He visited the iepf website and found his unclaimed dividend information in it. A BIG RELIEF to the old man and his lady.
What is unpaid/unclaimed dividend?
Unclaimed dividend are those dividends declared and redemption/interest amount paid by the company to it’s shareholders but remains unclaimed and gets accumulated with the company.
The Ministry of Corporate Affairs (MCA) looked into the matter and addressed the issue by introducing the Section 125 of the Companies Act, 2013 which states that the dividends which remains unclaimed/unpaid for seven consecutive years or more shall be transferred to Investor Education and Protection Fund (IEPF), solely administrated by Central Government.
Government ensured that unclaimed dividends are in safe hands (The Companies Act of 2013) mandates that the dividends which remain unpaid in 30 days during company’s payment period to be deposited in a separate bank. Shareholder can anytime claim his dividends within seven years from this account. When this dividend remains unclaimed beyond it’s validity period (7 years) , they get transferred to Investor Education and Protection Fund (IEPF).
Why dividends remain unclaimed?
- Forgotten Investments/shares
- Outdated records
- Wear and tear
- Address change
- Certificate misplace
Know your unclaimed dividends
The Ministry of Corporate Affairs (MCA) has notified to Investor Education and Protection Fund (IEPF) Authority, effective from September 2016, whereby companies have to identify and upload information regarding unclaimed dividend, redemption amount due to be transferred to IEPF on their company’s and MCA’s website. These information are provided in order to benefit the shareholders who have forgotten their investments.
Shareholders can claim their unclaimed amount due as per the procedure defined in rule number 7 of the IEPF rules, by applying an application to IEPF authority as well as to the company along with the mentioned documents. Once unclaimed Dividend is transferred to IEPF, no claim shall lie in respect thereof with the IEPF or company.
IEPFclaims are experts in helping their clients getting back their somehow-lost investment. They have recovered many such unclaimed dividends by providing legal advices with their customized services.
Also Read- Process to recover shares from IEPF