Recovering Your Shares of Tata Power Company Limited from IEPF
Tata Power Company Limited (Tata Power) is one of India’s largest integrated power companies and a pioneer in the energy sector. As a listed entity, Tata Power has lakhs of shareholders across the country.
As per Indian regulations, shares held in physical format which remain unclaimed for a period of 7 consecutive years are required to be transferred to the Investor Education and Protection Fund (IEPF) Authority. The IEPF is a statutory body established by the Ministry of Corporate Affairs to administer such unclaimed shares and dividends.
If you are a shareholder who has not accessed your physical share certificates of Tata Power for 7 years or more, it is possible the company may have transferred those shares held in your name to the IEPF. However, you can recover your shares from IEPF by following a proper claim process.
This article provides a step-by-step procedure for Tata Power shareholders to claim back their shares which may have been transferred to the IEPF:
When Can Physical Shares be Transferred to IEPF?
As per Section 124(6) of the Companies Act 2013, all shares in respect of which dividend has not been paid or claimed for seven consecutive years or more are required to be credited to the IEPF Authority.
The key instances when Tata Power has to transfer the physical share certificates of shareholders to the IEPF include:
– If dividends on the shares have remained unpaid or unclaimed by shareholders for a period of 7 consecutive years or more.
– If the shares have not been claimed or remain unencashed in physical format for 7 years or more, although dividend payment history may not be known.
– Shares held in joint names transferred to IEPF due to lack of proper joint holder endorsement on the reverse of physical certificates as per stamp duty rules.
– Shares of deceased shareholders transferred to IEPF due to absence of claimant nominations or where legal heirs have not obtained transmission.
Before transferring shares, the company sends reminders and notices informing concerned shareholders to submit their claims. Hence, Tata Power shareholders must proactively respond to such communications and diligently keep their holdings claimed and updated to avoid IEPF transfer.
Verifying Whether Your Tata Power Shares are transferred to IEPF
Shareholders staying in housing societies under management of a professional Facility Management firm can take the following steps to verify whether their Tata Power shares have been transferred to the IEPF:
– Inform your Folio Number and Share Certificate Details to the relationship manager
– The manager will check the IEPF Authority website www.iepf.gov.in for your name in the company-wise ‘Statement of Unclaimed and Unpaid Amounts’ uploaded.
– If your name appears in the statement against Tata Power, it means your shares are transferred to IEPF.
– The statement provides breakup of number of shares transferred corresponding to the share certificate details.
– The Manager informs you the findings and proceeds with next steps for claim process.
Documents Required for Claiming Shares from IEPF
To file an online application for claiming your Tata Power shares from the IEPF Authority, keep scanned copies of the below documents handy:
– Duly signed Indemnity Bond declaring you have not sold the shares
– Advance Receipt signed by claimant to acknowledge refund from IEPF
– Self-attested copy of PAN Card and Aadhaar Card (for Indians)
– Client Master List certified by Depository Participant if shares claimed in demat form
– Original Share Certificate or Letter from Tata Power mentioning the shares are transferred to IEPF
– Copy of Death Certificate and Succession Certificate (for legal heir applicants)
Steps for Filing Online Claim for Shares Transferred to IEPF
Follow these stepwise instructions to file your online claim for recovering the shares on the IEPF portal:
Step 1) Register yourself on the IEPF website www.iepf.gov.in to create login credentials.
Step 2) Login, Click on e-Forms, Select ‘Form IEPF-5’, Fill claimant’s details like name, address, email, phone number etc.
Step 3) Enter details of shares being claimed like Tata Power name, number of securities, amount, folio number and distinctive certificate numbers.
Step 4) Fill details of bank account for credit of any unclaimed dividends on shares.
Step 5) Attach all supporting documents as applicable in the Form IEPF-5 upload section.
Step 6) Submit the duly filled form on the MCA portal after payment of refund fee and verification by your authorised Manager.
Step 7) Note the acknowledgement number for tracking claim status.
The authorised Managers can provide end-to-end assistance in submission of the claim form correctly for smooth approval.
Claim Status Tracking and Receiving Shares from IEPF
To track the application status, shareholders can:
– Track acknowledgement number online under ‘View Filed Claim History’ section
– Check status which gets updated as ‘Closed’ after claim approval
– Call helpline numbers or Email IEPF Nodal officers seeking updates
– Provide any additional documents sought via email/SMS requests
On satisfactory verification of eligibility, the IEPF Authority transfers the claimed shares directly to the Demat account of the shareholder along with any unpaid dividends due. The electronic transfer approval intimation is sent from IEPF.
It is advisable to open a Demat Account if you don’t have one already before initiating any claim for quicker processing and enhancing safety of share ownership records going forward. Your Managers can guide you through the Demat opening formalities.
When do Tata Power Shares get Transferred to the IEPF?
As per the applicable Rules, shares held in physical form are required to be transferred by Tata Power to the IEPF in the following cases:
- If dividends have remained unpaid or unclaimed on the shares for 7 consecutive years or more.
- If the shares have not been claimed by shareholders or encashed for a period of 7 consecutive years, although dividend payment history on the shares may not be known.
- Shares of deceased shareholders which get transferred to IEPF due to absence of nominations or where the legal heirs have not obtained transmission of the securities in their name.
- Shares held in joint names which are transferred to IEPF due to lack of proper joint holder endorsement on the physical certificates as mandated under stamp duty rules.
Before transferring shares, Tata Power sends reminders and individual notices to shareholders intimating them to claim their shares/dividends and update records, failing which the shares shall be credited to IEPF on completion of the 7-year period. The company also publishes notices in newspapers in this regard.
Despite such initiatives taken by the company, the onus lies with each shareholder to proactively monitor holdings and ensure shares are claimed/encashed within the stipulated 7-year period. Shareholders staying in housing societies should take assistance from their Managers to track communications from Tata Power and initiate timely claims to avert IEPF transfers.
Documents required for Refund of Shares and Unclaimed Dividends from IEPF
The key documents shareholders need to furnish while filing the online claim Form IEPF-5 for recovering shares and any unpaid dividends on them are:
– Copy of original share certificate or the company letter mentioning the shares are transferred to IEPF
– Duly signed indemnity bond declaration
– Advance receipt signed by claimant towards receipt of refund from IEPF
– Self-attested copy of PAN card and Aadhaar card (for Indian claimants)
– Client Master list containing shareholder details provided by Depository Participant
– Cancelled cheque leaf showing claimant’s bank account details
– Copy of death certificate and succession certificate (for legal heir applicants)
Authorised Managers can assist shareholders in compiling and attaching the requisite supporting documents correctly with the form IEPF-5.
Scope covered under Online Claim Form IEPF-5
– A single consolidated online claim application in Form IEPF-5 can be filed covering multiple share certificates across different folios belonging to the same shareholder/claimant.
– For instance, if Mr. Raj held Tata Power shares spread over 4 physical certificates in 3 different folios, he can file a single IEPF-5 form providing details of all 4 certificates.
– The IEPF Rules allow clubbing of claims across eligible folios of the same person under one refund application.
– The online form IEPF-5 also caters to refund of any unpaid or unclaimed dividends on the shares which would be transferred to the claimant’s bank account directly by the IEPF Authority.
– One form can cover claims for shares, dividends or both provided all requisite identification details are accurately furnished in tabular format as per the eform structure.
– The authorized Managers can assess cases and assist shareholders in filing consolidated claims covering all their eligible holdings towards maximizing convenience.
Checklist for Filing Error-Free Online Refund Form IEPF-5
While submitting the online application Form IEPF-5 on the MCA portal for claiming back shares and dividends from the IEPF, shareholders should take care to:
– Provide correct personal details like name, address, email ID, phone number, PAN etc. in the claimant information section.
– Fill accurate particulars of the shares like correct company name, number of securities, exact folio numbers and distinctive certificate numbers.
– Enter precise details of the bank account where refunds are to be received like name, account number, IFSC code etc.
– Attach all necessary supporting documents without fail as mandated by IEPF – identity proof, indemnity bonds, advance receipts etc.
– Make payment of any refund claim fees online before final form submission.
– Ensure authorization verification by digital signature of authorized representative.
– Check all details thoroughly before submitting the IEPF-5 on the portal.
– Obtain and save acknowledgement number for tracking status.
Non-compliance with any of the above may lead to rejection or processing delays of the online refund application by the IEPF Authority.
Get your Managers to assess completeness of forms and mandatory attachments before filing.
Reasons for Shares being Transferred to IEPF
Some common reasons why shareholders may not have encashed or claimed their physical share certificates of Tata Power for long periods, resulting in IEPF transfers are:
– Not opting for nomination or transmission of shares in case of demise of original shareholder
– Not filing change of address and hence, non-receipt of corporate communications regarding dividends, AGMs etc.
– Loss of share certificates requiring filing of duplicate share request
– Absence of claimants who have migrated abroad or displaced without address update
– Non-linking of bank details with correct folio number
– Joint holder shares without proper endorsement on reverse of share certificate
– Pending legal disputes stalling transmission to legal heirs
– Lack of awareness about procedure for updating holder records even when residing at same address
By proactively addressing the above through better coordination enabled by Managers, shareholders can avoid the loss of portfolio assets to IEPF.
IEPF-5 Claim Filing Process for Non-Resident Shareholders
For non-resident Tata Power shareholders, the IEPF-5 form filing process remains the same as resident Indians except for the below additional requirements:
– Copy of a valid passport has to be provided as identity proof instead of Aadhaar.
– The indemnity bond needs to be on a non-judicial stamp paper.
– Client Master List should be provided by NRI Depository Participant where demat account is held.
– Extra declaration mentioning overseas address to be attached with the form IEPF-5.
– Bank details for refund payout should pertain to NRO account preferably.
– Digitally signed authorization certificate to be executed by a practicing Chartered Accountant.
NRIs should take assistance from authorized Managers in their housing society for ensuring completeness of all documentation requirements and eligibility verification needed for smooth approval of share refunds from IEPF.
Monitoring IEPF-5 Claim Status and Receiving Shares
The IEPF Authority verifies and processes all e-claims received in Form IEPF-5 on the MCA portal.
Shareholders can monitor application status through:
– Tracking acknowledgement number online under ‘View Filed Claim History’
– Monitoring status which gets updated as ‘Closed’ post claim approval
– Emailing authorized IEPF Nodal Officer seeking updates
– Providing any additional documents sought via email/SMS requests
– Receiving SMS/Email alerts on registered contact details
On satisfactory verification, the IEPF Authority transfers the claimed shares and dividends directly to the shareholder’s Demat Account.
The transfer approval intimation is sent from the email id ‘[email protected]’ informing details of shares and dividends credited.
It is advisable for shareholders to have a Demat account handy before initiating any IEPF refund claim to ensure shares can be directly credited for ease of holding going forward.
Submitting IEPF-5 Refund Claim Form in Offline Mode
While online submission of eform IEPF-5 along with e-verification is the mandated process, the IEPF Authority also allows offline claim applications in certain exceptional cases as below:
– Senior citizens (above 70 years age) can submit IEPF-5 in print after completing offline and enclosing necessary supporting documents. No need for digital signature.
– Similarly, physical forms are permitted in case the claimant is residing in an area where internet connectivity issues persist.
– The pre-printed IEPF-5 form has to be filled, signed and submitted in duplicate to the concerned Nodal Officer of the IEPF Authority handling Tata Power claims along with documentary attachments.
– Refund fees can be sent through a demand draft. Tracking will require correspondence with the Nodal Officer directly through letters/email.
– The IEPF Authority may also condone any procedural delays in claim submission on merits of each offline case after due verification.
Managers can advise on when offline submission is relevant and facilitate documentation accordingly for such shareholders.
Transfer of Unclaimed Shares to IEPF – Shareholder Rights Protection
Transfer of unclaimed shares by Tata Power to IEPF safeguards investor rights in following ways:
– It ensures unclaimed shares don’t remain in limbo indefinitely but rather transferred to a regulated statutory body only for investor education and awareness purposes.
– The shares remain held in the IEPF corpus until rightful owners submit claim and on approval, securities are refunded back along with dividends.
– Refunds can be claimed anytime without limit by original shareholders/claimants submitting valid documents.
– The transfer prompts shareholders who are simply unaware, to proactively establish their legal ownership by filing online claims with IEPF.
– For deceased cases, it pushes legal heirs to obtain succession certificates and stake claim to shares of their forefathers.
– It initiates proper inheritance transfer of shares which may have lacked claimant details for years since original holders’ demise or migration abroad.
– The Rules nudge inactive shareholders to connect with companies, update their folio, convert holdings to demat and remain vigilant, failing which shares are transferred to IEPF.
– Hence, the transfer provision protects shareholders’ portfolio rights by prompting lawful inheritance, reducing risks of misuse of unclaimed shares and bringing them under a regulated authority.
In summary, timely transfer of unclaimed shares to IEPF ends decades of accumulated inactive holdings by effectively compelling rightful owners to step forward and submit ownership claims accordingly.
Conclusion: Stay Vigilant to Avoid IEPF Loss of Share Investments
In conclusion, Tata Power shareholders must remain vigilant and monitor their portfolios to avoid shares falling into IEPF due to continuous inaction or lack of claiming dividends, updating of details etc. Seeking assistance from facility management executives to track communications for corporate actions can help overcome procedural gaps.
By authorizing Managers, shareholders can rely on expert assistance for liaising with the company registrar, periodic reporting of holdings’ status and guidance for digitization of records to avert IEPF transfers. Keeping portfolios claimed and ensuring regulatory compliance as a diligent shareholder is crucial for upholding your legal rights and safeguarding share investments.
1) Who transfers the shares to IEPF – the RTA or the company Tata Power?
The transfer is handled by Tata Power in coordination with its Registrar and Transfer Agent (RTA). Based on eligible share identification, Tata Power instructs the RTA to transfer such shares to the IEPF Authority as per laws.
2) Can legal heirs claim shares transferred from deceased relatives’ folios to IEPF?
Yes, legal heirs or claimants can recover the shares after submitting necessary documents like succession certificates, death certificates etc. along with Form IEPF-5 to establish the claimant’s legal rights.
3) How long after transfer can shareholders claim back their shares from IEPF?
There is no deadline to claim back eligible shares from the IEPF. Shareholders can submit applications anytime with requisite supporting documents as specified by the Authority.
4) What details are required for filling Form IEPF-5 to claim shares?
Fill accurate PAN, Aadhaar, folio and bank details. Provide share transfer particulars like certificate numbers, distinctive numbers and amount per certificate. Attach supporting documents as applicable.
5) Does Tata Power assist shareholders in claiming back shares transferred to IEPF?
No, once shares are transferred to IEPF, Tata Power cannot directly facilitate refunds. Shareholders have to submit claims to the IEPF Authority by filing IEPF-5 as per the Ministry of Corporate Affairs process.
6) Can IEPF share refund applications be submitted offline through physical documents?
No, according to IEPF (Accounting, Audit, Transfer and Refund) Rules, all applications have to be filed online using Form IEPF-5 on the MCA portal along with e-verification by an authorized signatory. Physical applications are not permitted.
7) What charges are applicable for filing online claims with IEPF?
Refund charges as mandated by IEPF include Rs 10 per IEPF-5 eform and Rs 50 per verification by authorized signatory to be paid electronically along with submission.
8) How can joint holder endorsement mistakes be avoided for shares held in joint names?
Shareholders should immediately get proper joint holder admission and signature endorsement as per stamp duty rules on the reverse of physical share certificates of all joint holdings to avoid rejection of claims.
9) Can a single refund application cover multiple certificates or folios of the same shareholder?
Yes, a consolidated application can be filed for a shareholder across multiple eligible certificates bearing the same PAN provided all requisite details of certificates are mentioned in the single IEPF-5 form.
10) How can shareholders in physical mode prevent IEPF transfer of shares?
Shareholders should proactively opt for Demat of shares or convert holdings to Demat before the expiry of the 7-year inactivity period. Shares held in Demat accounts are not liable for IEPF transfer.