Introduced Capstan Menthol Filter, Capstan Standard, and Bristo Standard, redesigned Gold Flake Kings and Berkley Filter, and tested Gold Flake Lights in Kingsize.

- 1996: Launched Classic Ultra Milds and Wills Natural Lights cigarette brands.

- 1997: ITC Classic Finance Ltd. entered an agreement with ICICI Ltd.

- 1998: ITC had approximately 105 subsidiaries across various operations.

- 2000: Established the Lifestyle Retailing Business Division and launched Wills Sport, a premium wear brand for men and women.

- 2003: Launched Spriha brand of natural incense sticks (Agarbathis) on February 21st and introduced 'Aashirvaad' salt on April 4th. Also launched a new brand of agarbattis.

- 2008: Introduced eco-friendly "Paperkraft Premium Business Paper".

- 2010: Entered the Rs. 1,700-crore fairness cream market and the cigar business in India.

- 2011: Chairman Mr. Y C Deveshwar received the Padma Bhushan. Launched Classmate Notebooks and John Players.

- 2012: Introduced Vivel, a skin-nourishing range of soaps.

- 2014: Replaced TCS as India's most admired company and entered the e-cigarette market. ITC Hotels initiated a significant foreign investment in Colombo.

- 2017: Contributed to the Swachh Bharat initiative.

- 2022: Reported a Gross Sales Value of ₹90,104 crores and Net Profit of ₹15,058 crores on March 31st, positioning ITC as one of India's most profitable FMCG companies.

Source: https://groww.in/blog/history-of-itc-group

ITC Share Price Graph from the Beginning:

Source: https://www.moneycontrol.com/india/stockpricequote/diversified/itc/ITC

Bonus History:

Source: https://www.moneycontrol.com/company-facts/itc/bonus/ITC

Dividend History:

Source: https://www.moneycontrol.com/company-facts/itc/dividends/ITC

About IEPF:

The Government of India established the Investor Education and Protection Fund (IEPF) to address the growing issue of investors forgetting their shareholdings in various companies. Launched to safeguard investors' interests and enhance awareness, the unclaimed dividends and lost shares get transferred to the IEPF. IEPF handles them on behalf of rightful shareholders. Often, dividends remain unclaimed for years simply because shareholders forget they own the shares. Several factors contribute to this oversight:

- No Nominee: Many investors neglect to appoint a nominee or heir to manage their shares after their death, leaving heirs unaware of the shares' existence.

- Small Investments: Minor investments are easily overlooked by investors.

- Property Disputes: Shares can become entangled in court proceedings over property disputes, rendering them ownerless until a verdict is reached.

Other reasons also contribute to investors forgetting about their shareholdings, leading to numerous companies holding unclaimed shares.

Prior to the IEPF, companies had to transfer unclaimed dividends and shares to government funds, which the government then used for public welfare and development projects. However, as the issue of forgotten shareholdings escalated, it became clear that this was resulting in significant financial losses for investors. In response, the Government launched the IEPF, providing a centralized solution where shareholders can claim their dividends and recover long-forgotten shares. This initiative prioritizes the interests of investors, ensuring the protection of their funds and increasing awareness.

The IEPF manages unclaimed dividends and lost shares for up to seven years, during which investors can reclaim their assets by applying to the fund's managing authority. The platform offers a streamlined process, allowing shareholders to claim dividends and shares from multiple companies in one place, eliminating the need to contact each company individually. This efficiency is why the IEPF is considered a comprehensive solution for investors.

Regulations Governing the IEPF

The operation of the Investor Education and Protection Fund (IEPF) is regulated by the Companies Act, 2013, along with the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016. When a company declares a dividend on its shares, shareholders have 30 days to claim it. If the dividend remains unclaimed after this period, the company is required to transfer the unclaimed dividend to a special account known as the ‘Unpaid Dividend Account’.

Subsequently, within 90 days, the company must publish a list of shareholders with unclaimed dividends on its website. Additionally, the company may use other communication methods to inform shareholders about their unclaimed dividends. Shareholders wishing to retrieve their unclaimed dividends from the ‘Unpaid Dividend Account’ must apply to the company's transfer agent. However, if a shareholder does not claim the dividend for seven years, the company will transfer the unclaimed dividend to the IEPF Account. The shares on which the dividend was declared are also transferred to the IEPF, as they are deemed forgotten. Therefore, if the dividends are unclaimed for seven years, both the dividends and the associated shares are transferred to the IEPF Account.

Provisions of the Investor Education and Protection Fund (IEPF):

Transfer of Dividend:

According to the Investor Education and Protection Fund Authority Rules, 2017 issued by the Ministry of Corporate Affairs (MCA), any money transferred to a company’s Unpaid Dividend Account that remains unpaid or unclaimed for seven years (7 years and 37 days from the date of dividend declaration) must be transferred by the company to the IEPF, along with any accrued interest. The MCA updated these rules with the Second Amendment Rules on 14th August 2019, which took effect on 20th September 2019.

Additionally, all shares for which dividends have not been paid or claimed for seven consecutive years or more must also be transferred by the company to the IEPF. Over the years, many forgotten investments have resulted in the transfer of unclaimed shares to the IEPF. For individuals, the primary concern is how to reclaim their shares from the IEPF.

Process for Reclaiming Lost Shares through IEPF Services:

If you have unclaimed dividends and shares transferred to the IEPF, you can file a claim to get a refund. Here’s how to do it:

Step 1: Application by Claimant to Authority

To initiate the refund process, the claimant needs to apply to the MCA using the e-form IEPF-5. The form requires the following details:

- Applicant and company information

- Details of shares and amount claimed

- Year-by-year details of deposits/securities

- Identity proof (Identity card, Aadhaar Number, Passport, OCI, or PIO Card No.)

- Bank account details linked to Aadhaar

 

Note: You can download the form from the IEPF Services website at http://www.iepf.gov.in/

Step 2: Sending Documents to the Company

After submitting the e-form IEPF-5 online, the investor must send all required documents, along with necessary attachments, to the designated Nodal Officer (for IEPF services) at the company’s registered office to start the verification process.

Step 3: Appointment of Nodal Officer and Company Compliance

Every company that has transferred shares to the IEPF must appoint a Nodal Officer to handle the claims verification process. This officer should be a Director, Company Secretary, or Chief Financial Officer of the company. The Nodal Officer will verify claims and coordinate with the IEPF Authority. Companies can appoint multiple Nodal Officers to manage various claims.

Step 4: Verification Details Sent by Company to Authority

The company’s Nodal Officer must send a verification report to the IEPF Authority within 30 days of receiving the claim form, using the format specified by the Authority, along with all documents submitted by the claimant.

Step 5: Authority Approval or Disapproval

The IEPF Authority will verify the documents and decide whether to approve or reject the claim. If approved, the Authority will issue an order to transfer the claimed amount to the claimant’s bank or Demat account. The Authority is required to process the application within 60 days of receiving the verification report from the Nodal Officer.

Why Should You Opt for Legal Help

The process of unclaimed dividends and lost shares recovery is complex and requires meticulous attention to detail. A legal expert can handle all the formalities and paperwork necessary for filing a refund application, leveraging their expertise to ensure everything is completed accurately. Mistakes in the application can lead to immediate rejection by the IEPF authority, necessitating the entire process to be repeated. By hiring a legal professional, you can avoid this tedious task and ensure your application proceeds smoothly. A lawyer will manage everything from contacting the nodal officer to gathering the required information for the application.

Legal assistance is especially crucial if your shares are entangled in a family dispute. Often, shareholders pass away without naming a nominee or including shares in their will, leading to multiple family members claiming rights to the deceased’s property, such as ITC shares. Without legal expertise, you risk losing out on valuable assets as others may exploit the situation. A skilled lawyer can understand the legal complexities, protect you from potential pitfalls, and secure the best possible outcome.

In addition, Share Samadhan, India's largest unclaimed investment retrieval advisory, can provide invaluable support. Their extensive experience in managing unclaimed investments can simplify the retrieval process and maximize your chances of successfully reclaiming your assets.