Recover ITC shares from IEPF
IEPF (Investors Education and Protection Fund) was solely established for the purpose of transferring the funds of the investors which have not been used for the last 7 years whether it is unpaid dividends, cash deposits, interest earned on money are transferred to this fund. Any investor who wants share transfer in their case can approach the IEPF for the same. This organization has been set up under the counsel of SEBI (Securities and Exchange Board of India) and MCA (Ministry of Corporate Affairs India)
Usually, people invest small amounts of money in different avenues to have a diverse portfolio, so that they can have different sources of income and can still earn money when they stop working. However, after some time people tend to forget where they have invested, not realizing the huge benefits they are earning financially in the form of huge returns. IEPF which was initially formed to educate investors about their rights switched to a board fundamentally for receiving unutilized funds. However, this lead to a lot of bafflement among investors about the share transfer process which has been made simpler with time for better understanding.
The main objectives of IEPF are:
- Teaching investors about their rights, advantages of investing in general and also in different kinds of companies.
- Enlightening them with proper knowledge about the trends will help them to make better decisions.
- Help to recover unclaimed shares from IEPF.
- Providing information about the malpractices and unethical practices that take place in the market.
- Motivating a maximum number of people to invest in the market, which in turn would lead to an increase in the country’s economy.
The Ministry of Corporate Affairs of India (MCA) took an innovative move in 2016, where they helped investors to recover shares from IEPF making the process convenient for all. Earlier once the money was transferred to the account, it could not be refunded to the investor. A lot of people would lose their money due to bad investment decisions, lost shares, no knowledge about how to channelize their funds, etc. The recovery of the dividends can now be done by filling the IEPF claim application form
Having discussed the functioning of the IEPF let’s now discuss ITC as a brand whose shares we want to recover. ITC is one of the biggest FMCG companies in India, having businesses in multiple sectors. It is one of the few companies which has grown immensely in the last decade. It is counted under India’s top 10 most valuable trademarks and is in no mood to slow down in terms of its growth opportunities. Having started from selling just tobacco products, the company today has entered almost all areas making it a diverse business firm. Being able to rise constantly since the last century, it is one of the limited companies to have survived in the market for so long. The market value of the company keeps growing with the tremendous amount of progress the brand has made with its revenue and business. The company has also managed to stay on its feet in hard times. Taking the example of the pandemic that took over us two years ago, the company has not slowed down its sales because of its expansion in various sectors. Investors of this brand have utmost faith in the company because of its regular moneymaking yields
To simplify it, if in 1980 you had 5 shares in the company, for every 5 shares you would be getting 1 share of the company. So now let’s take an example that I purchased 500 shares of the company at Rs.10, in 1994 for Rs 5000 given the bonus ratio of the company the number of shares I would have is 1000 shares because the bonus ratio is 1:1. The record date means the last date which is fixed by every company for its shares offering to the public, after which they will not accept any investments. Looking at the bonus history of the company, we can clearly make out that the company has regularly given bonus shares to its investors, which is a good deal for their investors to grow.
In 2005, however, the company decided to split their shares from the face value of 10 to 1 which means the shares were split into 10 stocks of the value of Rupee 1 per share. So as a result of this, the number of shares that I would be having now is 10,000. Similarly, the company again issued a bonus in 2005 for a 1:2 ratio taking the total number of shares to 15,000. The company again issued a bonus in 2010 in 1:1 ratio making the shares count to 30,000 and finally in 2016, the bonus ratio of 2:1 making the share count to 45000 shares.
Now as per the current value of ITC, the amount that has been made in total is 45000*244.70= 1,10,11,500. So you can clearly make out that by investing just Rs.5000 the amount of money that I have made till now is more than a crore. That’s not it, the company also gives dividends to its shareholders from time to time. You can check the dividend history of the company by clicking on the link below. The process to
To simplify it, if in 1980 you had 5 shares in the company, for every 5 shares you would be getting 1 share of the company. So now let’s take an example that I purchased 500 shares of the company at Rs.10, in 1994 for Rs 5000 given the bonus ratio of the company the number of shares I would have is 1000 shares because the bonus ratio is 1:1. The record date means the last date which is fixed by every company for its shares offering to the public, after which they will not accept any investments. Looking at the bonus history of the company, we can clearly make out that the company has regularly given bonus shares to its investors, which is a good deal for their investors to grow.
In 2005, however, the company decided to split their shares from the face value of 10 to 1 which means the shares were split into 10 stocks of the value of Rs 1 per share. So as a result of this, the number of shares that I would be having now is 10,000. Similarly, the company again issued a bonus in 2005 for a 1:2 ratio taking the total number of shares to 15,000. The company again issued a bonus in 2010 in 1:1 ratio making the shares count to 30,000 and finally in 2016, the bonus ratio of 2:1 making the share count to 45000 shares.
Now as per the current value of ITC, the amount that has been made in total is 45000*244.70= 1,10,11,500. So you can clearly make out that by investing just Rs.5000 the amount of money that I have made till now is more than a crore. That’s not it, the company also gives dividends to its shareholders from time to time. You can check the dividend history of the company by clicking on the link below. The process to recover dividend from IEPF is the same as shares. This example clearly shows that share transfer in a share like ITC is worth the effort given the handsome returns it provides.
Taking forward the case where we discussed the fruitful returns we can get from IEPF claim, let us now discuss the technique in which investors can recover bonus shares from IEPF:
• By logging in to the website of IEPF, the investor needs to fill the application form to claim the same.
• Once the form has been filled, the printout of the form needs to be sent to the proprietor, along with the necessary papers to the Nodal office who will do the verification for the next step.
• Once the authentication has been completed by the officer, he will send the verification report to the IEPF authority to inspect the same.
• The IEPF authority, after looking into the report, takes the final decision of stipulation of share transfer to the investor.
• In case the investor is deceased, a succession certificate is required to recover shares from IEPF. A succession certificate is a paper that gives permission to the person owning it, to collect the shares on behalf of the deceased person. However before this is issued, Legal heir certificate needs to be issued to prove the bond between the deceased and the individual. The individual can apply for this certificate with the support of his advocate after obtaining the death certificate.
• Once the certificate has been issued to the individual, share transmission can be done.
• In case of joint shareholders, if the shareholder is deceased, shares can be recovered by submitting an application form to the Registrar/Transfer Agent.
Lost shares is a common problem among investors as earlier investors usually had shares in physical form. They would get misplaced which made it difficult to recover unclaimed shares. However in today’s times stock certificates are not needed, as the entire process has gone digital making it smooth for everybody.
Now, let us talk a little about dmat accounts. Dmat accounts are extremely important for any investor as they cannot purchase shares without having one. Dmat accounts are like bank accounts where share transfer from dmat can be done from one account to another as a substitute for cash.
We are aware of the benefits that an investor can get by share recovery, but the entire process of the recovery of unclaimed shares can be challenging as it requires a lot of detailing and correct information to be able to proceed further. It is always recommended to hire a professional who is technically trained to recover shares from IEPF. This will help in saving time since the person can get the work done quickly. In case the shares belong to an older family member, they can also help to get the proprietor’s attestation. You can directly stay in touch with the professional to know the status of your application and wait till the process gets over.
If you need any assistance for recovering unclaimed ITC Limited shares from IEPF Authority then contact us today.
