Procedure for Claiming Shares / Dividends from IEPF

Investor Education and Protection Fund Rules, 2017 were created by the Ministry of Corporate Affairs to facilitate the recovery of such shares. According to these Rules, any unpaid or unclaimed dividend for more than seven consecutive years from the date of their declaration is transferred to the IEPF account.

However, one must finish the company's transmission process before submitting an application to claim shares from the iepf. The Nodal Officer of the company verifies the claim when submitted in the designated form, and upon successful verification, it sends a verified report to the IEPF Authority. As a result, this blog just briefly describes the complete procedure of claiming shares from IEPF.

Read also this -: Detailed Procedure for Recovery of Shares From IEPF

Transferring Unclaimed Shares to the IEPF

A corporation must transfer the shares with unclaimed or unpaid dividends for more than seven years to the IEPF, together with any accumulated interest. For the purpose of claiming shares from iepf, the corporation must provide the IEPF Authority with the specifics of such a transfer. By submitting an application to the IEPF Authority, which keeps track of every account, a shareholder may request the return of unclaimed shares that the corporation has transferred to the IEPF.

Steps to take in order to claim shares from the IEPF

  • Before claiming any of the company's shares, an investor claiming shares from iepf must first finish the company's transmission process. After that, the investor submits an application to the Ministry of Corporate Affairs for the claimed shares using the given IEPF Form 5 and provides all the necessary information.
  • The claimant then sends the identical Form, along with all other supporting documentation, to the company's registrar in an envelope marked "claiming shares from iepf."
  • Within 15 days, the enterprise must produce a validated report and send it, in a format recommended by the authority, to the authority.,/li>
  • The Authority will send a bill to the Pay and Accounts Officer for payment in accordance with the procedures for claiming shares from the iepf after properly verifying the claimant's right.
  • A sanction order for a refund is issued by Authority together with the competent Authority's permission.
  • The shares are then transferred to the claimant, and this process takes place within 60 days after the date the company's verification report was submitted to the IEPF Authority.
    • Read also this -: What is the Process to Claim Shares from the IEPF Account

    Conclusion

    The purpose of the IEPF Authority is to safeguard the interests of investors who hold shares on the Indian Stock Exchange but whose dividends have not yet been paid. With the exception of the bonus, which aids in claiming shares from IEPF, dividends on shares that have not been cashed for seven consecutive years are transferred to the IEPF Authority. We now hope that our blog has allayed your fears about how to obtain unclaimed shares and which agency is responsible for safeguarding share interests. If you have any additional questions, you can contact our team of legalraasta professionals, who can provide you with accurate help throughout this procedure, from completing the form to gathering the necessary documentation to having the money returned to your account.

    Location: India

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