Shares Moved to IEPF
It is estimated about 37,300 crore rupees stuck as unclaimed in shares, and that Shares Moved to IEPF.
We have been always encouraged long-term investments as a great investment practice, However some investors may have forgotten about shares they purchased a long time ago.
These investments that investors are unaware of are called abandoned shares. They can add value to the investor over time.
Most of these investors are senior citizens who initially track their investments but tend to forget the information or misplace the documents as the years go by.
If unclaimed for seven years, these investments are transferred to the Investor Education and Protection Fund (IEPF) under SEBI custody.
We Share claimers and our experts can help you locate these investments through research analysis and database search.
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Benefits of Shares Moved to IEPF
The Shares Moved to IEPF offers several benefits:
Investor Protection: Transfer of Shares safeguard investors' rights by preventing loss of value due to unclaimed dividends or shares. The funds remain available for rightful claimants even after a prolonged period.
Financial Inclusion: The IEPF promotes financial literacy and awareness among shareholders, ensuring they are informed about their rights and entitlements.
Corporate Governance: It encourages transparent corporate practices as companies are accountable for unclaimed dividends and shares. This fosters better corporate governance.
Economic Growth: Utilizing unclaimed funds for economic and infrastructure development contributes to the nation's growth.
Investor Welfare: The IEPF utilizes unclaimed dividends for investor education and protection, creating a supportive environment for shareholders.
Need of Shares Transferred to IEPF
Shares are transferred to the Investor Education and Protection Fund (IEPF) when dividends remain unclaimed for several years. This safeguards shareholders' interests by preventing loss of value due to Unclaimed Shares IEPF.
The IEPF ensures that Unclaimed Dividends and shares are utilized for the welfare of investors and the growth of the economy, hence Shares Transferred to IEPF. It also encourages responsible ownership and helps maintain transparent corporate practices. The process promotes financial literacy and investor protection while contributing to the overall health of the financial market.
How to Claim Shares From IEPF?
Claiming shares from the Investor Education and Protection Fund (IEPF) involves a series of steps. The IEPF was established by the Indian government to protect the interests of investors and unclaimed dividends. If you have unclaimed shares that have been transferred to the IEPF, here's How to Claim Shares From IEPF:
Transfer of Unclaimed Shares to IEPF
A corporation is required to transfer the Unclaimed Shares IEPF for more than seven years, together with any accumulated interest. The corporation is required to give the IEPF Authority the specifics of such a transfer.
By submitting an application to the IEPF Authority, which keeps track of all accounts, a shareholder may request the return of unclaimed Shares Transferred to IEPF by the corporation.
Who Can Apply to IEPF Authority for Recovery of Shares?
By submitting an application to the IEPF Authority, any shareholder whose Unpaid Dividends / shares have been forwarded to the IEPF may request a refund of those shares. Nevertheless, a claimant is limited to one consolidated claim against a company every fiscal year. The data from the multiple Folios from the same company should be included in the aggregated claim.
Before submitting the IEPF Unclaimed Shares to the authorities where the claimant is the registered shareholder's lawful heir, nominee, or successor, he or she should first make sure that the corporation has finished the share transmission process and has issued an entitlement notice.
Process of Recovery of Share From IEPF
Step 1: Claimant files with authority
A claimant should submit the Form IEPF-5 on the MCA site if they want Shares Moved to IEPF in their name. On the form, the claimant must fill out the following details:
Step 2: Providing the Company with the Claim
After filing the Form IEPF-5, the claimant should send a copy of the form along with the following supporting documentation to the company's IEPF Nodal Officer/Registrar in an envelope marked “Claim for refund from IEPF Authority”:
Step 3: The Company must submit its claim to the IEPF Authority.
After receiving a claim form from a claimant, the employer has 15 days to compile a verification report and send it to the IEPF Authorities with the claimant's supporting paperwork.
Step 4: The claimant receives a refund from the IEPF Authority
Within 60 days of receiving the verification report from the pertinent business that has approved the claimant's IEPF 5 Filling, the IEPF Authority must make a decision on the claimant's reimbursement request.
When the claimant is entitled to the shares with the competent authority's approval, the IEPF Authority will issue a refund sanction order. After confirming the claimant's eligibility, the IEPF Authority and the authority's Drawing and Disbursing Officer will send a bill to the Pay and Accounts Officer for payment. The claimant's Demat account will be credited with the shares or the full amount of their entitlement.
FAQs
1. When are unpaid dividends or shares transferred to the IEPF?
Ans. In case the dividend declared by the company remains unclaimed or unpaid for about seven years, then the company is required Shares Moved to IEPF. Moreover, all the shares in respect of which dividend hasn’t been claimed or paid for the 7 consecutive years or more are required to be transferred by the company in the name of IEPF.
2. Who is eligible to receive shares or unclaimed dividends transferred to the IEPF Authority?
Ans. Any person whose IEPF Unclaimed Shares or other amount such as matured deposits, matured debentures, application money due for refund, or interest thereon, sale proceeds of fractional shares, redemption proceeds of preference shares, etc. have been transferred to IEPF by the company may claim the shares and/or apply for refund of amounts transferred from the IEPF Authority by submitting an online application in Web-Form IEPF-5 available on the IEPF website.
Any successor, legal heir, or representative of the deceased person are also eligible to claim Shares Transferred to IEPF.
3. What is the straightforward procedure for obtaining unclaimed dividends?
Ans. To obtain the Unclaimed Dividends - Visit shareclaimers.com> complete the E-Form IEPF-5> Then upload the required document> pay> and finally receive your claim.
4. What are some common pitfalls in securities claims?
Ans. Damaged physical documents, improper execution, and the use of illegal methods are the most common barriers to claiming securities. To avoid these pitfalls, it is advised to Convert Physical Shares to Demat.
5. How to Claim IEPF Shares?
Ans. Here is the complete guide on How to Claim IEPF Shares. To claim the Unclaimed Shares IEPF, submit a duly filled claim form to the company's registrar along with necessary documents like identity proof, address proof, and share-related details. Ensure compliance with the prescribed guidelines and deadlines outlined by the company and the IEPF authority. Timely and accurate submission facilitates the efficient processing of claims, enabling rightful shareholders to reclaim their shares held in the IEPF account due to unclaimed dividends or matured deposits.
6. How long does it take to recover IEPF shares?
Ans. After claiming shares, it takes about 60 days to receive them from the IEPF.