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Recovery of Unclaimed Dividends – Explained in Simple Terms
Recovery of Unclaimed Dividends means claiming the dividend amount that a shareholder never received or did not claim earlier. Sometimes, due to incorrect details or inactive accounts, the dividend does not reach the shareholder. This money is not lost; it just needs to be claimed through the right process.
What Are Unclaimed Dividends?
Unclaimed dividends are those dividend amounts that companies declare, but shareholders fail to collect within the valid period. This happens due to several reasons such as:
- Change of address without informing the company
- Expired dividend cheque
- Bank account becoming inactive
- Death of the shareholder
- Shares transferred to the Investor Education and Protection Fund (IEPF)
- In all these situations, the dividend remains unpaid and is called “unclaimed.”
Why Do Unclaimed Dividends Occur?
Let’s look at the common reasons why dividends go unclaimed:
- Shareholder did not update bank or address details
- The original shareholder passed away, and legal heirs did not claim the dividend
- The dividend cheque expired or was not delivered
- The investor was unaware of the declared dividend
- Shares were in physical form and no action was taken
- Shares were transferred to IEPF after 7 years of inaction
For more information about How to Claim Unclaimed Dividends or Transfer of Shares contact us.
How to Claim Unpaid or Unclaimed Dividends?
Here is a step-by-step guide for claiming unclaimed dividends:
Collect Information
Company name, folio number, dividend amount
Dividend warrant (if available)
Reach Out to the Company
Contact the company’s Registrar and Transfer Agent (RTA) or investor service department
Document Verification
Submit PAN, Aadhaar, share certificate (if physical), and KYC documents
Fill out the Claim Form
Most companies have a standard claim form on their website
Attach Required Documents
Identity proof, address proof, bank passbook, or cancelled cheque
Submit the Application
Send it to the company or registrar as per guidelines
Follow-Up
Track the status by staying in touch with the registrar
Receive Your Payment
Once verified, the dividend is transferred to your registered bank account
How to Recover Dividends from IEPF?
If 7 years have passed and the dividend is now with IEPF:
- You must file IEPF Form 5 online on the MCA (Ministry of Corporate Affairs) portal
- Attach supporting documents like an indemnity bond, advance stamped receipt, and claimant’s ID proof
- Submit the documents to the company and IEPF authority
After verification, the unclaimed dividends recovery service will transfer your funds
Tips to Avoid Missing Future Dividends
Keep your contact and bank details updated
Dematerialize your physical shares for easier tracking
Register nominee details in case of unfortunate events
Monitor company announcements related to dividends
Why Choose Professional Help?
Sometimes, the process of recovery of unclaimed shares and dividends can be lengthy and confusing, especially in cases involving deceased shareholders or old physical shares. You can always get help from experts or service providers who offer unclaimed dividends recovery services to make the process smoother and faster.
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Frequently Asked Questions
You can claim from the company within 7 years. After that, you need to claim from IEPF.
Yes, the legal heirs or nominees can file for recovery of unclaimed dividends by submitting legal documents.
The dividend is transferred to IEPF. You will then have to follow the IEPF claim procedure.
No fixed deadline, but sooner is better. Delay may require more documents and time.