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A Stepwise Guide to Getting Unclaimed Dividends from IEPF Authority Recovering Unclaimed
Dividends from IEPF: A Comprehensive Guide
In the ever-evolving landscape of the stock market, it's not uncommon for older shares to slip through the cracks. Thankfully, the Ministry of Corporate Affairs (MCA) has introduced a solution: the Investor Education and Protection Fund (IEPF). This fund provides a safe haven for unclaimed money Through Section 124 of the Companies Act, 2013, and the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer, and Refund) Rules, 2016, shareholders can now reclaim their forgotten dividends. This guide will walk you through the process of reclaiming your old shares from this authority
Understanding Unclaimed Dividends
Unclaimed dividends are the portion of a company's profits distributed as dividends to shareholders. However, these dividends remain unpaid due to shareholders not claiming them within a specified time limit. After a certain period, usually a maximum of 7 years, these unclaimed dividends are transferred to the Investor Education and Protection Fund (IEPF) as per legal regulations. This ensures that rightful shareholders can still access their dividends, relieving them of the burden of lost funds.
Exploring IEPF
Before delving into share transmission and other financial matters, it's crucial to understand the Investor Education and Protection Fund (IEPF) Authority. Established on September 7, 2016, under Section 125 of the Companies Act, 2013, this authority serves as a guardian of unclaimed investments. It orchestrates the refund process for unclaimed dividends, matured debentures, and ripe deposits, ensuring these assets find their way back to rightful investors. Beyond fiscal harmony, the IEPF also promotes financial literacy, raising awareness among investors and aiding them in recovering their unclaimed dividends.
Claiming Unclaimed Shares from IEPF: A Step-by-Step Guide
Step 1: Filing to the Authority To initiate the refund or share recovery process, submit Form IEPF-5 on the MCA portal. Provide details including company information, share details, dividend amount, Aadhaar number (for Indian citizens) or passport/OCI/PIO
card number (for NRIs or foreigners), Aadhar-linked bank account details, and demat account number.
Step 2: Claim Submission to Authority As a claimant, send the filled IEPF-5 form along with necessary documents to the company's IEPF Nodal Officer/Registrar. Required documents include the form printout, acknowledgment copy with SRN number, indemnity bond on non-judicial stamp paper, stamped receipt, share certificates or transaction statement snapshot, Aadhaar card, entitlement proofs, and relevant identity documents.
Step 3: Claim Submission to IEPF Authority
After completing the above steps, the company should provide a verification code within 15 days of claim receipt. This code should be submitted to the IEPF Authority along with the claimant's documentation.
Step 4: Refund from IEPF Authority Upon approval by the verifying company, the IEPF Authority expedites the process, usually within 2 months. Once entitlement is confirmed, the claimant's dividends are credited to their demat account.
In Conclusion
Reclaiming unclaimed dividends from the IEPF Authority is achievable through a systematic approach. For a smoother recovery journey, consider engaging with Share Samadhan. Our experts facilitate a hassle-free process, ensuring your funds are reclaimed without any complications. With their expertise at your disposal, your claim needs are well taken care of.
Meta title- Recovering unclaimed dividend from IEPF
Meta des- Getting back your unclaimed dividend from the IEPF authority is not a big deal when you go stepwise. Know the steps you need to follow to get your money back.