Any person or shareholder whose unpaid or unclaimed amount has been transferred by the company from the unpaid dividend account to the IEPF can claim their refunds from the IEPF Authority. They can claim the refund as prescribed under Section 125(3)(a) of the Act and Rule 7(1) of the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016.
The company transfers the unpaid or unclaimed amounts of the shareholders remaining in the unpaid dividend account for seven years into the IEPF. However, the shareholders can claim a refund of their amounts transferred to the IEPF by filing the Form IEPF-5 with the IEPF Authority. They must submit the required documents along with Form IEPF-5 to receive refunds.
We are liasoning between the client & IEPF Authority to enable the investors to unlock their locked investment.
Unclaimed dividend is the declared dividend by a company which is not encashed or claimed by the shareholders. The Companies Act of 2013 mandates that dividends not paid or claimed in 30 days are transferred to a separate bank account. An investor can claim his dividends from this account anytime in the next 7 years. After that, it goes to the Investor Education and Protection Fund (IEPF) which is managed by the Ministry of Corporate Affairs.
Although the government has ensured unclaimed dividends, deposits, debentures, bonus, split shares etc to be in safe hands so that the investors can claim it even after a certain period, the number of the affected investors are no less.
If your funds have been lying with IEPF, you need to track and quickly claim your dues. Crores of unclaimed money in the form of old equity shares, debentures, dividends, and more have been piling up with the IEPF. We provide a whole range of services to investors to recover their unclaimed dividends, split shares etc.
Why do unclaimed shares or dividends arise?
The Dividends are declared by the company to rewards its shareholders on a yearly basis depending upon the performance of the company. These days’ dividends are directly credited into the bank account of shareholders as every broker do E-KYC which enables them to maintain a record of a correct and active bank account.
However, in old days when shares were held in physical form and bank account numbers are not properly maintained with the company then the declared interest/redemption amount distributed by the Company to its share/debenture-holders remains unclaimed and gets accumulated with the Company. Most of the time investors were even not aware of such dividends being declared and the dividend money were kept with companies until someone claims it. There is a chance of misuse of the dividend money or not keeping record of such unclaimed dividend by company which may resulted into loss to an investor. Major possible reasons are listed below.
You may have lost track of the amounts invested in the company.
A financial institution or company has failed to contact you or locate you for the payment of your dividend. Bank and contact details change frequently and often companies fail to stay updated about the same.
Often legal heirs and nominees fail to claim shares and dividends as they are unaware of these assets.
Torn, lost, dismantled, or forgotten shares.
Investors are likely to face problems because of following reasons in Unclaimed Dividends:
Unclaimed Dividend largely exists due to incorrect or outdated details of a shareholder in company’s records. Mismatches of bank and personal details like name, date of birth, age, address, father’s name, and husband’s name can lead to unclaimed dividends. Non-intimation of change of address or other details to the respective company results in mismatch of investor’s database with various authorities.
Non-execution of transfer:
Shares purchased by an investor remain in the name of the seller due to non-execution of transfer in the name of the buyer. This happens when an investor holds physical shares.
Non-execution of transmission:
It happens when a legal heir or successor fails to ‘transmit’ shares in his name after the death of an investor in whose name shares or debentrues are actually held in company’s records, leading to unclaimed corporate benefits including dividends etc.
Our focused and dedicated research tools helps us in locating and tracing all unclaimed investments like shares & dividends for investors who had invested money in the Indian Market. Our team has the necessary data and the know-how to analyse all the sources to figure out what unclaimed investments belong to a certain investor or their ancestors.