Under Section 124 of the Companies Act, 2013, and the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer, and Refund) Rules, 2016, shareholders of the Company may recover their unclaimed or underpaid dividends from the IEPF Authority.
Can we claim shares from IEPF?
Any claimant of shares transferred to IEPF is allowed to claim the transfer of shares from Investor Education and Protection Fund in line with such procedure and on submission of such papers as specified below, yes
How do I claim shares?
Hence, the procedure and practical features of the same from the point of view of shareholders and the company were developed in detail to claim the shares and dividend from the IEPF authority.
As you may know, the Company pays dividends either electronically to the shareholders’ selected bank account or by mail to their registered address.
An unclaimed dividend is obliged to be deposited to the Investor Education and Protection Fund (IEPF) created by the Central Government in accordance with Section 124(5) of the Companies Act, 2013. Unpaid or unclaimed dividends have been regularly uploaded by the company to its own website and to the website of the Ministry of Corporate Affairs before being transferred to the Indian Employees’ Provident Fund (IEPF).
The seven-year period stipulated under Section 124(5) of the Companies Act, 2013, which runs from September 7, 2016, to October 31, 2017, is considered to have been completed or to be completed on the due date for transferring such shares to an IEPF Account pursuant to Section 124(6) read with Rule 6 of the Investor Protection and Education Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016, as amended from time to time.
This means that any transfer of shares from the company to IEPF on or after 31.10.2017 must comply with this rule.
In order to collect the aforementioned shares and dividends from the Investor Education and Protection Fund Authority, the concerned shareholder or claimant must undertake the following steps:
The IEPF Authority will only distribute shares to claimants in the Demat Account of the claimant, hence shareholders must open a Demat Account with NSDL or CDSL. In the event that it has already been opened, please disregard this message.
Make sure you read all the instructions provided on this website/instruction package and the e-form before completing it. HELP KIT (Click on the link to access it for your reference and simple perusing)
To upload a completed form, simply click on the “upload” button on the website, enter your information, and then follow the on-screen instructions.
Finally, an acknowledgement will be generated identifying your SRN after successfully uploading your form on the MCA Portal. Please keep track of the form’s SRN number.
Nodal Officer (IEPF) of Company’s registered office (marked “claim for refund from IEPF Authority”) must receive the attachments stipulated below from the applicant to initiate the verification process for claim.
c. Original Indemnity Bond with claimant signature (as per Annexure II-Refer page 9 of instruction kit format) should be signed:
- It must be on non-judicial stamp paper of the value prescribed by law if the claim is greater than Rs.10,000. A claimant and witness must both sign their names in order to be eligible to receive compensation. or
- Refund of shares on a non-judicial Stamp Paper of the value prescribed under Stamp Act.
As a last resort, d. An Advance Stamped Receipt signed by both the claimant and two witnesses (original). For more information, see page 8 of the instruction kit’s Annexure I.
The certificate of share/interest warrant application number, for example) serves as proof of eligibility.
Shares held in demat form should have a transaction statement showing the debit/transfer of IEPF shares on it.
the claimant is entitled to such a number of shares and a dividend, as stated in a letter from the RTA
Additionally, the heir/claimant of the deceased shareholder must continue the procedure of transferring shares by delivering the following documents:
How do I claim dividends after 7 years?
When the RTA receives this, it will check the information and, if necessary, credit or issue a DD for any unpaid dividends from the relevant bankers’ unpaid dividend accounts.
Section 124(5) of the Companies Act 2013 states that any dividends that have not been paid or claimed for a period of seven years would be transferred to the IEPF by the company.
How do I check my share dividends?
Console on Kite web and Kite app lets you monitor the dividends of your stock holdings.
To begin, open the Console. 2. The Portfolio section of the site is where you’ll find Holdings As soon as you’ve chosen your stock, click on options. Check Your Dividends.
To access your profile, click on your name at the bottom right of the page. Secondly, on the Console Tab, select the portfolio option. The stock may be found at the bottom of the page by clicking on it. Consider the dividends.
When you download the Tax P&L statement, you’ll also find a section listing all of the equity dividends you’ve received over the course of a certain time period.
Even if you haven’t received the dividend, dividend information can help you keep tabs on your net profit and loss (P&L).
How do I find out how many shares I own?
On a company’s balance sheet, you may see the total number of shares, as well as the company’s assets and liabilities. This section includes information on the total number of common shares authorized, issued, and outstanding, as well as the total number of preferred shares. Notes to the financial statements may be included by companies with multiple share classes and voting rights. These statements can be found in the company’s investor relations section.
How do I find out if old shares are still valid?
“I found an old share certificate while going through old files of paper,” he says. They were worth less than a tenner to me at the time, so I put them in a file with our other official documents as we planned our emigration to Australia at the time.” I found out from Guardian Money that Abbey National was acquired by Santander in 2004, thus I’m wondering if my Abbey shares are still legitimate and worth anything, and if so, how can I sell them. Thanks. Should I throw them away?”
We asked Santander about Cook’s inquiry, which the bank said it hasn’t heard in over a decade since it acquired Abbey.
There is a simple answer to this: Abbey National plc share certificates are no longer valid because Santander acquired Abbey in November 2004 and the shares of Abbey were cancelled and ceased trading on the London Stock Exchange. Fortunately for Cook, he’s still expected to receive around £460.
If they are worth anything, “that would be a wonderful surprise,” he says. “It would be like finding a £50 note in the inside pocket of a blazer that you haven’t worn in a long time.”
A single Santander share (trading on the Madrid Stock Exchange) was given to Abbey shareholders for each ordinary Abbey stock they owned when Santander acquired Abbey.
Santander, like virtually every publicly traded company, does not issue certificates any longer. Instead, the shares are held electronically.
“All shareholders at the time of completion of the transaction automatically received new Santander shares, so there are no unclaimed entitlements, only holdings where contact may have been lost with a shareholder, due to them not keeping their registered details up to date,” says a spokesperson for Abbey Bank.
In Cook’s instance, this is very likely what happened. As long as Santander can prove that the shares have not been sold in the past, the nominee service will continue to hold the shares and any uncashed Santander dividends accrued during that period.
As of this writing, the value of a single share in the company is $460, a spokeswoman tells CNNMoney.
So, how do you redeem your points? As a first step, contact Santander Sharedealing on 0800 169 2001 or if they are in the Santander Nominee Service, they can be sold by mail, phone, or online using Shareview Dealing. It’s also possible to sell them through your local high-street bank or stockbroker. When looking through financial documents belonging to older relatives, it is not uncommon to come across old UK share certificates.
You’ll pay a fee to use a stockbroker, but “if there is money to be made, a stockbroker should assist,” it states.
Contacting the company registrars, whose name should appear on a share certificate, is another method of verifying its authenticity. Registrars keep track of who owns what shares in a company. The registrars maintain a registry of all the registered owners and are able to trace ownership back for long periods of time. If the company has changed its name, gone bankrupt, merged with another company, or has been taken over, they can help investors by researching its history.
What happens if dividends are not claimed?
Whenever a dividend is not paid or claimed within 30 days of its declaration, the unpaid or unclaimed balance is moved to an account designated as the “Unpaid Dividend Account” in a scheduled bank by the corporation. Unpaid Dividend Account Interest: 12 percent per year if the corporation fails to transfer the unpaid dividend into the Unpaid Dividend Account after the date of default. The members benefit from the interest earned on this sum. The company prepares a statement through Form No. IEPF 2 containing the names, last known address, and the amount and nature of unpaid/unclaimed dividends, the due date for transfer into the Investor Education and Protection Fund, and any other information that it deems necessary and posts it on its website and any other website as prescribed by the Central Government within 90 days of the transfer. In order to get their portion, eligible members can contact the company and do so.
Unclaimed funds are transferred to a fund created by the Central Government if they remain unclaimed for a period of seven years “A statement is issued to the authorities responsible for the fund regarding the transfer of funds. To prove the transfer, a receipt is sent to the corporation by the authority. All unpaid dividends are transferred to an IEPF suspense account, along with all other shares (on the name of the company). In addition, the corporation publishes a notice in a wide-circulation English and regional newspaper, as well as on its website, three months before to the move. If a specific order from a Court/Tribunal/Statutory Authority is preventing the transfer of shares, the corporation will not do so (authorities are to be intimated of the unpaid dividend and corresponding shares within 30 days of the end of the financial year). Once the transferees’ voting rights are reclaimed, the shares’ voting rights remain frozen. As a member, you are entitled to enjoy the advantages that accrue on your shares, even if the shares are held by the authority on your behalf.
While it’s true that some dividend warrants may not have been cashed, if an owner has cashed any in the recent seven years, they do not need to be transferred to the Fund.
You can request for your share transfer or refund by filling out Form IEPF 5 online and paying the required cost, which can be done at any time. Application form and required documentation must be sent to relevant company within 15 days after submitting the application, which will then send a verification report to the authorities. Within 60 days of obtaining the verification report, the authorities distribute the shares (or refund) to the account holders. If IEPF doesn’t have the rightful owners, it can’t give the shares away. The IEPF has designated a Nodal Officer for each company that has deposited money into the fund. It’s possible for IEPF authorities to reject a claim if they don’t get the required papers within 90 days of completing an IEPF 5 form.
Rules for the Investor Protection Fund Authority (Audit, Transfer and Refund) of 2016: Rule 7(4) states that the method of transfer is
“The Authority and Drawing and Disbursement Officer of the Authority shall present a bill to the Pay and Accounts Office for e-payment as per the guidelines, and (b) to the shares claimed, the Authority shall issue a refund sanction order with the approval of the Competent Authority and shall credit the shares to the DEMAT account of the claimant to the extent of the claimant’s entitlement.
The corporation will be punished not less than 5 lakhs but up to 25 lakhs (in rupees) if any of the aforementioned provisions aren’t followed, and each official responsible will be fined not less than 1 lakh but up to 5 lakhs (in rupees) (in rupees).
