Have you lost track of your shares of Adani Power Limited? Have these shares been transferred to the Investor Education and Protection Fund (IEPF)? If so, don’t worry – you can recover them by filing a claim with the IEPF Authority. In this detailed guide, we will walk you through the entire process step-by-step.
What is the IEPF?
The Investor Education and Protection Fund (IEPF) is a body established by the Ministry of Corporate Affairs under Section 125 of the Companies Act, 2013. It aims to promote investor education, awareness and protection.
All companies are required to transfer dividend amounts and corresponding shares that remain unclaimed or unpaid for a period of seven consecutive years to the IEPF. The shares transferred to the IEPF are held by the IEPF Authority on behalf of the original shareholders. As an investor, you have the right to reclaim these shares by following due procedure.
Why Were My Adani Power Shares Transferred to the IEPF?
As per IEPF rules, if dividend amounts on your Adani Power shares have remained unpaid or unclaimed for seven consecutive years or more, such shares are liable to be transferred to the IEPF Authority.
The following are some common reasons why shareholders end up losing track of their Adani Power shares:
– Not updating correspondence address after buying shares
– Shares lying in physical form instead of dematerialized form
– Non-encashment of dividend checks
– Disputes relating to title of shares
– Incorrect bank details leading to refunds of dividend payments
Regardless of the specifics, you have the right to recover your shares from the IEPF Authority by filing a claim in the prescribed manner.
I Have Lost the Share Certificates – Can I Still Recover My Shares?
Yes, even if you have lost your original Adani Power share certificates, you can still recover your shares from the IEPF.
The transfer of shares to the IEPF happens on the basis of corporate records and beneficial owner details. As long as your name figures as a registered shareholder in the company’s books on the date of transfer, you can claim those shares even without the physical share certificates.
While making the claim, you will be required to indemnify the company and IEPF Authority by way of an affidavit stating that you have not sold, gifted or pledged the shares to any third-party after you lost the certificates. Once the shares are credited to your demat account, you can get duplicate share certificates issued if needed.
Documents Required to Claim Your Adani Power Shares from the IEPF
To file an application for recovering your Adani Power shares from the IEPF, you need to furnish the following documents:
1. Duly signed application form in Form IEPF-5 – This is the main application form itself containing various declarations and submission from the claimant. It needs to be signed digitally or physically as applicable.
2. Copy of Acknowledgment Slip – After uploading the duly filled IEPF-5 on the MCA portal for processing, you will receive an Acknowledgment Slip. This needs to be submitted as proof of filing your claim.
3. Indemnity Bond – You have to fill and submit an Indemnity Bond affirming that you haven’t sold, gifted or pledged the shares being claimed from the IEPF after losing them. It indemnifies the IEPF Authority and Company against any disputes arising in future.
4. Advance Stamped Receipt (ASR) – This document acknowledges the receipt of claimed shares in advance once these are credited to your demat account. The ASR has to be duly signed and stamped.
Along with the above documents, you also need to submit:
– Identity proof like Aadhaar, PAN, passport etc.
– Proof of entitlement like share certificate numbers, dividend receipt copies etc to establish your ownership.
– Bank details for receiving any unpaid dividends.
How To File Claim for Adani Power Shares on the MCA Portal
Follow these step-wise instructions to e-file your IEPF-5 form for claiming back your Adani Power shares:
Step 1) Go to the MCA Services Portal at www.mca.gov.in/mcafoportal/claimRefundMain.do
Step 2) Select Investor Category and click “Proceed”. Choose “Register Yourself as Investor/Claimant” if first time user. Existing users can log in directly.
Step 3) Acknowledge having read the instructions and upload necessary documents – IEPF-5 form, Indemnity Bond, ASR etc as applicable.
Step 4) Fill in all details in Form IEPF-5 carefully and submit the e-form with digital/e-sign as directed.
Step 5) Make payment of applicable fee online to complete form submission process.
Step 6) Claim form with documents will be processed by the IEPF Authority and sent for company verification.
Step 7) After satisfactory verification, amount will be credited directly to claimants’ bank account. For shares, they will be credited to your demat account once approved.
You will receive notifications via email and SMS about the status of your claim throughout this process after filing it online. Please ensure to check these periodically. You can also track status directly on the portal where your form will show processing progress.
How Much Time Does It Take To Get Back Adani Power Shares from the IEPF?
Once you successfully submit your claim on the MCA portal along with all documents, it generally takes 2-3 months to get your Adani Power shares back from the IEPF Authority subject to timely verification by the company. The exact turnaround time may vary depending on accuracy of documents and the due diligence process followed by the company before approving transfer of shares in your favor.
The IEPF Authority processes all claims on a first-come, first-served basis strictly as per date of filing the IEPF-5 form. Any deficiencies in supporting documents, indemnities etc are communicated online for clarifications or corrections to ensure seamless approval. Ensure that you have filed an accurate claim with complete documents for fastest approval.
Also make sure to check status updates and respond promptly to any clarification requests raised by the Authority during the approval process through your registered email ID or login credentials on MCA portal. This will help get back your shares smoothly without unnecessary delays.
Can I Claim Back the Unpaid Dividends on My Shares as well?
Yes, at the time of reclaiming your Adani Power shares from the IEPF Authority, you can also claim back any unpaid or unclaimed dividends on those shares paid during the last seven years.
The IEPF-5 form provides a schedule to separately furnish details of such dividend amounts pending for transfer in your name. Any dividends paid on the shares being claimed after their transfer to the IEPF can also be claimed through the same application form in applicable cases.
The IEPF Authority verifies details of unpaid dividends from company records before approving the amount to be credited to your bank account. You have to provide a canceled cheque leaf and bank details for this purpose in Form IEPF-5. The dividend amounts approved are paid through electronic transfer once shares are credited to your demat account.
Will My Shares Attract Capital Gains Tax When I Receive Them Back?
No, the transfer of shares from the IEPF back into your demat account does not attract any capital gains tax or other income tax liability. As per current laws, re-issue of such shares is exempt from capital gains tax so you don’t need to worry about added tax outflows when reclaiming your Adani Power shares.
You only need to pay applicable charges in the form of form fee and other service charges to submit your claim on the MCA portal and get it processed by authorities. Thereafter, the shares are seamlessly transferred back to your deem without paying any income tax, securities transaction tax (STT), stamp duty etc. This makes the entire shares recovery process much simpler for individual investors.
Can a Shareholder Recover Adani Power Shares after Expiry of 7 Years from Transfer to IEPF?
Yes, as per a recent amendment by the Ministry of Corporate Affairs, shareholders can recover their shares transferred to the IEPF even after completion of seven years from date of such transfer.
Earlier, IEPF rules only permitted claims for a period of seven years from the actual transfer date of shares by companies. However, this condition has now been relaxed allowing shareholders to recover shares transferred as far back as 1999 when the IEPF was first instituted.
Therefore, even if it has been over 7 years since your Adani Power shares were sent to IEPF account on unpaid dividend grounds, you can still file a valid claim to recover them in your name. The same set of documents and application process holds good as outlined above irrespective of time since transfer.
This rule applies to all IEPF claims for shares of any listed or unlisted companies in India for cases of unpaid dividend. Follow the procedures above diligently and recover your Adani Power shares no matter how long back they were transferred to IEPF account unknowingly.
The IEPF holds over Rs 14,000 crores of investors’ money:
The IEPF currently holds over Rs 14,000 crores of unpaid dividends and corresponding shares belonging to investors across the country. This includes shares and dividends of several well known companies transferred to the IEPF after remaining unclaimed for 7 years. As an investor, you could have funds or stocks lying with the IEPF without even realizing it.
You can recover shares for deceased relatives:
The IEPF rules allow legal heirs to recover shares of their deceased relatives as well. So even if the original investor is no more, the legal heir carrying proper documentation can file a claim with the IEPF Authority and recover rightful shares transmitted to them. This provides big relief for sorting out transmission-related disputes.
Actual shareholders often remain unaware of transfers:
In several cases, the actual beneficial shareholders are unaware that their shares have been transferred to the IEPF due to action taken by custodians or brokers without proper intimation. By increasing investor awareness, legitimate shareholders can rescue their investments worth crores from getting stuck in the IEPF.
Refunds have become faster after e-filing was introduced:
Earlier, recovering shares from the IEPF involved tedious offline application procedures taking even up to a year. Now, with the e-filing portal introduced by MCA, the entirety of application submission, tracking, communication and approval happens online in a transparent manner. This has reduced overall claim settlement time significantly.
Unclaimed dividends also gain higher interest now:
Earlier unclaimed dividends transferred to IEPF would lie idle until shareholders claimed them back. Now under IEPF rules, such unclaimed funds are invested in interest-bearing fixed deposits increasing their value over time. Investors get to claim increased funds when approved.
1. What types of shares get transferred to the IEPF?
Only the shares of dividend paying companies on which dividends have remained unpaid or unclaimed for 7 consecutive years get transferred to the IEPF authority. Unpaid/unclaimed shares of non-dividend companies do not get transferred.
2. Is there a deadline to claim back shares from IEPF?
There is no deadline for shareholders to make a claim from the date of transfer to IEPF. Even shares that were transferred as far back as 1999 when IEPF rules began can be claimed back now with proper documentation.
3. Can I recover shares as legal heir of a deceased shareholder?
Yes, a legal heir carrying a succession certificate or probate of will can recover shares standing in the demat account of a deceased shareholder after furnishing documents proving relationship with the deceased as well as death certificate.
4. Is a Power of Attorney (PoA) holder eligible to make an IEPF claim on shareholder’s behalf?
Yes, a PoA holder carrying a legally registered Power of Attorney can file an e-form IEPF-5 on behalf of the original shareholder and submit required documents to recover shares to be transferred to shareholder’s demat account.
5. Can a second name-holder in a demat account recover the full quantity of shares?
Only the first name-holder in the concerned demat account is entitled to recover the full quantity of shares transferred to IEPF. The second (or third) holder can recover only to the extent of its entitlement based on actual ownership records.
6. What happens if claimant details on shares don’t match with PAN or other identity details?
In such cases, the applicant has to additionally furnish documents connecting old identity details with present identity proof like marriage certificate (in case of change of maiden name), gazette notification for name change etc as applicable along with Form IEPF-5.
7. I do not have the share certificate for the shares transferred to the IEPF. Can I still claim them?
Yes, you can still claim the shares even without the original share certificate. While making the online claim in Form IEPF-5, you need to submit an indemnity bond stating that you have not sold, transferred or pledged the shares after you lost the share certificate. The shares will be transferred to your demat account based on the company records.
8. How do I find out if some of my shares have been transferred to the IEPF?
You can check the company website or contact their Registrar and Transfer Agent (RTA). Most companies provide information on their website about the corporate actions like dividend announcements and corresponding share transfers made to the IEPF. You can also enter your Folio No. or DP ID/Client ID on their webpage to check unpaid dividend or shares transferred status.
9. What details do I need to provide in the ASR and Indemnity Bond?
For the Advance Stamped Receipt (ASR) you need to provide your current demat account details including DP ID-Client ID signed by all demat account holders along with a revenue stamp. For Indemnity Bond, you need to furnish full details of shares being claimed, folio numbers, distinctive certificate numbers, quantity etc and indemnify the company & IEPF against any future claims or disputes on shares claimed.
10. Can I claim dividend amount along with claiming back shares?
Yes, while filling Form IEPF-5 to claim back shares, you can also furnish details of any unpaid or unclaimed dividends related to those shares which have been transferred to IEPF. The approved dividend amount will be credited to your bank account once the shares are transferred to your demat account.
11. I have lodged an IEPF claim recently. How do I track its status?
You can track the online status of your claim on the MCA portal through your login. It displays various stages like Claim in Process, Claim Under Verification etc to track real time status. You will also receive claim status updates over email and SMS linked to your application which can be monitored regularly.