The SEBI circular mandates that, as of April 1st 2023, physical shareholder folios that are missing any of the data—such as a PAN, email address, mobile number, bank account details, or nomination—must be frozen.

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Claim Unclaimed Shares of Infosys Limited from IEPF Authority
Unclaimed Shares of Infoysys Limited

Information technology (IT)-enabled business solutions are defined, designed, and delivered to clients by Infosys Limited, a multinational technology services company. As of March 31, 2022, the Company was present in 247 sites throughout 54 nations. The business is a top supplier of next-generation digital services and consulting technology outsourcing that help clients develop and carry out plans for their digital transformation. 

Additionally, it offers complete business solutions that make use of technology for its clients, such as infrastructure management services and technical consultancy for design, development, product engineering, and maintenance. Additionally, it offers software solutions to the financial sector. The aim of Infosys is to act as a guide for our clients as they conceptualise, plan, and carry out their path to a digital future. Finacle, a global banking solution for large and medium-sized banks in India and abroad, was developed by the company. 

A majority owned subsidiary is Infosys BPO. Business process management services, including off-site customer relationship management, finance and accounting and administration, and sales order processing, are offered by Infosys BPO. The organization, which is based in Karnataka and is directed by Mr. N. R. Narayana Murthy, is the second-largest software exporter in India. With a $250 investment, seven persons founded the company. In 1992, the company changed its legal status to a public limited company. In 1999, The Company became the first Indian business to list on the NASDAQ. Infosys is included in the NASDAQ-100 index as well. Infosys BPO Ltd. was established in India in April 2002 to take advantage of business process management prospects. For USD 24.3 million, the company purchased 100% of Expert Information Services Pty Ltd Australia in 2004. Infosys Technologies (Australia) Pty Ltd was the new name given to the purchased business.

These purchases were made through Infy Consulting Company Ltd (an entirely owned subsidiary of Infosys Consulting Holding AG) and Infosys Nova Holdings LLC (an entirely owned subsidiary of Infosys Limited) for a total consideration of Rs. 1407 crore, which included cash consideration of Rs. Infosys Consulting Pte. Ltd., a fully-owned subsidiary of Infosys Limited, and quirky, a digital marketing and commerce firm with offices in Germany, entered into a purchase agreement on March 22, 2022, for a potential price tag of up to EUR 50 million. (around Rs. 420 crore), and to complete this deal, Infosys Consulting Pte. Ltd. bought Infosys Germany GmBH (formerly known as Kristall 247. GmBH). As of March 31, 2022, the company has 50 step-down subsidiaries in addition to its 27 direct subsidiaries.

How to claim dividends that the deceased individual was entitled to: In the event that the decedent’s legal heir wants to submit a claim for Infosys unclaimed shares. 

A dividend is a sum of money given to shareholders from a company’s profits. The dividend per share is decided upon and announced by the Board of Directors. Interim dividends are issued quarterly or semi-annually, whereas the final payout is announced at the conclusion of the fiscal year. On the designated dates, dividend payments are made. Unclaimed dividends are those that have been paid by the company but have not yet been redeemed or used by the shareholder for whatever reason.

Dividends continue to be unclaimed for a variety of reasons, including residence changes and incorrect bank account information. In this post, we’ll explain why dividends go unclaimed and how to 

Let’s Start by Figuring Out Why This Article Needed to Be Written.

According to information provided by BSE, the oldest stock exchange in India, as of August 17, 2022, up to 4060 shareholders had yet to claim their final dividend payment for FY22.

How Does the Corporation Account for the Computation of Unclaimed Dividends?

Unclaimed dividend is displayed on the balance sheet’s liabilities side. Unclaimed benefits must be paid by the firm as and when they are requested, making them a liability for the business. It is recorded as a current liability because it typically matures within a year, and when unpaid dividends are paid, the current liability is removed from the current liabilities account.

But Why Go Unclaimed Dividends?

The dividend paid out by a firm may go unclaimed for a number of reasons, including the shareholder’s death, the bank account being closed without a nominee being chosen, and another cause I’ll discuss is a name mismatch in the bank account.

IEPF Unpaid Dividends Must Be Repaid

When a corporation declares a dividend, it must pay it out within 30 days. After that, there is a grace period of seven days for the investor to collect any unclaimed dividends before the money must be transferred to a bank account the firm will create for unpaid dividends. Following this procedure, the business releases a list of shareholders together with the sum that is unclaimed.

Amounts sent to the company’s unpaid dividends account that have not been paid or claimed for more than 7 years will be transferred, together with interest that has accumulated, to the Investor Education Protection Fund (IEPF). The business then notifies the IEPF Authority of the transfer’s specifics in a statement on Form IEPF-1. The Authority will then take ownership of the money and give the firm a receipt as evidence of the transfer.

In accordance with Rule 7 of the 2016 Investor Education and Protection Fund Authority (Accounting, Audit, Transfer, and Refund) Rules, there is a comprehensive procedure for recovering such dividends from the IEPF.

 

When an Underpaid Dividend Account Has an Unclaimed Dividend, the Following Procedure Must Be Followed:

If a person believes they are entitled to the money in the unpaid dividend account, they may submit an application to the corporation to receive it. However, a request letter containing information such as the depository participant (DP) ID, client ID, and the time period for which the dividend wasn’t received must be sent to the company’s Registrar and Transfer Agent (RTA) in order to receive the unclaimed dividend from the unpaid dividend account. RTA then confirms it, and following confirmation, the claimant is given the unclaimed money.

 

How to Obtain Dividends From the IEPF Authority

According to Section 124 of the Companies Act of 2013 in conjunction with the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules of 2016, shareholders of the Company whose shares, unclaimed or unpaid dividend amount have been transferred by the Company to IEPF Authority may claim unclaimed dividend amount from IEPF Authority.

Before moving further, the shareholder must first get information on their year-by-year dividend entitlement and shares that have been transferred to the IEPF Authority from the company/registrar and transfer agent of the company, TSR Darashaw Limited.

Step 2: The shareholder must access and obtain Form IEPF-5 from the IEPF Authority’s website (http://www.iepf.gov.in/IEPF/refund.html). On the IEPF Authority website, shareholders must complete the online application and upload Form IEPF-5.

Step 3: The shareholder must print the e-form IEPF-5 and send the original application, along with any necessary supporting documentation that has been duly self-attested (including the joint holder), to the company’s registered office.

Step 4: The company will check the information on the claim and the different documents provided by the shareholder before submitting the original papers and any enclosures to the IEPF Authority along with the Verification Report.

Step 5: The IEPF Authority would: Based on the Verification Report and the documentation presented by the firm;

In the event of any difference, (i) approve the claim; ii) request the shareholder to resubmit the necessary papers.

Step 6: Shareholders must send the necessary papers to the Nodal Officer in the event that the IEPF Authority requires that they be resubmitted. After receiving the shareholder’s corrected papers, the nodal officer would send the updated Verification Report to the IEPF Authority in order to satisfy the shareholder’s claim. The shareholder must proceed with Steps 1 through 5 if the IEPF Authority rejects the application.

The legal successor of the deceased person must submit certain documents, including a notarized copy of the death certificate, a notarized succession certificate, a No Objection Certificate from another holder, and an indemnity bond for transmission, in order to claim dividends that are theirs by right.

 

When the Bank Account’s Explanation for the Unclaimed Dividend is Modified, Then:

The shareholder must update the RTA if there is a change to the bank account.

I really hope that this clarifies the unclaimed dividends procedure for you. Your feedback is always appreciated and keeps us inspired.

 

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