For many investors in India, the shares which were purchased long ago are sometimes not visible now in their demat or not being remembered where they are kept. This situation is very common because earlier shares were held in physical certificates and over time they are being misplaced, forgotten, or simply lying unclaimed in some corner. Even in the demat era, shares can go unnoticed due to change of address, dividend not being received, or company records not being updated. These are being called as lost shares or unclaimed shares, and many investors are not even knowing that value of such shares may have become huge today.
So the question comes, how these shares can be tracked and how the rightful owner can claim them back? The process is not always simple, but step by step it can be explained clearly.
Why Shares Are Being Lost or Unclaimed
There are many reasons why shares are not seen in the investor’s hands anymore.
- Many certificates were issued in paper form and over years they are misplaced.
- Investors change their residence or city and company records are not updated, so dividend cheques are returned and shares go into unclaimed status.
- In cases of death of original shareholder, the heirs sometimes do not even know about the shares held.
- Companies merged, changed names or got delisted, and records were not followed by investor.
Because of all these reasons, crores worth of investor wealth is lying unclaimed in India and many families are not aware of it.
Tracking of Lost or Unclaimed Shares
The very first step is always tracking. If an investor suspects that some shares are not being reflected in demat or physical form, certain checks are needed to be done.
- Check with the Company Registrar (RTA): Every listed company has a registrar who maintains shareholder records. Queries can be sent to them.
- Check Old Records: Old folio numbers, dividend warrants, or physical share certificates if available should be searched.
- Check with Depositories: If demat was done, then NSDL or CDSL can be checked.
- Check with IEPF Authority: If dividend was unclaimed for 7 years, the shares are transferred to IEPF. The IEPF website can show if shares are transferred in the government account.
By these steps, the location of the shares can be tracked.
Claiming of Lost Shares from Company or RTA
If the shares are still lying with the company or registrar and not yet transferred to IEPF, then the claim can be made directly.
- Application has to be submitted along with proof of identity, address, and original share certificates if available.
- If share certificates are lost, then duplicate share certificates can be requested by following the process of indemnity bond, affidavit, and newspaper advertisement as per company rules.
- Once documents are verified, the shares can be reissued and later dematerialised into demat account.
This process sometimes takes long time because companies and registrars do detailed checks before issuing duplicate shares.
Claiming of Shares from IEPF Authority
If the shares have already been transferred to the Investor Education and Protection Fund (IEPF), then a specific procedure is being followed.
- Form IEPF-5 has to be filled online with complete details of claimant, company, and number of shares.
- The form and documents are submitted to the company and also to IEPF Authority.
- Documents like Aadhaar, PAN, death certificate (in case of legal heir), transmission papers, indemnity bond and cancelled cheque are usually required.
- After scrutiny, the IEPF Authority verifies and approves the claim, and shares are transferred back to the claimant’s demat account.
Though this looks simple in theory, in reality it can take many months because multiple authorities are involved and mistakes in documentation can delay the process further.
Challenges Faced in Recovery
Many investors find this process complicated because:
- Old records are missing.
- Multiple legal heirs are there in case of deceased shareholder.
- Companies and registrars take time in replying.
- Mistakes in IEPF form or documents cause rejection.
Because of this, many people take professional help from experts who are specialised in lost share recovery and IEPF claim services.
Conclusion
The issue of lost and unclaimed shares is very common but not hopeless. With proper tracking, documentation, and persistence, these shares can be claimed back by rightful investors or their heirs. The process may look long and sometimes confusing, but it is designed to make sure only genuine claims are settled.
By carefully following the steps of tracking through registrars, verifying with IEPF, submitting required documents, and ensuring compliance with legal formalities, investors can recover what belongs to them. In many cases, the value of such recovered shares is significant and can bring major financial relief to families who had forgotten about them.
In the end, what matters most is awareness. Investors should not assume that old shares are gone forever. They can be found, claimed, and restored—and it is always better to start the process sooner rather than later.
Related Articles:
https://muds.co.in/understanding-the-iepf-process-for-unclaimed-dividend-recovery/
https://muds.co.in/unclaimed-dividend-iepf-a-comprehensive-guide-to-recovering-your-money/
https://muds.co.in/sebis-new-icdr-rules-2025-what-every-investor-must-know/
https://muds.co.in/tracing-lost-shares-made-easy-a-practical-guide-to-recovering-your-assets/