Reclaiming Your Investments: A Guide to Recovering Unclaimed Dividends in the Indian Market

In the Indian market, unclaimed dividends are a common occurrence and can cause investors to suffer sizable losses. It's crucial to know how to get your unclaimed dividends back if you're an investor. The reasons why dividends go unclaimed and the actions you can take to get them back are discussed in this article.

Causes of Unclaimed Dividends

Unclaimed dividends can occur for several reasons. One of the primary reasons is that investors may forget to claim their dividends or fail to update their contact information with the company. Additionally, in some cases, investors may not be aware that they are entitled to dividends. Other reasons for unclaimed dividends include issues with the electronic transfer of dividends, issues with cheques, and legal disputes. If you have unclaimed dividends, the following steps can help you recover them.

Step 1: Identify the Unclaimed Dividends

The first step is to identify the unclaimed dividends. You can check the company's website or the Ministry of Corporate Affairs website to find out if you have unclaimed dividends.

Step 2: Submit the Required Documents

Once you have identified the unclaimed dividends, the next step is to submit the required documents to the company. The documents required may include proof of identity, proof of address, and a copy of the dividend warrant

Step 3: Follow Up with the Company

After submitting the required documents, it is essential to follow up with the company to ensure that your claim is being processed. You can reach out to the company's investor relations department to get updates on the status of your claim.

Step 4: Take Legal Action

If the company does not respond to your claim or denies your claim, you may need to take legal action. In such cases, it is recommended to seek the assistance of a legal service provider like Legal Raasta to guide you through the legal process.

Recovery of Dividend Under the Companies Act, 2013

The Companies Act, 2013, has provisions for the recovery of unclaimed dividends. Under Section 124(5) of the Companies Act, 2013, if the dividend remains unclaimed for seven years from the date it became due for payment, the company is required to transfer the unclaimed dividend to a separate account known as the Unpaid Dividend Account.

Conclusion

Unclaimed dividends can lead to significant losses for investors, and it is essential to take the necessary steps to recover them. If you have unclaimed dividends, you can follow the steps outlined in this article to recover them. Seeking the assistance of a professional service provider like Legal Raasta can also help simplify the process and ensure that your claim is processed in a timely and efficient manner. With their expertise in recovery of dividend, Legal Raasta can guide you through the process and help you recover your unclaimed dividends.

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