Recover Shares of HERO MOTOCORP from IEPF

If you had held onto a few equities where firms had a competitive advantage and profits growth on their side, you might have made up to Rs 6 crore on a Rs 10,000 investment.

“Every business has a lifecycle. In addition to this lifespan, determining a company’s high profit-growth period and longevity is critical. Stock prices are largely a reflection of the underlying worth of the company. So, if we want to witness a multifold increase in stock prices, it is apparent that we must invest in firms while they are experiencing a multifold increase in earnings.”

“In barely 4 decades, HERO MOTOCORP has grown from a little startup to one of the world’s biggest and most acclaimed corporations,” says the company.

According to industry experts, “a thousand rupees investment in HERO MOTOCORP shares in 1984 is worth lakhs in 2021.”

What do these numbers imply to the ordinary investor? The primary thing we can conclude from this data is that if someone had an invested stock from 1984, they may become quite wealthy. This is when the necessity of share recovery becomes apparent. According to HERO MOTOCORP’s newly disclosed data, it has the highest number of unclaimed shares or unclaimed dividends among Indian firms. 

What causes this unclaimed dividend to existing?

People usually invest their money in a variety of businesses in order to decrease the chance of losing money. This appears to be beneficial to the public, but occasionally throughout the process, individuals forget about their little contributions and do not reap the benefits. For years, the purchased shares have been dormant, with no one to claim them. When older individuals acquire stock, they may fail to name an heir to the shares before they die. This might result in unclaimed dividends or shares for businesses.

IEPF unclaimed dividend: Any person whose unclaimed or underpaid money has been transferred by the firm to the IEPF authorities may collect their reimbursements.

In case of death of the shareholder, one can opt for the option of transfer of shares on death. When a shareholder dies, his right to his shares passes to whoever inherits them under his will or intestacy. The rights of the dead shareholder will be handled by his or her executors (if a will exists) or administrators of the estate if the shareholder died intestate.

Status of Unclaimed Shares of HERO MOTOCORP

HERO MOTOCORP is one of the largest companies in India and according to a recent report released by MCA, it also has the highest amount in unclaimed dividends. Even till 2015, HERO MOTOCORP had almost 60 crores recorded as unclaimed dividends from investors. They have all the data of unclaimed dividends on its website. It has also urged most of its investors to claim their dividends and get the recovery of shares or refund of shares before they is forced to transfer the amounts to IEPF. The details of unclaimed dividends of the shareholders can be checked in the following link:

https://www.herofincorp.com/sites/default/files/Statement%20of%20Unclaimed%20&%20Unpaid%20dividend__Last%207%20years.pdf

Dividend	Dividend per share(In. Rs.)	Dividend Declared
2015-16	40	2000%
2015-16	32	1600%
2016-17	55	2750%
2016-17	30	1500%
2018-19	55	2750%
2018-19	32	1600%
2019-20	65	3250%
2019-20	25	1250%
2020-21	70	3500%

Source: https://www.heromotocorp.com/en-in/dividend-details-pattern.html

Furthermore to elaborate on what will be the value of HERO MOTOCORP shares bought long ago in today’s scenario will be, let’s understand the following data,

• The market capitalization of HERO MOTOCORP has multiplied 5000- times from the year 1984 to 2021.
• Total assets increased from Rs. 48 crores to Rs. 6,425.00 Cr.

Simply holding a HERO MOTOCORP share from the 1980s would be the most lucrative investment ever. As a result, recovering HERO shares is a successful business. Spending a modest amount to get the lost shares is not a huge problem when you consider the number of earnings that will be generated in the form of unclaimed dividends. Obviously, legal assistance would be required to recover all of the lost shares. Especially in the case of an old person who died without claiming the amount and their family are demanding the money. All of the grandkids may begin to ask for a portion of the money. This is when legal assistance may come in, as they can aid to persuade the elderly to address the claim problem among family members. A legal professional can also assist you in submitting your claim with the IEPF.

If you want to avail Dematerialisation or Demat in short is the process through which an investor’s physical share certificate gets converted to an electronic format which is maintained in an account with the Depository Participant. Through this, you can get a demat of shares certificate of HERO MOTOCORP. Those people who have HERO MOTOCORP physical shares can choose the process of transfer of physical shares, liquidate them.

Making a claim through the IEPF

Previously, unclaimed profits were given to the government, which will use them for public purposes, in accordance with government policy. However, the government eventually decided to establish an unclaimed dividend fund into which businesses’ lost or unclaimed shares may be deposited. Any heirs to the funds, or anybody recalling a long-forgotten investment, might submit a report with the fund’s management authority to recover their lost money and shares. The IEPF, or Investor Education and Protection Fund, was created with this notion in mind by the Government of India.

Provisions of the Investor Education and Protection Fund

In 2017, the Ministry of Corporate Affairs released the regulations for the Investor Education and Protection Fund (IEPF). According to the rules, any money that has been in the company’s unpaid dividend account for seven years and has no claimant during that time must be transferred to the IEPF. The money must be sent to the fund together with the interest for the same time period. The transferred sum may only be claimed by a claimant after applying to IEPF. As a result, the IEPF became a one-stop-shop for investors looking to make a claim on lost shares. It simplified the procedure of seeking a refund for lost shares and gave investors the opportunity to recoup their long-lost investment.

In the scenario of lost shares, you should send the documents to the company/registrars for the issue of duplicate shares certificates accompanied by, affidavit, indemnity & surety bond and original copy of FIR of police complaint reporting a loss of share certificates and voucher copy of advertisement released in the government gazette publication regarding loss of share certificates.

Now, let’s go through how to collect lost shares or unclaimed dividends from HERO MOTO CORP shares transferred to the IEPF. The procedure described in the following section is a set of basic rules for a common investor to demand a refund of shares from the IEPF.

The Procedure for Obtaining a Refund of Lost Shares from the IEPF

Any person whose 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, or other property has been transferred to the Fund may claim the shares under the provisions of sub-section (6) of section 124 or apply for restitution.

Step 1: Claim to Authority

• A claimant must submit an IEPF Form-5 to MCA detailing their particulars, firm, and shares to be claimed.
• Particulars of the Applicant Specifics of the Shares to be Claimed
• Company Specifics
• Specifics on the amount claimed
• Aadhaar or PIO Card No. (in the case of NRI/foreigners)/Passport/OCI
• Deposits and securities are broken down by year.
• Details of the Aadhar-linked bank account (in which refund of claim to be made).

Step 2: Claim to Company

After completing the online refund form, the claimant should send it to the Nodal Officer of the concerned company along with attachments such as indemnity bond, original receipts and certificates related to matured deposits or debentures, and so on. These will aid in the company’s verification of the claim.

The following documents are required:

• Original Physical Share Certificate/bond/Debenture Certificate

•  Indemnity Bond with claimant signature

If the amount of the claim is Rs.10,000 or more, a non-judicial Stamp Paper of the value stipulated by the Stamp Act must be used.

If the amount claimed does not exceed Rs.10,000, it can be done on plain paper. In the case of a share return, on a non-judicial Stamp Paper of the amount stipulated by the Stamp Act.

• Advance Stamped Receipt (original) with the claimant’s and two witnesses’ signatures
• A copy of the claimant’s Aadhaar card
• Print off a completed claim form (IEPF-5) with the claimant’s signature.
• Copy of acknowledgment
• Cheque Cancelled
• Passport, OCI, and PIO card copies (for foreigners and NRI)

Step 3: From Corporation to Authority

Within 15 days after receiving the claim form and documentation, a firm must prepare a claim verification report and submit it to the authority in the format specified by the authority. The firm must select a nodal officer to carry out the claim verification procedure.

The Nodal Officer shall be solely liable for the actions of any officer appointed as Deputy Nodal Officer: If a company fails to appoint a Nodal Officer, each director of the company shall be deemed to be a Nodal Officer and shall be liable for any failure to comply with the requirements of these rules.

Step 4: Claim Grant by Authority

After verifying the papers and the form submitted by the firm, the authorities will award the claim to the claimant.

Verification report to the Authority

Within 30 days of receiving the claim form, the firm should provide a verification report to the Authority in the format prescribed by the Authority, along with any documentation presented by the claimant. Please note that share certificate information is of major concern. 

Along with the e-verification report, the Company should send a scanned copy of both sides of the original physical share certificate or original bond, deposit, or debenture certificate/s validly cancelled and certified:

If the claimant has claimed shares, the sanctioning authority will require a refund be sent to the claimant’s Demat account. If there is any money, it will be sent to the claimant’s bank account. Typically, the authority resolves disputes within 60 days after receiving the company’s verification report.

Time: The Authority will dispose of any application for reimbursement of any claim under this regulation that has been duly confirmed by the concerned company within 60 days of receipt of the verification report from the company.

Do Not Submit A Incomplete Application

If the verifying authority determines that the application is incomplete or that another document is necessary to complete the verification, they will send an email to the claimant indicating the deficiencies in the provided form or data, as well as any additional required papers. The claimant is then obliged to provide the refurbished papers or another set of documents within 15 days after receiving the authority’s notification email. If the documents are not presented on time, the authority may reject the claim application owing to the documents’ incompleteness. All papers requested by the verifying authority must be addressed to the company’s verifying nodal officer. Make certain that the documents are delivered to the officer within fifteen days.

As a result, we comprehended the entire procedure of obtaining unclaimed payment or profits from a firm. HERO MOTOCORP shares have skyrocketed in value during the previous few decades. As a result, if you lay claim to shares that have been lost or unclaimed for a long time, their current value will be significantly greater. This is like to discovering unanticipated wealth buried on your ancestors’ property.

However, claiming this lost money and recovering shares necessitates the submission of documentation and compliance with all of the above-mentioned conditions. The simple solution to this time-consuming procedure is to hire a legal company to handle all of the documentation and filing for you. These companies can also help you through the whole procedure, making your task of recovering shares easier. So, without further ado, if you have any inquiries or questions about the recovery of shares/transfers, locate a competent law company with specialists and seek assistance on the recovery of your unclaimed investment.