Many investors in India are not aware that the dividends which are not claimed for years are not lost forever but they are transferred into a special account called Investor Education and Protection Fund (IEPF). This fund is being created by the government to protect the interest of shareholders. If dividend is unclaimed for 7 consecutive years, then not only the dividend amount but also the related shares are being transferred into IEPF. Because of this reason, huge amount of investor money is lying unclaimed in the system.
The good thing is that such amount can be tracked and claimed back, but the process is not always simple for a normal investor to understand. Still, step by step it can be explained clearly for anyone who is searching how to claim IEPF unclaimed dividend online.
Why Dividend Becomes Unclaimed
Dividend can remain unclaimed due to many reasons, which may look small but they create big problem later.
- Shareholder has changed address and dividend cheque was returned.
- Bank account details were not updated so ECS transfer failed.
- Investor forgot about small shareholding from many years ago.
- In case of death of shareholder, heirs did not know about the shares.
Because of these issues, crores of rupees of dividend have been transferred to IEPF authority.
How to Track Unclaimed Dividend
Before claiming, the dividend and shares have to be tracked. The IEPF authority has provided online facility where investor can check status.
- Visit the IEPF website (iepf.gov.in).
- Use the search option to check if your name or company details are reflecting.
- Enter company name, investor details, folio number or demat number if available.
- The system will show whether unclaimed dividend or shares related to the investor are lying with IEPF.
This step is very important because without tracking exact information, the claim cannot be filed properly.
Filing the Claim Online (Form IEPF-5)
Once dividend is confirmed to be transferred, the shareholder or legal heir has to file an application.
- Form IEPF-5 is filled online on the MCA (Ministry of Corporate Affairs) website.
- Details like name, address, Aadhaar, PAN, bank account, demat account and company information are entered.
- After filling, the form is submitted online and acknowledgement is generated.
- Print of the form has to be taken and signed.
Submission of Documents to Company
After filling IEPF-5 form online, the physical documents are sent to the company’s Nodal Officer. These include:
- Copy of IEPF-5 form and acknowledgement.
- Indemnity bond and advance stamped receipt.
- Aadhaar, PAN, cancelled cheque.
- Proof of entitlement (share certificate, transaction statement, death certificate in case of heirs).
The company verifies all papers and then forwards claim to IEPF Authority.
Approval by IEPF Authority
When the company has verified, the claim is checked at IEPF Authority. If everything is found correct, the dividend and shares are transferred back to the claimant’s bank and demat account. This process can take few months depending on completeness of documents and responses from company.
Common Challenges Faced
- Investors making mistakes in IEPF-5 form which causes rejection.
- Missing old records like share certificates or folio numbers.
- Delay by companies in verifying and forwarding the claim.
- Multiple heirs not submitting correct succession documents.
Because of these reasons, many people prefer to take help of professionals for faster recovery.
Conclusion
The problem of IEPF unclaimed dividend is becoming bigger because of lack of awareness. But the solution is there. By tracking on the IEPF website, filing IEPF-5 online, submitting documents to the company and waiting for authority approval, the rightful investor can get back both dividend and related shares.
It may look complicated, but with patience and proper documentation, the process can be completed. Every investor should remember that unclaimed dividend is not lost, it can be reclaimed, and it is always better to start the process early rather than letting wealth stay idle in government account.
Read More:
https://muds.co.in/want-to-transfer-shares-heres-how-you-do-it-right/
https://muds.co.in/how-to-avoid-your-shares-becoming-unclaimed-under-the-iepf/
https://muds.co.in/recovering-unclaimed-investments-how-the-iepf-authority-helps-shareholders/
https://muds.co.in/iepf-share-recovery-tips-tricks-and-essential-guidelines/