How to Recover Unclaimed Dividend Transferred to IEPF
You may have experienced instances as an investor in the Indian stock market when you were paid dividends but did not collect them for a variety of reasons. These unclaimed dividends can build up over time, and reclaiming them in the future may be difficult. Unclaimed dividend refers to the dividend that a company has declared and paid to its shareholders but remains unclaimed for a specific period, usually seven years. This may happen when the shareholder has changed their address without informing the company, or the dividend payment has been lost or misplaced. Profits in the form of dividends are distributed by companies to their shareholders. However, shareholders frequently neglect to collect their dividends for a variety of reasons, such as an inaccurate address, misplaced dividend warrants, or simple forgetfulness. To protect investor interests and guarantee that unclaimed dividends are used wisely in such circumstances, the government established the Investor Education and Protection Fund (IEPF).
As per the provisions of the Companies Act, 2013, unclaimed dividends and other securities that remain unclaimed for a period of seven years must be transferred to the Investor Education and Protection Fund (IEPF) established by the government of India.
How to Claim Unclaimed Dividends
Step 1: Identification of Unclaimed Dividend
Identification of unclaimed dividends is the initial stage before processing for retrieval of dividends and shares IEPF. After seven years go by with no claims, companies transfer the unclaimed dividends to the IEPF. The Ministry of Corporate Affairs (MCA) website has a list of unclaimed dividends that shareholders may access to see if they are due any unclaimed dividends.
Step 2: Sign up on the MCA Portal
The following step is to visit the website (www.mca.gov.in) and register on the MCA portal. The IEPF e-filing platform requires the shareholders to set up a login ID and password in order to access it. By selecting the ‘Register’ option on the homepage, the login ID and password may be established.
Step 3: Verification of Account
After the registration procedure is finished, the shareholders must confirm their accounts. By clicking the verification link supplied to the registered email ID, you may complete the verification. The shareholders can use the IEPF e-filing site after the verification process is complete.
Step 4: Completing the Form
The Form IEPF-5 must then be completed and submitted through the IEPF e-filing system. The form asks for information such as the shareholder’s name, the amount of the unclaimed dividend, and the cause of the unpaid dividend like death of original shareholder, change in address or any other reason. For the transfer procedure to go smoothly and without hiccups, the shareholders must fill out the form completely and precisely.
Step 5: Detail verification
The shareholders must check the information supplied in the form after it has been filled out. The shareholders must carefully review the contents to make sure that all the information is accurate. The shareholders can submit the form when the information has been confirmed.
Step 6: Fee Payment
The shareholders is not required to pay any fees for filling online IEPF 5 form, however the stamp duty on indemnity bond has to be paid.
Step 7: Form Submission
The form must be submitted as the final step. The shareholders can submit the form by clicking the “Submit” button. A notice verifying the form’s successful submission will appear on the screen when it has been submitted.
It is important to note that the process of transferring unclaimed dividends to the IEPF should be done within 30 days from the end of the financial year in which the dividends become due for transfer to the IEPF.
Final Words
Unclaimed Shares and Dividends can be recovered from IEPF online. Shareholders can retrieve their unclaimed dividends from IEPF by following the instructions indicated above.
It is significant to highlight that prompt transfer of unclaimed dividends to IEPF aids in both the expansion of the capital market as a whole and the protection of investors’ interests. It is thus recommended that shareholders examine to see whether they have any unclaimed dividends and deposit transferred to IEPF and recover the same as soon as possible.
Recover your hard earned wealth in form of unclaimed Shares and Dividends with the assistance and right guidance of Legal professionals of Shares Recover.
