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Claim IEPF Unclaimed Shares of NTPC Limited from IEPF Authority
Claim Unclaimed Shares of NTPC Limited

A crucial strategy for reducing stock price volatility is diversification. The target of the game is, of course, to choose stocks that perform better than an index fund. One such business is NTPC Limited (NSE: NTPC), whose share price rose 25% in the previous year, somewhat more than the market return of around 24%. Sadly, the longer-term gains aren’t great, as the stock has dropped 0.6 percent over the past three years. 

To establish whether the success of the underlying business has matched the long-term shareholder return, it is now worthwhile to look at the Company’s fundamentals as well.

Although share prices reflect investor mood rather than merely core corporate performance, markets are a strong pricing mechanism. We may understand how investor perceptions of a firm have changed over time by examining changes in profits per share (EPS) and share price.

NTPC increased its profits per share (EPS) by 41% over the previous year. It’s fair to argue that the 25% increase in the share price lagged behind the EPS rise. Therefore, despite the growth, the NTPC market has cooled. Interesting. The rather low P/E ratio of 8.12 again demonstrates the need for prudence.

We’re glad to inform you that the CEO is remunerated more modestly than other CEOs at similarly financed organizations. Although it is always vital to monitor CEO compensation, the bigger concern is whether the firm will continue to generate growth in its profitability over time. Check out this interactive graph of NTPC’s profits, sales, and cash flow to learn more about its financial performance.

What About Dividends?

The distinction between total shareholder return (TSR) and share price return should be considered when analyzing investment returns. The TSR is a method of calculating return that considers the value of cash dividends (on the assumption that any dividend received was reinvested) and the estimated value of any deferred capital raising and spin-off transactions. Therefore, the TSR is sometimes much larger than the share price return for firms that pay significant dividends. In the instance of NTPC, the TSR during the previous year was 32%. That is greater than the return on its share price that we previously noted. This is partly due to the dividends it pays out!

A Different Perspective

It’s encouraging to note that NTPC shareholders have enjoyed a total shareholder return of 32% over the past year. The dividend is included in that. The stock’s performance has improved recently because the one-year TSR is higher than the five-year TSR, which is lower at 4% annually. In the best-case scenario, this may allude to some genuine company momentum, suggesting that this might be a fantastic time to investigate more. Looking at share price as a long-term proxy for company success intrigues me. But we also have to take into account other data to understand anything. For instance, we’ve found two red flags for NTPC, of which one is a little unpleasant! You must be aware of them before investing.

How to Claim Shares from IEPF? 

Recovery of NTPC Shares from IEPF Claim

Under its periodic amendments, Rule 7 of the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer, and Refund) Rules, 2016 reads as follows:

(1) Anyone may claim shares that have been transferred to the Fund, including shares, unclaimed dividends, matured deposits, matured debentures, application money due for reimbursement, or interest thereon, sale revenues of fractional shares, redemption proceeds of preference shares, etc.

(2) The claimant must return the completed Form IEPF-5, fully signed by him, and the necessary papers listed in Form IEPF-5 to the relevant corporation at its registered office to verify his claim.

(3) The firm must deliver the Authority a verification report in the format requested by the Authority, along with all the supporting documentation provided by the claimant, within fifteen days of the day the claim was received.

(4) Following confirmation of the claimant’s eligibility

(a) Concerning the amount claimed, the Authority and its Drawing and Disbursing Officer shall submit a bill to the Pay and Accounts Office for electronic payment under the rules.

(b) With the consent of the Competent Authority, the Authority shall, concerning the shares claimed, issue a refund sanction order and, to the extent of the claimant’s right, credit the shares to the claimant’s DEMAT account.

(5) The Authority must note all payments made under sub-rule in its records (4).

(6) The Authority must respond to any request for a refund of a claim made under this rule that the relevant Company has properly verified within sixty days of receiving the Company’s verification report. If the Authority experiences a delay of more than sixty days, the Authority must document the reason(s) for the delay and notify the claimant in writing or electronically.

(7) The Authority shall notify the claimant and the relevant Company of any deficiencies in the application in cases where the application is deficient or not approved.

(8) Before submitting any claims to the Authority, a claimant who is the registered shareholder’s lawful heir, successor, administrator, or nominee must ensure that the firm has completed the transmission procedure.

(9) The Company shall verify all necessary documents for registering the transfer or transmission. It shall issue a letter to the claimant indicating his entitlement to the said security and furnish a copy of the same to the Authority if the claimant is the legal heir, successor, administrator, or nominee of any other registered security or in cases where a request for transfer or transmission of shares is received after the transfer of shares by the Company to the Authority.

(10) The claimant can only submit one consolidated claim for a corporation every fiscal year.

(11) The Authority shall not be liable to indemnify the security holder or Company for any liability arising out of any discrepancy in the verification report submitted, etc., leading to any litigation or complaint arising from that place. Under all circumstances, the Company shall be liable to indemnify the Authority in case of any dispute or lawsuit that may be initiated due to any contradiction, inconsistency, or disparity in the verification report.

How to Claim a Dividend? Follow the Following Steps:

How to Convert a Physical Share Certificate Into Demat?

1) To receive shares that the IEPF Authority will release in their favor, claimants must open a Demat Account with one of the depository institutions. 

2) From the IEPF website (http://www.iepf.gov.in), download Form IEPF-5. Before filling out the form, review the instructions provided on the website/instruction package and the e-form.

3) Complete the form by entering the necessary information, saving it to your computer, and then upload the completed form by following the website’s instructions.

4) Upon successfully uploading the form to the MCA Portal, an acknowledgment with the SRN will be created. Please remember the SRN so you can trace the form in the future.

5) Print out the properly completed IEPF-5 and the acknowledgment sent once the form was uploaded.

6) On plain paper, prepare the following documents:

  1. a) An indemnity bond (for format and stamp duty, refer to page 8 of the instruction kit) ii) An advance stamped receipt with the claimant’s and two witnesses’ signatures (format described on page 7 of the instruction package).

7) The papers listed in points 4 and 6, as well as a copy of the acknowledgment, a self-attested copy of the electronic form, and any other documents included in the Form IEPF-5, including

  1. For Indian citizens, please provide a copy of their Aadhaar card and proof of their entitlement (original security certificates, interest warrant applications, etc.).
  2. A leaf from a canceled check;
  3. A copy of a foreign national’s passport, OCI, or PIO card.
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