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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Recover Unclaimed Shares of State Bank of India from IEPF
Recover Unclaimed Shares of State Bank of India from IEPF

Let’s look at why it matters to you to claim your shares and dividend before learning the procedure for claiming SBI unclaimed shares and dividends from IEPF. The shares of SBI have consistently been among the top-performing shares in the stock market since they were listed on stock exchanges. SBI’s share price increased from about Rs. 18 in 2000 to Rs. 576 as of 1.11.2022, and we have not taken any bonuses or share splits into account.

Assume you paid Rs. 18 per share in 2000 to buy 100 shares of SBI.

Total Investment = 100*18= 1800

  1. a) Stock split on November 20, 2014, in a 10:1 ratio, with 1100 shares remaining.

As a result, if you bought 100 shares in 2000, you now possess 1100 following the split.

SBI’s current share price (as of 1.11.2022) is $576.

Total Investment Value as of Now in 2022: 1100*576 = 6 lakhs

In 2000, 100 shares of SBI stock would have cost roughly Rs. 6 lakhs. Imagine your current net worth, including bonus shares and dividends, assuming you are one of them and your shares have been transferred to the IEPF. With such a stunning amount, who wouldn’t search for their unclaimed SBI shares and dividends?

Why Did Your SBI Shares That Were Unclaimed Go to Iepf?

According to government regulations, any dividend on shares that has not been claimed for seven or more consecutive years must be donated by the relevant firm to the Investor Education and Protection Fund (IEPF). If a dividend is not claimed for seven years in a row, a corporation must transfer shares to the IEPF. Previously, firms would profit from the investor’s ignorance and keep the money for themselves if the investor failed to claim the payout. The government then approved the IEPF, which obliges businesses to transfer shares that have not been claimed for seven years in a row, after understanding this blunder.

What Are the IEPF and Its Goals?

In accordance with the terms of Section 125 of the Companies Act of 2013, the Indian government established the Investor Education and Protection Fund (IEPF) on September 7, 2016, as a regulatory framework to control and safeguard investor funds.

The duties allocated to the IEPF include making refunds and recovering shares, matured deposits/debentures, unpaid dividends, and raising investor awareness. Additionally, it guarantees that the depositors would be reimbursed for any legal costs spent in bringing legal action.

The Steps for Requesting Dividends and SBI Shares From the IEPF Authorities Are as Follows. 

Investors Education and Provident Fund is the full name of IEPF. Follow the steps listed below to file an IEPF claim.

  1. From the IEPF website, access the IEPF-5 form on the MCA interface. Claimants are urged to carefully read and follow the directions in the instruction package provided on the IEPF website.
  2. Fill out the form and submit it. A “Submit Request Number” will be generated on the acknowledgment (SRN). Please keep this SRN handy for future form-tracking needs.
  3. Take a printout of the completed form and the corresponding acknowledgment.
  4. Now, deliver the original copies of the indemnity bond, copy of the acknowledgment, share certificate, and IEPF Form 5 to the company’s registered office’s Nodal Officer (IEPF) in the envelope labeled “Claim for a refund from IEPF Authority” along with a self-attested copy of your Aadhaar card and the information listed below.
  5. The claim form will now be checked by the company’s nodal officer before being sent to the IEPF authorities, who will then pay any unclaimed shares and dividends to the client account based on the verification report.
  6. Within 60 days, the IEPF authorities must respond to the company’s verification report.

Given that IEPF only has one office, which is located in Delhi, getting a refund from them might take more than 8 to 12 months.

How to Determine Whether SBI Shares Are in the IEPF?

The procedures below can be used to determine if your SBI shares are included in the IEPF or not.

  • To continue, click here.
  • Enter the investor’s information, including name, father’s name, folio number, DP-ID, Client-ID, and account number.
  • Lastly, press the search button.

Conclusion

Please take note that any of the following combinations can be used for searching

  1. Name of Investor and Father/Husband 
  2. Folio Number (should be same as per the certificate)
  3. In the format specified, DP-ID, Client-ID, and Account Number should be typed without space and should be separated by a hyphen (DPID-ClientID-Account Number).
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