When a close family member dies while holding a physical Share Certificate, it causes some immediate complications. You may circumvent these challenges by following a logical strategy while transferring a Physical Certificate. This is the strategy you must take.

When SEBI made the transmission of Physical Certificate shares (before dematerialization) illegal in January 2019, there was much concern about what would happen to inherited shares. It is important to remember, however, that inheriting shares upon the death of a family member is not a transfer of shares, but rather a transmission of a Share Certificate. The transfer is a voluntary action, but the transmission is a legal requirement. The 2019 SEBI decision only limits the actual transfer of shares. Physical Certificate share transfers are still allowed.

Even if a close relative, such as your parents, dies while holding a physical Share Certificate, it causes some immediate problems. You can overcome these challenges if you take a thorough approach. This is how you would proceed if your mother died with genuine share certificates in her name.

What if she’d have nominated you for the Physical Certificate?

In this case, the technique is rather simple. To transfer shares, you must file an application with the appropriate registrar. Proof of nomination in your favour, as well as a copy of your mother’s death certificate, are required to accompany the application. Once these papers have been validated by the registrars of the firms where Share Certificates are stored, they will undertake the transmission of shares in your name.

Once the Physical Certificate shares are transferred to your name, you can either keep them in Physical Certificate form or dematerialize them and keep them in your demat account. If you just intend to maintain the shares, you can do so in physical form. However, if you wish to sell the shares, dematerialization is required. In fact, even if you do not intend to sell the shares right away, it is preferable to dematerialize them so that you may monetize them even if you do not sell them. In such a situation, a simpler way is to use transmission-cum-demat, or TCD, in which dematerialization occurs concurrently with the transmission.

You must guarantee that the nominated name and the name in your demat account are the same, which simplifies the procedure. Otherwise, you can form a new demat account simply to receive the shares transferred and then transfer them to your main demat account through an off-market transfer. Your mum may have made many nominations at times. In that instance, the transmission will occur into a joint account, and you will be allowed to transfer the shares in accordance with your internal agreement.

What if your mother dies without being nominated?

This may make the operation more difficult and time-consuming. In the absence of a nomination, the transfer will take place through the legal process in compliance with SEBI LODR legislation. In this case, the application for transfer must be accompanied by the death certificate as well as a legal affidavit signed by a magistrate naming the legal nominees for the shares. The method involves legal review and takes longer than a simple nomination.

In this scenario, the process must be accurately explained. In the absence of a share nomination, the validity of a will, succession certificate, or letter of administration will suffice. If neither of these circumstances is satisfied, the operation of the legislation kicks in. To begin, if the Share Certificate is held in joint name, the co-owner becomes an immediate co-owner. This is a straightforward procedure that involves only an application to the registrar and a copy of the death certificate. All legal heirs must sign a duty stamped affidavit if your mother is a sole holder who died without a will or nomination.

Is it possible to get sole ownership if there are several legal heirs?

If all of the legal heirs agree that you should have exclusive ownership of the shares, the law respects that. In such instances, you must consider two options. To begin, if the value of the shares is less than Rs2 lakhs, a simple NOC in your favour from all legal heirs is adequate. A family settlement agreement with an indemnity bond is also acceptable.

However, if the value of the shares exceeds Rs2 lakhs, all legal heirs must get together and sign a declaration affidavit recognising you as the lawful claimant of the shares. That should be sufficient for you to initiate transmission.

Consider these thumb rules

Here are three simple thumb guidelines to remember in such situations. To begin, even if you do not intend to sell the shares right away, always guarantee that they are dematerialized rather being held in Physical Certificate form. Second, nomination/probate will is usually recommended to avoid future legal issues, especially in the case of substantial value possessions. Finally, be sure that all of these facts are documented, registered, and available to legal successors. It has the potential to fix a million issues.

Instructions for crediting transferred Physical Certificate shares in Demat mode:

1. Following the processing of the re-lodged transfer request, the RTA shall hold the physical Share Certificate and notify the investor (transferee) of the transfer’s execution through a Letter of Confirmation. This letter shall be submitted through Registered / Speed Post or via email with a digitally signed letter and shall, among other things, include information of endorsement, shares, and investor folio (needed on Demat request form) as accessible on physical shares.
2. Within 90 days of receiving the Letter of Confirmation, the investor must submit the Demat request to the Depository Participant (DP) along with the Letter of Confirmation. At the conclusion of the 60-day period following the issuance of the Letter of Confirmation, RTA shall provide a reminder advising the investor to submit the Demat request as described above.
3. The Depository Participant will process the Demat Request based on the Document of Confirmation, as this letter confirms RTA’s possession of a Physical Certificate on the investor’s behalf.
4. Annexure – A has a proposed format for the Letter of Confirmation.
5. In the event of shares that are required to be locked-in pursuant to SEBI Circular SEBI/HO/MIRSD/DOS3/CIR/P/2018/139, dated November 06, 2018, the RTA should, in addition to approving/confirming the Demat request, incorporate/inform the Depository of the lock-in and its term. Such shares will be locked in Demat mode for 6 months from the date of transfer registration.
6. If the investor does not submit a Demat request within 90 days of the date of the Letter of Confirmation, the shares will be credited to the Company’s Suspense Escrow Demat Account.

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The corporation offers you instructions on how to get a duplicate Paper Shares certificate, which involves completing an affidavit and signing a surety and indemnity bond agreement. In a letter, the corporation instructs you on how to carry out the procedure for issuing duplicate certificates. After that, you’ll need to draft an affidavit and an indemnification bond agreement with a franking fee of roughly Rs. 300. The affidavit and surety bond must also be notarized. This indemnification & surety bond should be signed by two witnesses who are not family members to lend credibility. It is critical to get a duplicate Paper Shares certificate and to furnish an indemnification and surety bond.

What You Must Do After Losing Paper Shares?

You must register an FIR (first information report) with the police after receiving this completed paperwork, including the specifics of the missing share certificates, such as the folio number, business name, Paper Shares certificate number, and a unique number of shares, among other things.

You must now issue a broad notice reporting the loss of share certificates in a government gazette. The shareholder’s information, share certificate numbers, and distinguishing numbers of missing shares should all be included in the notice.

It is customary to publish a general notice in a government gazette—at the location of the registered office—informing the public of the loss of the share certificate and the company’s request to consider issuing a duplicate share certificate in its stead.

The shareholder is usually responsible for the expense of publishing the general notice. You must send the following documents to the company/registrars: affidavit, indemnity & surety bond, authentic copy of FIR of police report disclosure loss of share certificates, and voucher copy of advertisement published in the government gazette publication regarding loss of share certificates.

The corporation/registrars will execute requests for duplicate Paper Shares certificate issues after verifying the papers supplied. From the date of receipt of all legal papers by the firm/registrars, it usually takes four to six weeks for the shareholders to get duplicates. Keep in mind that every issuing of a duplicate share certificate requires prior approval from the company’s board of directors or a committee.

The words ‘Duplicate issued in place of share certificate No XXX’ must be inscribed on the front of the duplicate share certificate, and the term ‘DUPLICATE’ must be stamped in strong letters across the face of the share certificate. The name of the shareholder to whom the duplicate share certificate is issued, as well as the number and date of the new share certificate, will be put in the register of renewed and duplicate share certificates.

All stock exchanges where the company’s shares are listed will be notified of the issuing of duplicate share certificates and the cancellation of existing share certificates.

Recover Your Lost Paper Shares From IEPF?

Many individuals put their money into stocks and forget to claim them, or they expire before they can be claimed. In such circumstances, the funds go unclaimed for a long time. The Investor Education and Protection Fund (IEPF) was established by the Ministry of Corporate Affairs (MCA) to ensure that unclaimed Paper Shares  were transferred to and received by the correct individual.

According to Section 124 of the Companies Act, 2013 and the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016, a company’s shareholders can seek a refund of their unclaimed shares transferred to the IEPF by the firm.

How To Transfer Unclaimed Paper Shares to IEPF?

A corporation must transfer shares to the IEPF, together with any accumulated interest, if the dividend has not been claimed or paid for more than seven years. The corporation must notify the IEPF Authority of the transfer’s information. A shareholder can reclaim unclaimed shares transferred to the IEPF by submitting an application to the IEPF Authority, which keeps track of all accounts.

Apply For IEPF Authority for Recovery of Paper Shares

Any stakeholder whose unclaimed shares have been transferred to the IEPF can petition to the IEPF Authority for a return of those shares. In a financial year, however, a claimant can only file one combined claim on a firm. The data from the multiple Folios from the same firm should be included in the aggregated claim.

Before filing an IEPF claim with the authorities, the claimant should ensure that the firm completes the share transmission procedure and sends an entitlement letter to the legal heir, nominee, or successor of the registered shareholder.

What is the Process of Recovery of Paper Shares From IEPF?

Step 1: Sending Application to the Authority 

A claimant who desires to get a refund or recover shares in his or her name should fill out Form IEPF-5 and submit it to the MCA site. On the form, the claimant should include the following information:

• Information about the application (claimant)
• The firm details, including the CIN number, from which the payment is to be made.
• The specifics of the Paper Shares that must be claimed
• The amount of the dividend that must be claimed
• When the claimant is an Indian citizen, the claimant’s Aadhaar number is used; when the claimant is an NRI or foreigner, the claimant’s passport/OCI/PIO card number is used.
• Details of the Aadhaar-linked bank account where the claim will be repaid
• Account number for depository receipts

Step 2: Submitting the Application to the Company 

• After filing Form IEPF-5, the claimant should send a copy of the form, along with the accompanying papers, to the company’s IEPF Nodal Officer/Registrar in an envelope labelled “Claim for reimbursement from IEPF Authority.”
• Copy of the acknowledgment with the SRN number and a printout of the filled-out Form IEPF-5 with the claimant’s signature.
• Original indemnity bond signed by the claimant on non-judicial stamp paper in the amount specified by the Stamp Act Original advance stamped receipt signed by the claimant and witnesses
• Share certifications that are authentic (if shares are in physical form “Paper Shares”) or a duplicate of the transaction statement (if securities are in Demat form).
• Aadhaar card is a unique identification number issued by the government of India.
• Proof of eligibility, such as a share certificate or an interest warrant application number.
• In the case of NRIs and foreigners, a passport, Overseas Citizen of India (OCI), or Person of Indian Origin (PIO) card is required.
• Check that has been cancelled
• A copy of the client master list for a Demat account

Step 3: Complete Submission of Claim to the IEPF Authority 

After 15 days of receiving an application form from a claimant, the firm must create a verification report and send it to the IEPF Authorities together with the claimant’s documents.

Step 4: Recovery Completed!!

After receiving the verification report from the relevant firm that verified the claimant’s application, the IEPF Authority must make a decision on the claimant’s reimbursement application within 60 days.

When the claimant is entitled to the shares with the authorization of the competent authority, the IEPF Authority will issue a return sanction order. After validating the claimant’s entitlement, the IEPF Authority and the Drawing and Disbursing Officer will issue a bill to the Pay and Accounts Officer for payment. The claimant’s Demat account will be credited with the shares or the amount of the claimant’s entitlement.

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The entire world is turning digital, and the stock exchange is no exception. Since the commencement of the digital India campaign, the Indian government has been very keen on digitizing all operations and eliminating paper. This not only helps the environment, but it also solves the problems related with paper documents. However, questions such as “how to convert my physical shares into demat?” can still be found. In this blog, we will learn in simple steps how to the transfer physical shares into demat accounts.

Why is Share Transfer to Demat Account Needed?

Before beginning the share transfer process, one must first understand why this procedure is required in the first place. When stock trading first became popular in the 1970s or 1980s, there were only actual share certificates to prove ownership of the shares. Furthermore, stock dealing entailed physically exchanging share certificates. Physical share certificates were riskier to trade since they may be destroyed for a variety of reasons. There was also the possibility that they might be misplaced or stolen. Even stock trading needed the actual presence of the shareholder, making it difficult for people from other regions to participate in the stock trading industry.

To address these issues, the government and market regulator devised a digitized form of share. The digital shares were simple to exchange and did not require the shareholder’s physical presence. The government also created a unique demat account that was designed particularly for stocks. This was a significant step toward the total digitalization of the Indian stock market and trading activity. It is now customary for shareholders who want to trade their equities online to convert their shares into digital form. The procedure is known as share dematerialization or demat of shares.

Procedure for Share Transfer 

Shares that are physically present with stockholders are often from their parents or grandparents. These may only be moved to a Demat account once they have been dematerialized. According to a circular issued by the Board (SEBI) in 2019, a share transfer request to the shareholder’s demat account cannot be performed if the shares are not in their dematerialized form. The request, however, contains the following exceptions.

• Transmission of Shares

The transmission of shares differs fundamentally from the online transfer of shares. This signifies that the shares’ whole ownership is being transferred to another stakeholder. For example, if you wish to have your parents’ shares in your own demat account, you must first get the shares transferred to your name. As a result, you will be the new owner of the shares. Following that, you can request that physical shares certificate be converted to digitized or dematerialized form before being transferred to your own demat account. In such a case, share ownership can be transferred by succession certificate or inheritance.

• Transposition of Securities

The process of modifying or rearranging the order of shareholders is referred to as this procedure. This procedure differs from transfer in that it just includes the rearrangement of names.

Steps of Transferring Shares to Demat Account

• If a shareholder owns physical share certificates for a company’s shares that are actively traded in digital form, he must convert them to dematerialized form. Following that, the shares must be moved to a Demat account in order to continue trading. The following stage in the procedure is to open a demat account.
• Opening a demat account is a straightforward process that may be accomplished online. To open the same account offline, an investor must meet with a representative from a chosen brokerage firm. The investor’s KYC documents, such as an aadhar card and a PAN card, would be collected by the representative. An investor can transfer dematerialised shares to such an account after creating one.
• The next step is to dematerialize the existing physical shares so that they may be transferred to the demat account. Four physical share certificates can be converted to digital form using a single DRF or Dematerialisation request form. An investor must file multiple sets of DRFs if he or she owns more than four share certificates. These DRF forms, together with the relevant KYC documentation, must be sent to the shareholders’ brokers. The broker forwards the necessary documentation to the registrar or transfer agent of the firm whose shares are being converted. The registrar transforms such shares into market-value equivalent digital shares. Following conversion, the identical number of shares will begin to appear in the investor’s demat account.

Fee to Convert Physical Shares to Demat Form

The fee imposed by the broker to convert physical shares to digital form is the first expense that the investor must face in this conversion procedure. In general, broker firms impose yearly fees ranging from Rs. 200 to Rs. 850 in order to recruit additional investors or for marketing purposes. The transaction fees for this process vary from broker to broker for the same reason. As a result, before beginning the process of share conversion, the investor should compare prices from several broker businesses. Conversion fees for actual shares typically vary between 150 and 400 rupees per share certificate. The charge varies amongst brokers since some offer extra services in addition to conversion. The software conversion procedure may also be performed with the help of internet specialists. According to the SEBI announcement, the registrar must complete the entire process of share conversion within 21 days, unless there are exceptional circumstances.

Documents Required to Convert Physical Share Certificate to Demat 

The following are the necessary documents for transferring physical shares to Demat India:

• Aadhaar card/PAN card
• Residential Proof
• Bank Passbook Statement
• The original copy of the stock certificates you own. The information on the physical share certificates must be visible and in good shape.
• Form for Dematerialization shares
• In the physical share certificates, each paper share must be marked “Surrendered for Dematerialization.” Get an acknowledgment slip for the shares you are surrendering, don’t forget.

Advantages of Dematerialized Shares

Share transfer to Demat Account has numerous benefits, some of which are listed below:

• Safety: Dematerialization reduces the possibility of shares being stolen, falsified, or misplaced, enhancing the holding’s security. Theft is no longer an issue because they are kept in safe depositories.
• Convenience: Due to the electronic nature of dematerialized shares(Convert physical shares into demat), issues with storage and upkeep are no longer an issue. You won’t have to worry about misplaced or damaged credentials any longer.
• Accessibility: All sharing records are kept online and electronically. As a result, you may use the internet to access dematerialized shares (Convert physical shares into demat) practically anytime and almost anywhere.
• Cost-effectiveness: Since electronic trading eliminates the need for time-consuming documentation, less money is spent.
• Flexibility: Dematerialization (Convert physical shares into demat) boosted access for small investors by increasing flexibility. There are no more limitations on the number of shares that can be purchased or sold.

Why Choose Muds? 

Your aspirations will become a reality, and your long-lost shares claims will be recovered! 

Muds team of professionals is skilled in recovering your family’s or your own hard-earned physical shares certificates that have been lost, forgotten, broken up into shares, or left unclaimed. Our ability to make the impossible possible distinguishes us from rivals. The recovery of shares, claims for transferring Physical shares (Convert physical shares) and dividends are under our area of competence. To file an IEPF claim, our experts will follow all procedures and finish all documentation formally approved by investors.

Conclusion

Varying brokers charge different fees for converting physical shares and transferring them to a Demat account. They should ideally conduct some research before committing to any broker in order to obtain these services. An investor may locate a helpful broker firm that can handle the transfer procedure at a low cost with careful investigation. The process may be time-consuming for investors, so they should not spend their time completing the transfer processes. Having a trustworthy broker may help the organization save time and money.

The post A Layman’s Guide to Transferring Physical Shares into Demat Account appeared first on MUDS.

If you have shareholdings of the Bata India Ltd. or your father or grandfather have old physical share certificate of the company then this blog will be an important read for you. This blog is also for understanding the difference between unclaimed shares and dormant shares.

The old shares of Bata can fetch huge profits for an investor but should understand the whole process to claim them. With the current provisions of the government in place, an investor might need to raise the claim for dividends related to old shares with IEPF. In the following sections, we will study the history of Bata India Ltd. its share growth. We will also demonstrate its share growth by taking an example of a hypothetical investment. We will follow this up with some data about dividends released by the company over two decades and then study the IEPF and its share claim process.

History of Bata India Limited

Bata India Limited is a company known for its business of producing high and middle-range footwear and its trading throughout India. The company also sells various accessories through its pan India network of retail and wholesale units. The company is also into the development of surplus property in the real estate segment of the Indian Market. Its footwear manufacturing and the trading segment are responsible for carrying out the production of various types of footwear or all price ranges. The segment is also responsible for the manufacturing of various accessories and their sale in the market through its retail and wholesale outlets. Its surplus property development arm is responsible for developing surplus property at the place named Batanagar in India. Its retail outlet network comprises over 1,200 stores spread across all major cities in the country. It also has an operating network of non-retail distribution networks which operates through its urban wholesale division and caters to a variety of customers through almost 30,000 dealers. The accessories offered by the company for women include handbags, clutches and scarves, belts. For men, its accessories collection contains shoe care products, belts, and wallets. Its brands include Bata, Bubblegummers, Bata Comfit, Hush Puppies, Weinbrenner, Power, Power,  and Naturalizer.

Over the years of its operation in the company which started way before the Indian independence, Bata has grown into a trusted brand among Indian customers. Even during the Corona crisis, the company continued its growth journey and the results for the last quarter were encouraging for the investors. In the following section, we will understand the tremendous growth in value of Bata’s shares over the past few decades through a calculation based on a hypothetical investment made in the company in 1978. 

Calculation related to Bata’s Share growth

• Suppose someone bought 100 shares of Bata in January 1978 which might have been worth a few thousand only as the share prices were quite low.
• Now, Bata has been known for giving bonus shares to its investors as a gift for their loyalty and trust in the company’s business. Bonus shares are fully paid-up shares that are introduced in a ratio by companies for shares owned by the investors. For example, if a company introduces bonus shares in the ratio of 3:5 then it will mean that for every 3 shares owned by the investor the company will give 5 shares as a bonus

Now. According to the bonus history of Bata India Ltd., it has introduced a bonus three times in the following ratio as shown in the table.

The bonus history of Bata is given in the following table:

Sources: https://economictimes.indiatimes.com/bata-india-ltd/infocompanybonus/companyid-13974.cms

• The issue of bonus shares in were 1:4 which meant 4 bonus shares for every 1 share. So, the net shares owned after this were 100 shares + 400 bonus shares = 500 shares.
• Similarly, bonus shares issued in 1984 were 2:5, that is 5 shares for every two shares. This meant that the total no. of shares was 500 shares + 1250 bonus shares = 1750 shares.
• Another bonus was introduced in 1987 in the ratio 1:1. This made the total no of shares equal to 1750 shares + 1750 bonus shares = 3500 shares.
• Now, due to the steep increase in the price of Bata India Ltd.’s shares, it announced a stock split from 2:1 in 2015 to make their shares affordable for small retail investors.

The stock split from 2 to 1 meant if the face value of a share was Rs. 10 then it has now become 2 shares of value 5 rs. each.

Source: https://thebatacompany.com/the-company/

• The stock split would have raised the total no. of shares to double that is 7000 shares.

Source:  https://economictimes.indiatimes.com/bata-india-ltd/infocompanysplits/companyid-13974.cms

• However, the price per share of Bata’s share still managed to plummet over the years and stand at the rate of Rs. 1,406.20 in March 2021.
• Considering this rate, the current value of the shareholder’s investment made in 1978 would be

7000 shares x Rs. 1406.20 = Rs. 98, 43, 400.

Source: https://economictimes.indiatimes.com/bata-india-ltd/infocompanysplits/companyid-13974.cms

 https://economictimes.indiatimes.com/bata-india-ltd/infocompanybonus/companyid-13974.cms

https://in.investing.com/equities/bata-india-historical-data?interval_sec=monthly

So, we can observe how the prices of Bata shares bought in 1978 in a few thousand rupees became almost Rs. 98.5 Lakhs by 2021. This huge share growth is enough evidence that finding old shares of Bata from an investment made by any elderly in-home or parents could be like finding lost treasure. One can simply contact any financial consultancy firm after finding such old share certificates and raise the claim with their help to the company or the IEPF authority.

The above-calculated value of shares is not the final value. It doesn’t contain the dividends shared by the company on these shares since the day they were bought. If we add the price received as dividends then the overall growth will cross limits. This is why we are saying that even after all the expenses related to shareholding and claim the final amount received on such shares would be huge enough to save the investor from any financial crisis.

In the following section, we have given a list containing dividends released by Bata India Ltd since the year 1999.  Any business analyst or investor can study this table to get the basic idea of how the dividends have grown over the years on the Bata shareholdings.  

DIVIDEND Released by Bata India Ltd.

The following table gives data on the year-by-year dividends released by Bata India Ltd. since 1999.

Source: https://economictimes.indiatimes.com/bata-india-ltd/infocompanydividends/companyid-13974.cms

What is Investor Education and Protection Fund [IEPF]?

There could be a plethora of reasons that could lead an investor to ditch his investments. Due to this, in almost every firm, dormant shares are lying within the unclaimed shares account without anyone to lay a claim on them.

Earlier, the businesses were asked by the government to transfer such dormant capital to their general public welfare account where this money might be utilized in the government’s infrastructure projects and public welfare schemes. However, there was no law to guide the businesses and therefore they were unsure about the quality procedure to resolve the difficulty of unclaimed dividends. Also, there was no procedure available for people coming after years to lay a claim on their money. Either the government could have let the businesses keep these huge amounts to themselves expecting the rightful shareholder to return for their dividend or it could simply reject the claim request of investors.

Both the choices seemed unviable as a company could use these dormant funds for its benefits. Also, neither the company nor the government has any right to reject a rightful owner from getting his value of the investment. So, to deal with this issue, the govt. came up with IEPF authority which was liable for handling the dormant shares and dividends of investors. The government also released rules for IEPF and therefore the procedure to get dividends from IEPF for the investors. We will understand in short about the provisions of IEPF for the claim of dividends before moving on to the procedure of claiming the shares.

It might be a touch hard to believe but it’s quite common for senior citizens to ditch their old shareholdings in several companies. There are many reasons for the said behaviour, such as:

• Investment of a micro capital which individuals tend to forget after a particular time thinking that it might not grow significantly.
• Health problems with senior citizens lead them to forget their investments made during adult days.
• People buy shares of a firm without naming any nominee. If they die, the shares might remain unclaimed because the possible heirs of the deceased don’t have any knowledge of the existence of such shares.
• Sometimes, there are many possible heirs of the dead person and therefore the shares in question grind to a halt in the legal battle between the parties claiming them and thus remain dormant for years till a resolution is reached.

Procedures Governing IEPF

The released provisions of the IEPF by the government stated that an investor must claim his dividend from the corporation/company within one month of its release. If the investor doesn’t claim the cash within one month then the entity is obliged to transfer this unclaimed dividend to its special unclaimed dividend account created as per IEPF rules. The unclaimed dividends will dwell in this account for seven years during which an investor can simply contact the company’s nodal officer or agency to lay claim on the dividend from this account. After seven years, the dividends must be transferred to the IEPF account and it’ll dwell in that account until a claimant makes a legitimate claim request to IEPF with relevant documents. So, all the businesses must transfer all the dormant shares from their unclaimed dividend account to the IEPF if they’re older than seven years.

The investors whose shares older than seven years are transferred to the IEPF can apply to IEPF for recovery of shares and dividends. The procedure for an equivalent is illustrated in short within the following section.

Why does one Need Legal Help?

The procedure to file a claim from IEPF is a 4 step process. 

• A claimant should reach the company’s nodal officer to get details of his shares. If the shares have been transferred to IEPF then he must make an online application on its website. 
• After making the online application the claimant should simply download the filled application and send it to the nodal officer of the company with all the relevant documents for verification.
• The nodal officer will verify all the documents and forms. Within fifteen-day, the nodal officer has to send all the documents with the application form and a verification report of the same to the IEPF Authority.
• In the last step, the authority will verify every document, application form, and verification report. If they found some discrepancy or any missing document then they will send a notice to the claimant via nodal officer to rectify the mistake within two weeks or submit the additional document. If everything is good then they may pass the claim. If there are major mistakes or faults in documents then the claim will be rejected. 

As mentioned, the method to file the claim for lost shares or unclaimed shares from IEPF is complex and an application has got to undergo intense scrutiny to be eligible for approval. Hence any small errors or non-filing of any relevant document to the IEPF authority must be avoided. To do so, a claimant can simply hire a financial consulting firm who will complete the entire process on their behalf with the responsibility of not committing any error. This may also save the investor from all the effort of liaising with the nodal officer and authority till the claim is approved.

One can simply hire a reputed financial and legal consultancy firm to file all the relevant ownership documents for the claim of shares. They will also help in handling any relevant dispute associated with ownership just in case the first owner of the shares is deceased. Therefore, the perfect procedure for claiming the shares from IEPF is by collaborating with the specialist of the procedure.

The post Recovery of Unclaimed Shares of BATA from IEPF appeared first on MUDS.

Shares of Ultratech Cement were floating at a price of more than Rs. 6123 per share in the market as of 02 Feb 2021. How would you feel if you suddenly come to know that you own some shares of Ultratech? Amazing, right? Even a small number of 16 shares will fetch you an amount equivalent to almost ₹ 1 lakh.

Excited to know, how? Here, We are going to discuss how you could earn a fortune if you just came to know that there exist old shares of UltraTech Cement in your name. If you have long-forgotten shares of UltraTech Cement which remained dormant for years in the IEPF Account, then read this blog to find out how to lay a claim on them.

History of the Ultratech Cement Ltd.

UltraTech Cement Limited has been engaged in the business activities of cement manufacturing and producing cement-related products. The Company handles the manufacturing of a range of products and caters to constructional needs from foundation to finish. The products include Ordinary Portland Cement (OPC), Portland Pozzolana Cement (PPC), Portland Blast Furnace Slag Cement (PSC), ready mix concrete, white cement and white cement-based products, specialty concrete. It also manufactures building products like aerated autoclaved concrete (AAC) blocks with joining mortars and a host of other products. Its geographical segments (Area of Operation) include India and the Rest of the World. The Corporate focuses on a variety of areas of environmental concerns such as alternative fuels, carbon dioxide emission reduction, waste heat recovery systems, waste management, water recycling and biodiversity management. It has over 10 integrated cement units, a white cement unit, approximately 10 grinding units, a wall care putty unit, 5+ bulk terminals, and more than 100 ready mix concrete units.

It has continued to generate profits in the past one and half decades due to which its share price kept on increasing. During the pandemic itself, the stock price has dropped a little but it has picked by huge margins after the lockdown due to increased demands. the company’s net income in the last financial year as declared in March 2020 was Rs. 40649.19 Crores with an added income from other sources amounting to Rs. 726.58 Crores. Even after managing the amount for deductions such as total expenses of Rs. 31996.87 Crores, the company still managed an operating profit of Rs. 8652.38 Cr.

UltraTech Cement is known for giving its shareholders generous dividends. To date, the company has given a total of 17 dividends to its investors. And in 2020 alone, the company has declared a dividend of 130 % per share.

If you have 600 shares of UltraTech Cement registered under your name in 2004, then the value of those shares as of today would have been in crores. The dividend amount alone would have been in lakhs.

Calculation

• Suppose you have 600 shares of UltraTech Cement Ltd. registered under your name in 2004.
• Now, the price of 1 share of UltraTech Cement, as of September 2004, is Rs. 266. Thus, the value of your shares as of September 20004 was,
• ₹ 266 x 600 shares = ₹ 159600 (One Lakh Fifty-Nine Thousand Six Hundred)
• The above amount is only the price of the shares in 2004. Now the same shares would be valued in current terms as per today’s price.
• The amount of as per price in February 2021 is,   

₹ 6208.5 x 600 shares = ₹ 37, 25, 100 (Thirty-Seven Lakhs Twenty Five Thousand One Hundred).

• The amount is an increase of almost 2234% which is humongous. Now we have not added the amount of dividend received on the investment in all these years. If we calculate the dividends according to the chart mentioned above, then the total value of stocks will skyrocket and may end up reaching near one crore.

As you can see, the shareholders of UltraTech Cement have received a huge amount in terms of dividends and valuation increase over time from the company. From 2004 onwards, the shareholders, have made huge profits.

As you could see, if you had invested in only 600 shares of UltraTech Cement, then you would have become a Crorepati by today. Now, imagine that someone has invested in this company a long time ago and then forgot about the invested amount due to any unavoidable reason. Or someone has inherited some shares of Ultratech from the investment of one of their deceased family member, and only got to know about it today. 

In both scenarios, that person would have got rich instantly by today’s valuation of those shares. But here is the catch! Due to no claim on any dividend on these shares for 7 years straight these shares would have now been transferred to IEPF Authority. In such a scenario, these shares won’t be in your possession anymore because they had been transferred to the IEPF fund of the Govt. However, this does not mean that those shares are no longer available for the owner or the heir of the deceased owner. The only difference is that the Government, on the investor’s behalf, is keeping the shares and corresponding dividend with them till someone raises a claim on that.

Investor Education and Protection Fund – An Overview

The Govt. started this scheme to educate the investors and protect them from losing their rights over the funds and therefore the shares. When the investors won’t ditch their shares, the shares will not be transferred to the Govt IEPF Fund. Since the matter of individuals forgetting about their shareholdings of a company was increasing, the Govt realized that it had been causing a huge loss for the investors. Therefore, the Govt in 2016 decided to line up the IEPF. It gives a one-stop solution to the investors for raising the claim on their long-lost investments. Here, the members can approach the govt and claim their dividends and ask them to refund their long-forgotten shares. This authority was initiated keeping in mind the interests of the shareholders of companies listed in the stock markets of India. IEPF protected the investors’ funds while spreading awareness regarding the same among stock investors.

The Government takes care of the unclaimed dividend and lost shares transferred to the present account on behalf of the rightful shareholders. So, after 7 years, investors can simply claim their dividends or shares from the IEPF fund manager by applying to the managing authority. People can claim their dividends and shares of various companies through one platform rather than getting to each company individually, that’s why IEPF is understood as a one-stop solution.

There are various reasons why an investor tends to ditch its investment during a company:

• No Nominee/Heir to Shares: Usually investors don’t appoint a nominee/ heir to require care of the shares after their death. Therefore, the shares remain unclaimed as the perspective heirs are clueless about their ownership.
• Court Disputes: Shares get attached to the court because proceedings are pending within the courts regarding the property dispute. Hence, the shares remain ownerless till the court’s verdict is granted.
• Small Investments: Generally, the investment is of small amounts thanks to which an investor forgets about the shares.

These are amongst many other reasons why an investor forgets about his/ her investment during a company. thanks to these reasons, the dividends on the shares remain unclaimed for years and therefore the companies find themselves with abundant shares lying with them with no sign of ownership.

Rules related to IEPF

The functioning of IEPF is governed by the norms of the Companies Act, 2013 and the regulation of the act comes under Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016. Once a corporation declares a dividend on the shares, the shareholders get 30 days to apply for the said dividend. After 30 days, if the dividends remain unclaimed by the shareholders, then the corporate being consistent with the above-stated IEPF regulations, is obliged to transfer such dividends to a special account. This special account is opened within the name of the corporate, referred to as ‘Unpaid Dividend Account’ of the Company.

After that, the corporate gets 90 days to publish an inventory of all the shareholders along with their unclaimed dividends on its website. Besides, the corporate can also use the other mode of communication to inform its members about their unclaimed dividends kept with the corporate. If a shareholder wants to retrieve his/her unclaimed dividend from the ‘Unpaid Dividend Account’ of the company, then he/she has got to file an application to the agency of the corporate. Even if a shareholder fails to claim the amount from the corporate for 7 years due to any reason stated above, then the corporate shall transfer such unclaimed dividend to the IEPF Account. If the dividends aren’t claimed for 7 years, then the shares on which such dividend was declared were considered as forgotten/dormant shares. Therefore, they also get transferred within the name of the IEPF.

Dividends and Shares of Ultratech Cement in IEPF

The Annual Reports of a corporate state the present status of the dividends and shares of the corporate which are transferred to the IEPF account. consistent with the Annual Report of Ultratech Cement of 2019-2020, all the unclaimed dividends up to the fiscal year 1995-1996 which remained unpaid and unclaimed with the corporate were transferred to the Central Government’s general revenue account. As mentioned above, before the introduction of the IEPF, the businesses were alleged to transfer the funds to the Central Government.

All the unclaimed dividends, from the fiscal year 1996-1997 to 2012-2013, remaining deserted with the corporate, coupled with the related shares, were transferred to the IEPF account within the name of the Central Government. The unclaimed dividends and shares were transferred to the IEPF Under Section 124, Companies Act, 2013 and Investor Education and Protection Fund Authority Rules, 2016.

Unclaimed dividends declared by the corporate for the fiscal year 2012-2013 were recently transferred to the IEPF consistent with the Annual Report 2019-2020. The deadline to say the dividends for the fiscal year of 2013-2014 is going to be given within the annual financial report of 2020-2021. just in case a shareholder wants to get his/ her dividends, then he/ she will have to approach the corporate Registrar/ agency of the corporate with the specified documents. The shareholders can reach the corporate nodal officer of the company Ms. Swati Patil at Email ID: iepf.utcl@adityabirla.com

Dividend transferred to the IEPF by Ultratech

According to the data released by Ultratech Cement in its AGM, It has granted the following dividends on year by year basis to its investors:

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In the previous fiscal years, Ultratech Cement has transferred huge amounts to IEPF. The shareholding in Ultratech which remained unclaimed has been high in previous years.  The company has given the facility to its investors to check whether their amount has been transferred to the IEPF on its website. The corresponding amount for shares can be calculated by multiplying the no. of shares with their current price.

The corporate features a huge chunk of unclaimed shares within the IEPF. Thus, the shareholders are strongly advised to search their investment history, or the ownership of shares passed on from a deceased loved one and claim their dividends and shares from IEPF.

Unclaimed Dividend & Lost Shares of Ultratech Cement Transferred to IEPF

Now, you would possibly be wondering what happens to the shares and therefore the dividend transferred to the IEPF. does one still retain the proper over the unclaimed dividend and therefore the lost shares?

The short answer to this question is “Yes”. Yes, you are doing retain rights over the dividend and therefore the lost shares, regardless of the very fact that an equivalent has been transferred to the IEPF Account. As mentioned above, earlier it wont to happen that the shareholder loses the rights over the dividend amount and therefore the shares once they were transferred to the govt funds. But with the introduction of IEPF, a shareholder does not lose the right over the dividend amount also on the related shares. He/ she will apply to the fund manager to get the accumulated dividend over the years and therefore the shares get back to the first shareholder or the heirs in case he/she is deceased.

Despite this, Ultratech Cement still encourages its investors/shareholders to claim the dividends on time from the corporate itself, and avoid the transfer of shares to the IEPF Account. the corporate send individual letters, through posts and other modes of communication, to remind their shareholders of their holdings within the company. Ultratech Cement does this to stop its members from the rigorous and tiresome procedure of recovering the dividends/shares from the IEPF Authority. The fund manager follows this rigorous procedure to make sure that the shares get transferred to the particular owner only. When shares remain unclaimed for an extended period, i.e., 7 years or more, they become susceptible to someone fraudulently transferring them to his name. Thus, to avoid such fraudulent transfers, the fund manager makes thorough scrutinization of all the applications before initiating the transfer of the quantity. Due to this thorough verification, the procedure becomes time-consuming and it becomes hard for the members to urge their shares back from IEPF. Therefore, Ultratech Cement recommends its shareholders to take the dividends from the corporate on time as it takes less time and is a simple process. To get the dividends, the shareholders need to apply to the Registrar or the agency of the corporate at the above-mentioned address. However, if your shares are already transferred to the IEPF, then you’ll approach the Nodal Officer, Ms. Swati Patil, or the Deputy Nodal Officer of the corporate, appointed for this regard. To contact the Nodal/ Deputy Nodal Officer of Ultratech Cement, write an email to them on their official id iepf.utcl@adityabirla.com.

The Necessity of Legal Help for Ultratech Claim?

As stated above, the procedure to apply for the refund of unclaimed dividends or lost shares from the IEPF Authority may be a difficult process requiring legal and financial knowledge. A particular degree of experience is also required in filing the application to the IEPF fund manager. Hiring a legal professional can assist you and save lots of time from this tedious task. Your legal advisor will take care of all the work and related formalities to file the refund application to the IEPF. If there are mistakes in the application, the IEPF authority rejects it, and therefore the claimant has got to repeat the entire procedure. Your advisor will ensure that there are no mistakes in your application so that the authority approves it without objections. From contacting the nodal officer to gathering information for filing the application with the authority, the lawyer will do everything.

Hiring a lawyer could be extremely helpful if your shares are stuck in a complex family dispute. As mentioned, sometimes, the shareholder dies with no nominees for their shares, and he also forgets to place shares in his will. In such a case, all the relatives of the deceased could come to lay their right to the deceased’s property, i.e., Ultratech Cement Shares. Not hiring a legal advisor can cost you a fortune that you simply are entitled to. Why will people leave shares worth crores? These disputes can take an extended period of your time before getting settled. And if you’re without a lawyer, then the opposite party will walk all over you and you might end up with nothing but pennies. A legal professional or a legal firm will represent you in such cases associated with the ownership of the shares. A lawyer with the command of the law can protect you from all the loopholes which could go against you and thus, can get you the perfect settlement.

To Conclude…

Ultratech Cement is one of the largest and diverse construction material manufacturing companies with constant growth. Even this year, when everyone was struggling to cope up with the pandemic, the stock prices of this company managed to retain their value per share during the lockdown. Due to this ever-increasing pace, the price of 1 share of Ultratech Cement is now floating at 6208 Rs. per share. Therefore, it could be the most appropriate time to sell some of these shares to secure a good profit. It might even help in coping with the financial difficulties, if any, that came due to the economic disruptions caused by the pandemic. So, if you just came to know about the existence of such shares in your name, which was left to you by your deceased elderly, then waste no time in claiming them from the IEPF fund manager.

In addition to the shares, one also receives the dividend accumulated over time. We would advise you to check out the links mentioned above and check out the related section of the company’s website to know the status of unclaimed shares. Gather information regarding your dividends accumulated so far, along with your shareholding in the company, and file an application to claim your dividend from Ultratech Cement. You will have to apply to the Nodal Officer of the Company, by contacting them on the email id provided in the previous sections. For further assistance, hire a legal expert ASAP and apply to the IEPF Authority for the refund of the unclaimed dividend and the recovery of the transferred shares.

The post Recovery of Unclaimed Dividends and Lost Shares of Ultratech Cement from IEPF appeared first on MUDS.

Now, what does it indicate? It shows that if somehow you can find any proof of investment in Eicher Motors from the early 90s, then you can raise a claim on the unclaimed dividend of Eicher Motors share and get the amount which will be huge compared to the invested amount. Finding lost shares like these is like finding hidden treasures. The obvious question is how to claim these funds and is it easy to raise a claim on such funds. Before we answer such questions, let us understand how Eicher Motors has managed to provide such growth to its investors and why is it logical to find unclaimed dividends of this company. 

Financial History of the Company

Eicher Motors Ltd. was incorporated in 1982. It is a Large Cap company with a market cap of Rs 69254.03 Crore and operates in the auto manufacturing sector on India. It is the manufacturer of iconic Royal Enfield Motorcycles. It also manufactures other vehicles and auto spare parts. The company went public in 1982 and got listed on the Stock Exchange. The company performed tremendously so much so that its per-share price reached more than ₹ 2536.70 in November 2020. Due to this high value, it had become difficult for retail shareholders to invest in the company. Therefore, on August 11 2020, the company announced the splitting of its stock into 10 shares. Thus, each equity share worth ₹ 10 was worth 10 shares of Rs. 1 each. Even during the Covid-19 Pandemic, the company has managed to stay in the game and kept its growth momentum. The shares of the company have grown manifolds over the years with an average annual growth rate of 32%. Let us see how it has grown over the years with the following calculation.

Calculation

• Suppose your father has bought 5000 shares of Eicher Motors in 1996.
• In 1996, the company shares had a valuation of Rs. 2.32.
• So the net amount invested by your father is Rs. 11600.
• 24 years down the line, the worth of those 5000 shares as per today’s closing rate of Rs. 2515 will be nearly Rs. 1,25,75,000.
• Source: https://in.finance.yahoo.com/quote/EICHERMOT.NS/history?period1=849139200&period2=1606521600&interval=1d&filter=history&frequency=1d&includeAdjustedClose=true
• The company due to an extreme rise in its share price split up its stock in the ratio of 1:10.

[By splitting the stocks, the company increases the number of shares in the market while decreasing its price by the same proportion. In this way, there is no change in the net value of the market capitalization, and it becomes easy for retail investors to invest in the company.]

Now, imagine if you find that your grandfather had in fact invested those Rs. 11660 in 1996 and then forgot to take notice of this investment. Over the years this investment and the dividend remained unclaimed and later in the years, your grandfather passed away without naming an heir to these shares. If you find these shares today and lay claim on the unclaimed dividend, then you can become a Millionaire in no time! 

Now the issue is that you are not in the possession of these shares of Eicher Motors Ltd., though you know that as a grandson, you are the rightful owner of the same. As per the Government’s rule, these shares are now treated as unclaimed shares as no one has claimed dividends for seven years or more. Since the dividend remained unclaimed, the shares are now in the possession of the Government of India under the Investor Education and Protection Fund (“IEPF”). It was introduced in 2016 by the Government to resolve the issue of such ‘lost or forgotten shares.’ Earlier such unclaimed shares were transferred to the public fund of government for utilisation in public welfare schemes. but later when there were too many people coming out after years to lay claim on the shares, then the Government decided to make a fund to keep such lost or unclaimed shares secure. It also introduced an online procedure for anyone who wants to lay claim to their lost shares. Let’s understand more about the IEPF and recovery of lost shares in the following sections. 

As per the data given below, the company’s paid dividend has grown by 1250% since 2001. If you calculate, it is an extraordinary level of growth on any standard. 

Source: https://www.eicher.in/dividend-history

What is Investor Education and Protection Fund?

As stated above, IEPF was introduced by the Government to take care of the unclaimed dividend and unclaimed shares on behalf of the rightful shareholders. People usually forget that they own shares in a company which is the reason why the dividends on such shares remain unclaimed for years. The reason to forget about the existence of the shares can be any of the following:

• Investors tend to forget to appoint a nominee for their shares. After their death, their heirs remain clueless about their ownership of such shares, and the shares remain deserted.
• The amount of investment is too small to remember.
• Shares become a part of the property dispute and remain without ownerless till the verdict of the court.

There could be some other reasons also that could lead to investors forgetting about the shares. Due to this, many companies have shares that lie with them without any sign of ownership. IEPF is a medium that allows the public to claim their dividends and ask to refund their long-forgotten shares. They can claim their dividends and shares by applying to the managing authority of the fund manager. Due to the establishment of IEPF, people do not need to approach separate companies to procure their dividends and shares.

Regulating Laws of IEPF

Companies Act, 2013 and Investor Education, and Protection Fund Authority (Accounting, Audit, Transfer, and Refund) Rules, 2016 govern the functioning of the IEPF. These laws state that after a company declares its dividend, the shareholders get 30 days to claim the dividend. If the shareholders fail to claim, then the company is forced to transfer such unclaimed dividend of Eicher Motors to a special account, opened in the name of the company, called ‘Unpaid Dividend Account’.

The company, within 90 days of transferring the amount to the ‘Unpaid Dividend Account’, must publish a list of all the shareholders along with their unclaimed dividend on their website. After that, a shareholder must file an application to the company for the payment of the unclaimed dividend. If the dividends remain unclaimed for a consecutive period of 7 years, then the company is obliged to transfer the unclaimed dividend to the IEPF. Once the 7-year time period gets over, the shares also get transferred to the IEPF, along with the dividend amount.

What happens to the shares and the dividend transferred to the IEPF? Will you lose all your dividend income along with your shares?

A shareholder, before the introduction of IEPF, used to lose his rights over the dividend amount and the shares once they were transferred to the Government funds. But now, with the introduction of IEPF, a shareholder does not lose his/ her right over the dividend and the shares. However, companies still urge their shareholders to claim their dividends before the shares go into IEPF. The reason behind this is that the procedure of claiming the refund of dividend and the shares from IEPF is very time-consuming. IEPF takes a longer time to refund the amount and shares to the rightful owner because it wants to be 100% sure that the dividend and shares are given to the rightful owners only. Due to this, they carefully scrutinize the applications before giving their approval of the transfer. 

Procedure of IEPF to Claim Unclaimed Dividend of Eicher Motors in Simple Steps

Step 1: Claimant to Authority

A claimant has to apply to MCA through IEPF Form-5 with details of their particulars, company, and shares to be claimed. 

Step 2. Claimant to Company

After filling the online refund form, the claimant should send it to the Nodal Officer of the concerned company with attachments like indemnity bond, original receipts and certificates related to matures deposit or debentures, etc. these will help in verification of claim with the company. 

Step 3. From Company to Authority

A company has to create a claim verification report within 15 days of receiving the claim form along with documents and send it to the authority in the prescribed format of the authority. 

Step 4. Grant of Claim by Authority

The authority will grant the claim to the claimant after verification of all documents and the form sent by the company. 

If the claimant has claimed shares, then the sanctioning authority will order a refund to be paid to the Demat account of the claimant. If there is any amount, then it will be transferred to the bank account of the claimant. Normally, the authority disposes of claims within 60 days of receiving the verification report from the company.

Why do You Need Legal Help?

The procedure to file an application for the refund of an unclaimed dividend of Eicher Motors and lost shares to the IEPF Authority is a tricky and tedious task. Hiring a legal expert will ease out your process of filing the application. The application filing requires a certain degree of technical knowledge. The legal expert will ensure that the application contains no mistakes and thus, avoids the chances of it getting rejected. He will do all the tasks; from collecting the information from the company about the dividend and shares to filing the said application.

The legal expert can also help you to get your shares that are involved in a family dispute. As stated above, when a shareholder dies without appointing a nominee for its shares or does not draft a will as to what will happen to its shares after his death, then all the relatives of the deceased shareholder come to claim their share in the deceased’s property, a.k.a., shares in this case. I mean who will leave the shares of Eicher Motors Ltd. No family member of a deceased person will want to let go of the shares that were bought by him in the 90s. Due to these reasons, a claimant requires the help of a legal professional or a legal firm to manage all such disputes related to ownership of the shares. A legal expert knows all the laws and nitty-gritty around the loopholes regarding the partition of the family assets, therefore, he can provide you with the best deal possible.

Conclusion…

As we have seen, Eicher Motors’s value of the shares has increased manifold. Thus, if you just came to know about the existence of such shares in your name, then it is the best time to redeem them, along with the dividend accumulated over time. Getting a sum in excess of a crore is nothing less than winning a lottery. It is advised that you check the data on the company’s website to find the expiry date by which you can claim the unclaimed dividend of Eicher Motors Ltd Shares. If your shares are not transferred to the IEPF, then apply for the dividend claim to the Nodal/ Deputy Nodal Officer of the Company. However, if your dividend amount and shares are already transferred to the IEPF, then find a legal expert as soon as possible, and apply to the IEPF Authority for the refund of the unclaimed dividend of Eicher Motors and the recovery of the transferred shares. Hiring a legal expert will also help you to fight for the shares stuck in a legal dispute. These firms can also guide you through the complete process and make your job of share recovery easy.

The post Recover Unclaimed Dividend of Eicher Motors from IEPF Can Make You a Crorepati Overnight! appeared first on MUDS.

How would you feel if you find ₹ 1,000 in your jeans that you forgot about? Happy, right?

Now imagine if you find 1,000 shares of TCS bought during its IPO. Congratulations! You have hit a jackpot of 1 Crore Rupees.

How Did This Happen?

Tata Consultancy Service Ltd. (“TCS”) is India’s No. 1 multinational company specializing in Information Technology (“IT”) and Consultancy Services. It has expanded manifolds since its establishment. In April 2018, it became the first IT company to cross the milestone of $100 Billion in terms of market capitalization. TCS became the second Indian company to reach this milestone after Reliance Industries Ltd. (“RIL”). TCS has been consistent in its over-arching performance. Even in the times of Covid-19, it did not fail to impress with its numbers. In March 2020, TCS, again became the most valued Indian firm with the market capitalization of ₹ 6,82,408.68 crores, beating RIL by ₹ 6,959.73 crores. In September this year, it became the first IT company and the second Indian company after Reliance Industries Limited to reach the milestone of ₹ 9 trillion in terms of market capitalization. In October, it became the world’s most valuable IT company surpassing Accenture.

When everyone was recovering from the setback of COVID-19 pandemic, it continued to generate profit and dividends for its investors. For the first two quarters of the year 2020-21, the shares of TCS provided an aggregated dividend of ₹17 per share to its shareholders. So, if you or your deceased relative had bought 1,000 shares in 2004, i.e., during its IPO, then you could have received a dividend of ₹ 68,000 in the first two quarters of this year alone.

Now, you must be wondering, that how come a dividend of ₹ 17 per share for 1,000 shares yielded an income of ₹ 68,000. It should have yielded an income of only ₹ 17,000. The following calculation will clear your confusion and help you to understand how the 1,000 shares bought in 2004 are worth more than ₹ 1Crore today.

Calculation

• Suppose you bought 1,000 shares of TCS in 2004.
• On 28^th July 2006, the company issued bonus shares in the ratio of 1:1.

[Bonus Shares are the shares issued by the company to its shareholders as fully paid up shares without any cost. In simpler words, these shares are a gift from the company to its shareholders].

Issuing bonus shares at a 1:1 ratio means, that for every share owned by a shareholder, the company will issue another share in his name. This means that if you had 1,000 shares, it has now become 2,000 shares.

• On 16^th June 2009, the company again issued the bonus shares in the ratio of 1:1. This means that your 2,000 shares have become 4,000 shares.
• Since,

Dividend Received x No. of Shares = Total Dividend

Therefore,

₹ 17 x 4,000 shares = ₹ 68,000

• Now, the price of 1 TCS share, as of 17^th November 2020, is ₹ 2,673. Thus, the value of your shares as of date is,

₹ 2,673 x 4,000 shares = ₹ 1,06,92,000 (One Crore Six Lakhs Ninety-Two Thousand)

• The above amount is only the price of the shares. We have not calculated the dividends that you have received so far.
• TCS is known for paying its investors handsomely. Till date, the company has paid an aggregate dividend of ₹ 518.5 per share.

Now you can calculate your dividends accordingly.

So, if you had invested in 1,000 shares of TCS in 2004, then you would have become a Crorepati today. Now the real issue is, you know that you are the rightful owner of the TCS shares, but you are not in the possession of the same because they are held by the Government of India. This happens because of the Government’s rule that if a dividend remains unclaimed for seven years or more, then it has to be transferred to the Investor Education and Protection Fund (“IEPF”). The government introduced the concept of IEPF in 2016 to address the issue of such ‘forgotten shares’.

Investor Education and Protection Fund

You might find it hard to believe but it is very common for people to forget about their shareholdings in companies. There could be many reasons for the same, such as:

• Sometimes, an individual invests a very small amount in a company and forgets about it.
• Sometimes, people buy shares in a company without assigning a nominee. When they die, the shares remain unclaimed as the heirs of the deceased do not even know about the existence of such shares.
• Sometimes, the heirs of the deceased person do know about the shares. But due to a family dispute regarding the share in the property, the company’s shares become part of the dispute, and hence, remain unclaimed.

There could also be some other reasons that could lead to investors forgetting about them. Due to this, in almost every company they have these dormant shares without anyone showing ownership.

Earlier, the companies were obligated to transfer such unclaimed dividends to the government funds. The government would use such funds under various public policies for welfare schemes and developmental works. However, when the government saw that later, people are coming to claim their dividends, it decided to set up IEPF. It acts as a platform, where people can approach and claim their shares in various companies by filing an application. It acts as a one-stop solution, as people do not have to go to different companies one by one to claim their shares and dividends earned on the said shares. In order to claim the recovery of shares and to claim the refund of the unclaimed dividends from the IEPF, an individual has to apply for the same to the managing authority of the fund manager.

Provisions Governing IEPF

IEPF is governed by the Companies Act, 2013 and Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016. Under these laws, once a company declares the dividend, then it has to be claimed by the shareholder within 30 days of such declaration. If the dividend remains unclaimed, then the company shall transfer such unclaimed dividend to a special account, opened by the company, called ‘Unpaid Dividend Account’.

After transferring the amount to the ‘Unpaid Dividend Account’, the company, within 90 days, has to publish a list of all the shareholders along with their unclaimed dividend on their website. After that, if a person wants to claim the dividend, then he has to apply to the company for the payment of the unclaimed dividend.

If a person fails to claim the dividend for a consecutive period of 7 years, then the company is obliged to transfer the unclaimed dividend to the IEPF. Along with the amount, the company is also obliged to transfer such shares in the name of the IEPF.

Note: The shares transferred in the name of the IEPF are the shares on which the dividend has been declared by the company, but the shareholder has failed to claim the same for a consecutive period of 7 years.

Unclaimed Dividend & Unclaimed Shares of TCS

From the Annual Reports of a company, we can see the transfer status of the unclaimed dividend and unclaimed shares to the IEPF.

Funds & Shares transferred to the IEPF

According to the Annual Report 2019-2020 of the company, TCS has transferred the following unpaid dividend and unclaimed shares to the IEPF during the Financial Year of 2020:

Source: https://www.tcs.com/content/dam/tcs/investor-relations/financial-statements/2019-20/ar/annual-report-2019-2020.pdf

The company in the previous financial year has transferred Two Crores Forty-Six Lakhs Seventy Thousand Rupees (₹ 2,46,70,000/-) of the unclaimed dividend, along with Fifty-Four Thousand Seven Hundred Eighty-Six (54,786) shares in the IEPF. From the above table, it can be deduced that the company has a huge chunk of unclaimed dividends and unclaimed shares in the IEPF. The shareholders must look into their investment history to look for such unclaimed shares and claim their dividends from IEPF.

Funds & Shares to be transferred to the IEPF

The Annual Report 2019-2020 also provides the outstanding unclaimed dividend and the dates by which an investor can approach the Company’s Registrar or the Transfer Agent to claim the funds. After the expiry of the stated dates, TCS will be forced to transfer such dividends, along with the shares, to the IEPF.

The following tables provide the information regarding the date of declaration of dividends and the last date by which the shareholders can claim the dividends.

1. For shareholders of Tata Consultancy Service Limited (TCS):

The above table provides the deadlines for the shareholders of the TCS, to claim their dividends by applying to the Company’s Registrar or the Transfer Agent. After the due dates, provided in the 3^rd column, TCS will be forced to transfer the funds to the IEPF, along with the respective shares.

• For shareholders of erstwhile TCS e-Service Ltd. which has merged with the company:

TCS e-Service Ltd. was merged with TCS Ltd. The shares of such shareholders are treated differently. Therefore, the above table provides the deadlines for the shareholders of the erstwhile TCS e-Service Ltd., to claim their dividends by applying to the Company’s Registrar or the Transfer Agent. After the due date, provided in the 3^rd column, TCS will be forced to transfer the funds to the IEPF, along with the respective shares.

• For shareholders of erstwhile CMC Ltd. which has merged with the company:

CMC Ltd. was merged with TCS Ltd. The shares of such shareholders are treated differently. Therefore, the above table provides the deadlines for the shareholders of the erstwhile CMC Ltd., to claim their dividends by applying to the Company’s Registrar or the Transfer Agent. After the due dates, provided in the 3^rd column, TCS will be forced to transfer the funds to the IEPF, along with the respective shares.

An investor can check the status of their unclaimed dividend, declared by TCS, from https://www.tcs.com/unclaimed-dividend-details-from-february-10-2014-to-january-31-2020

For more information, visit https://www.tcs.com/content/dam/tcs/investor-relations/financial-statements/2019-20/ar/annual-report-2019-2020.pdf

Unclaimed Shares & Lost Dividend under IEPF

If the shares are not claimed within the 7 years, does it mean you will lose all your dividend income along with your shares?

As stated above, earlier, it used to happen that the government would utilize such funds for the public welfare, and the investor loses the rights over such income as well as shares. Therefore, the companies used to advise the investors to claim their dividend to prevent the loss of the dividend income and the shares. But now, with the introduction of IEPF, an investor does not lose his/ her right over the dividend and the shares. Then what is the reason for the companies advising you to claim dividends before the shares go into IEPF?

The reason why the companies still advise the investors to claim their dividend from the company by applying to the Company’s Registrar or the Transfer Agent, rather than claiming the refund of shares and the dividend amount from the IEPF, is that the process of claiming the refund of dividend and the shares from IEPF is tedious and cumbersome. IEPF takes time to refund the money and the shares to the rightful owner. The reason this is that the authority wants to ensure that the shares are transferred to the rightful owner. Thus, the claim applications go through heavy scrutiny before approval from IEPF authority.

Procedure to Claim Dividend and TCS Shares from IEPF Authority

TCS shareholders, whose shares and the unclaimed dividend has been transferred to the IEPF for they did not claim their dividend for the consecutive period of 7 years, as provided under Section 124 of the Companies Act, 2013 read with the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016, can claim their shares or unclaimed dividend amount from IEPF Authority.

Step 1: Contact TSR Darashaw Ltd.

The shareholder has to contact TSR Darashaw Ltd., which is the Company Registrar/ Transfer Agent of TCS. The shareholder has to obtain all the information like the year wise dividend entitlement, and all the shares transferred to the IEPF Authority.

Step 2: Download IEPF 5

The shareholder then has to visit the website of the IEPF Authority, http://www.iepf.gov.in/IEPF/refund.html, and download the Form IEPF 5. Then he has to fill in the form and upload it back on the website. This will be the online application filed by the shareholder.

Note: An individual can file one form in one financial year. However, he can make multiple claims in a single form. Thus, remember to put all the claims in one form.

Step 3: Physical Application

The shareholder then has to take a printout of the online form and send it to the Nodal Officer at the Registered Office of TCS, Mumbai. The application should be sent along with the required documents, which are self-attested (including the witnesses).

The required documents need to be attached are:

• Original Indemnity Bond: Duly signed by the claimant, joint holder, and two witnesses:
  • Amount less than 10,000: On a plain paper
  • Amount more than 10,000: On a non-judicial stamp paper of the value prescribed under the Stamp Act.
• Original Advance Stamp Receipt: Duly signed by the claimant, joint holder, and two witnesses.
• Proof of Entitlement
• Copy of Client Master List
• Copy of Aadhar Card
• Copy of PAN Card
• Copy of Passport, in case of NRIs
• Original Cancelled Cheque Leaf
• In case any joint holder is deceased, a notarized copy of the death certificate to be attached
• Other optional documents, (if any)

Note: All the above documents are required to be self-attested by the claimant and the joint holder (if any).

Step 4: Verification by TCS

TCS will then verify the details of the application, along with the claim and the various documents attached. It will then make a Verification Report and file it, along with the original documents and physical application filed by the claimant, with the IEPF Authority.

Step 5: Comment by the IEPF Authority

The IEPF Authority, based on the application, documents attached, and the report submitted, will give its decision. It can do either of the three things:

• Approve the claim and initiate the refund.
• Ask the shareholder to resubmit the required documents, in case of any discrepancy or any document not being legible
• Reject the claim

Step 6: What to do next?

• If the IEPF Authority asks the shareholder to resubmit the documents, then the shareholder has to send the said documents to the Nodal Officer at the Registered Office of TCS, Mumbai. The Nodal Officer will then forward the documents to the IEPF Authority.
• If the IEPF Authority rejects the claim, then the shareholder will have to repeat all the steps from starting and keep in mind the mistakes he had made while filing the first application.

For more information, visit https://www.tcs.com/content/dam/tcs/pdf/discover-tcs/investor-relations/faq/steps-to-claim-dividend-shares-iepf.pdf

Why do You Need Legal Help?

As seen above, filing an application for the refund of unclaimed dividends and lost shares to the IEPF Authority could be a tricky and tedious task. To ease out the process and ensure that there is no mistake in the application, one requires the help of a legal professional. Filing the application requires a certain degree of technical knowledge. Hiring a legal professional will suit you the best as he will do all the tasks; from collecting the information from the company about the dividend and shares to filing the said application.

If the shares are involved in the family dispute, then you definitely require legal help. Shares get involved in the family dispute when a shareholder, as stated above, dies without assigning a nominee or does not include the shares in his will. Now, every one of his kin would want a right over such shares, especially when the value of those shares is huge. No family member of a deceased person will want to let go of the shares of TCS that were bought by him in 2004. Therefore, a claimant needs to hire a legal professional or approach a legal firm to manage all the disputes related to ownership of the shares. A lawyer knows all the laws regarding the partition of the family assets, and he can provide you with the best deal.

To Conclude….

So, we have seen how the shares of TCS have increased in value over the period. If you just came to know that some TCS shares exist in your name, then it is the best time to redeem them, along with the dividend accumulated over time. Who knows, maybe you will become the next millionaire. It is also advised that you go through the tables provided above and find the expiry date by which you can claim the dividend. After identifying the date, apply for the dividend claim as soon as possible with the Company Registrar/ Transfer Agent, i.e., TSR Darashaw Ltd. Thus, avoiding the shares to be transferred to the IEPF. However, if your shares are already transferred to the IEPF, find a legal expert as soon as possible, and apply to the IEPF Authority for the refund of the unclaimed dividend and the recovery of the transferred shares.

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In the business world, there is a parcel of issues for the Startups while they simply begin the new business and their new customers are not paid the sum for the pending solicitations. Notwithstanding the client-side, there is a parcel of the organizations which are not giving the best possible administrations after the installment. So today we are discussing the law and guidelines which gives you right with respect to How to Recover Money From Debtors in India.

Regardless of whether your a few companions take the advance from you and not reimbursed on time at that point figure out how to recoup cash from a companion or customers or clients or some other individual in India. Whenever cash is loaned it is done as such with the desire that it will be returned back. The scariest thing about loaning cash to your friends and family and outside the work environment individuals is the possibility of getting back that cash. Pending levy getting to be stirred up in dull gaps, the fundamental man can scarcely brag such resources. Anyway, if you are set up to battle it out, there are various acquirements in the law to safeguard you out.

There are a number of ways where an individual can look for legitimate activity against the transgressor considering the idea of activity which means the issue can be of common nature, it very well may be of a criminal nature or there can be an out of court settlement also if gatherings concurred for the equivalent. Cures additionally vary as per the idea of the issue, cures of common issue contrasts from cures accessible for a criminal issue.

So as to comprehend these various issues let us talk about various cures accessible under law.

Cures Available Under Civil Law

The most notable and normal answer for recouping cash is Order 37 of the Civil Procedure Code, which allows a bank/loan boss to document a rundown suit. Appeared differently in relation to ordinary suits, outline suits are disposed of speedier. When the suit is set up and the request is issued, the respondent has 10 days to appear, neglecting to show up in the court implies the court acknowledges the offended party’s charges to be legitimate and, as necessities be, grants the offended party. If the respondent appears, the court recognizes or acknowledges his protection just in case it is influenced that it is significant to the case being alluded to. Where the issue concerns disciplines or whatever other uncertain entirety, one can’t record a rundown suit.

Another option is the Negotiable Instruments Act, 1881, which manages the recovery of cash rising up out of instruments, for instance, bills of exchange or checks. The Act contains a couple of areas, each delineating the technique for recuperating cash under a specific instrument. For a case, Section 138 clarifies the strategy/method to manage a bobbed check, whereby a legitimate notice is to be sent to the defaulter within 30 days of getting the check return take note. If the check underwriter fails to make another installment within 30 days of tolerating the notice, the payee has the privilege to record a criminal protest under this Section. All things considered, the grumbling should be enlisted in a judge’s court inside a month of the expiry of the notice time frame, by and large, your suit will be time-banned. On the occasion that found obligated, the defaulter can be rebuffed with a prison term of two years and additionally a fine, which can be as high as twofold the checksum.

Cures Available Under Criminal Law

You also have the option of beginning criminal techniques against the defaulter under the Indian Penal Code, 1860. You can either record an occasion of criminal break of trust or duping, or even under wickedness. “In any case, a criminal methodology when in doubt takes a long time to wrap up. So you may end up wasting important time and effort in court to recoup your sum.

Out of Court Alternatives

One of the fastest and most efficient strategies for recouping cash is to pick an out-of-court repayment, for instance, intervention, assertion or placation gave that the other party is moreover anxious to settle along these lines. In case the issue has alluded to a mediator, the last hears both the gatherings and passes an honor definitive on both. The honor must be progressed on three grounds. One, in case it is invalid, two, if the respondent isn’t given tasteful time to exhibit the case, and three, if he was not educated about the arrangement of the judge. In reality, if a recommendation by an entombs pastoral gathering set up a year back to examine approach and definitive changes to deal with the immense number of pending cases is recognized, at that point, the instances of shamed checks must be picked simply through intercession or mediation, mollification/assuagement or settlement by Lok adalats.

Consequently so as to abridge every one of the segments for clear comprehension here’s given the basic understanding which is:

• Request 37 of the Civil Procedure Code covers outline suits.
• Area 406 spreads criminal break of trust under the Indian Penal Code.
• Area 417 handles swindling under the IPC.
• Area 420 spreads discipline for swindling and deceptively prompting conveyance of property under the IPC.
• Area 426 spreads discipline for evil under IPC.

In the previous sections, we introduced our readers to various ways through which pending debts can be recovered from defaulters. If someone is looking to recover money from debtors through legal means, then collaborating with a legal firm specializing in bad debt recovery is the ideal way. The firms with expertise in the recovery of money through legal means will make the job easier for the creditor by trying the most appropriate method as per their transaction history with the debtor. In turn, they ask for a nominal commission as a percentage of the money recovered. This amount is nothing compared to the money they can recover for the creditor.

Criminal Complaints of a Civil Nature Rejected:

If a person files a case in a criminal court although the case was initially filed in a civil court, the judge will dismiss the case. Because this is a civil action rather than a criminal one, the court will instruct the party to file a civil complaint in civil court. When attempting to recover money from a borrower, the moneylender may file a civil suit in a criminal court. If the court determines that the case before them is a civil suit rather than a criminal case, they direct the party to file a civil suit in the civil court because the case is of a civil nature, and the court quashes the case presented before them.

The Consumer Forum:

Consumer Forum deals with instances when there is a flaw in the products and a deficit in the services, and it does not deal with cases where there is no defect in the goods and no deficiency in the services, and it is not maintainable under the Consumer Protection Act. Consumer Forum does not deal with money recovery, but if the money recovery is connected to the sale of faulty goods or a deficit in services, Consumer Forum can handle these sorts of situations.

Analyzing a Case:

“Kanpur Vidyut Supply Company versus Ram Kishun Verma & Anr. on 7 January 2015 National Consumer Disputes Redressal” 

The complainant acquired an electrical connection for domestic usage while dwelling in Type-III House No.83 in Kendranchal Colony, Gulmohar Vihar, Kanpur. He claims to have left the residence on August 19, 1994. On August 16, 1994, he severed the electrical connection. According to the complaint, following the aforementioned disconnection, he paid the last bill dated 27-08-1994 in the amount of Rs.234.97/-.

Following that, the complaint moved into a Type IV quarter in the same community. Despite the termination of the electricity, the complainant claims that his security deposit of Rs.720/- was not paid to him. The petitioners sent the complainant a bill for Rs.1,35,245/-. He was summoned from his home and placed in civil detention. Before being freed from the civil prison from 7:30 a.m. to 4:30 p.m. on 15-07-2003, he deposited an amount of Rs.50,000/- along with connection costs of Rs.5,000/-.

The complaint subsequently contacted the relevant District Forum, requesting a return of the security deposit plus interest, as well as a reimbursement of the money seized from him when he was imprisoned in civil jail. In addition, he requested reimbursement from the petitioners.”

In light of the facts and circumstances of the case, the aforementioned directive cannot be deemed unreasonable. Obviously, the petitioners must make up for the money they previously recovered from the complaint while he was imprisoned in civil jail. As a result, we find no flaws or illegalities in the contested order. The revision petition is without merit and is thus dismissed.”

Conclusion: The preceding section discusses the moneylender’s recovery of funds from the borrower. Every day, new situations involving the recovery of money emerge. The above study outlines all of the measures that a moneylender can use to take action against the borrower. If a person encounters these sorts of issues, they should first call a lawyer and talk with him about the case in order to recover the cash. For further information, please leave a comment below or contact us here.

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There are many of us who are in dire need of help in reclaiming those shares, debentures, dividends, mutual funds, deposits, etc. that never reached us. As we have either lost, misplaced, or forgotten about their certificates & details, many of us often find ourselves questioning how to find unclaimed dividends. Earlier, all shares and certificates were issued in physical form, and often, they were lost or torn or simply the owner passed away without handing over the same to his heir(s).

Regaining such benefits is an arduous task, as we lack the knowledge of the complete process that needs to be performed for successful recovery of them.

What Is IEPF?

Have you heard about the IEPF Claim? Are you aware of what it does & how? Do you know how it helps in IEPF unclaimed shares funds recovery?

Well, for beginners, it is the abbreviation of Investor Education and Protection Fund. It is a fund that has been set up by the Ministry of Corporate Affairs (MCA) and is funded by IEPF unclaimed shares, dividends, deposits, debentures, et al.

A trust monitors the IEPF claim and utilizes money that remains unclaimed for more than 7 years. You can claim shares from iepf under this situation. After 7 years IEPF unclaimed shares dividend transfer to IEPF is done by nodal or transfer officer of the company.

Type of Funds That Are Moved To IEPF:

Stay informed that under mentioned funds are transferred to IEPF:

• IEPF Unclaimed Shares
• Unclaimed Dividends
• Unclaimed Debentures of companies &amp; the interest accrued on it.
• Unrealized Proceeds from matured deposits of companies

Can A Shareholder Reclaim Such IEPF Unclaimed Shares?

Yes, a shareholder can reclaim any such investment from IEPF as the authority maintains the details of all the accounts. The aforesaid can be done by following the prescribed procedure and on submission of duly filled form and required documents.

Process To Secure Refund Shares From IEPF or IEPF Unclaimed Dividend:

Any person, whose IEPF unclaimed shares, unclaimed dividend, matured deposits, matured debentures, application money due for refund, or interest thereon, sale proceeds of fractional shares, redemption proceeds of preference shares, etc. has been transferred to the Fund, may IEPF claim the shares under the provision to sub-section (6) of section 124 or apply for a refund under clause (a) of sub-section (3) of section 125 or under proviso to sub-section (3) of section 125, as the case may be, from the Authority. The transfer of company shares or claiming the shares from IEPF claim can be done with the help of a legal consultancy.

1. In the company, the claimant is entitled to only one consolidated claim in a financial year.
2. On the other hand, if the claimant is an administrator nominee or a legal heir, or a successor.  Then, before filing any claim with Shares from IEPF authority, he needs to ensure that the transmission process has been completed by the concerned company.

Steps for Claim Shares from IEPF

Step 1. Completion of Transmission process from Company: Prior to claiming shares it is important to complete the transmission process with the company considered after which the application may be made for claiming such shares

Step 2. Claimant to Authority: E-Form IEPF-5 needs to be downloaded from the site, duly fill in and then upload.

This form requires all details of the unclaimed investment to be filled. In addition, it also seeks the details of the claimant.

Step 3. Claimant to Company: After filing the e-form, the claimant is required to send copies of required documents by post to the Nodal Officer of the concerned company.

Step 4. Company to Authority: The company shall send a verification report to the Authority, within 15 days of receipt of the claim form.

Step 5. Authority to Claimant: After the receipt of all relevant documents, verification of the entitlement by the claimant is done. Thereafter, a refund sanction order and finally, the transfer materializes in the Demat account of the claimant.

How to Successfully Claim Shares from IEPF or IEPF Unclaimed Shares?

After reading the above procedure to claim shares from iepf transferred to IEPF, it has been clear that it is a complex process. Since the shares are really old, the fund manager of the IEPF conducts a thorough scrutinization of the claim application with documents. Thus, the chances of rejection of an application due to any small error or missing document are higher. This is where assistance from a reputed financial and legal consultancy firm could play a major role. These companies have experts who know all the nuances of filing an error-free application with all the essential documents. So, the chances of rejection are reduced, and claiming shares becomes easy. 

Who Can Apply to IEPF Authority for Recovery of Shares?

Any stakeholder whose IEPF unclaimed shares have been transferred to the IEPF may request a reimbursement from the IEPF claim Authority. A claimant, however, can only bring one consolidated claim against a corporation in a fiscal year. The data from the multiple Folios from the same firm should be included in the aggregated IEPF claim.

When the claimant is the registered shareholder’s legal heir, nominee, or successor, he or she must first confirm that the corporation completes the share transmission procedure and provides an entitlement letter before filing the IEPF claim shares from iepf with the authorities.

Many individuals buy in shares and then forget to claim them, or many of them expire before they can be claimed. In such circumstances, the money might go unclaimed for years. As a result, the MCA established the Investor Education and Protection Fund (IEPF) to ensure that IEPF  unclaimed shares are transferred to and received by the correct individual.

Claim Shares From IEPF: Unrivaled & Unsurpassable Services!

When it comes to reputation in the success rate of IEPF claims, MUDS stands second to none. With a satisfied clientele across India, experts at MUDS will give you easy-to-follow solutions for any issues related to IEPF claims. We also have experienced legal advisors who can help in claiming ownership of shares from relatives who didn’t name heirs. These kinds of shares often end up in legal disputes. Muds can help in the resolution of such disputes in a legal way. So, if you want a hassle-free solution for claim shares from iepf recovery then contact the experts at MUDS today.

FAQs 

Q: How much time does it take for an IEPF claim? 

The Authority shall dispose of any application for repayment of any IEPF claim under this regulation that has been duly confirmed by the concerned company within 60 days of receipt of the verification report from the firm.

Q: How do I check my Iepf claim status?

You may check the progress of your registered complaint with the Ministry of Corporate Affairs. You must submit your complaint SRN number, start date, and finish date to monitor your complaint.

Q: How do I go for IEPF claim shares?

Share all your share documents and information to MUDS. We will restore it for you. 

Q: Why do companies transfer shares to the IEPF claim?

The Company is obligated to transfer all shares of the Company for which dividends have remained unpaid or encashed for seven or more years in a row to the Investor Education and Protection Fund (or “IEPF”) set up by the Government of India.

“There are lots of formalities to be followed to recover the unclaimed shares from IEPF, which is a little demanding for a layman, therefore, it is better to seek professional help.”
-Shweta Gupta, Founder and CEO, MUDS

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