So the question comes, how these shares can be tracked and how the rightful owner can claim them back? The process is not always simple, but step by step it can be explained clearly.

Why Shares Are Being Lost or Unclaimed

There are many reasons why shares are not seen in the investor’s hands anymore.

• Many certificates were issued in paper form and over years they are misplaced.

• Investors change their residence or city and company records are not updated, so dividend cheques are returned and shares go into unclaimed status.

• In cases of death of original shareholder, the heirs sometimes do not even know about the shares held.

• Companies merged, changed names or got delisted, and records were not followed by investor.

Because of all these reasons, crores worth of investor wealth is lying unclaimed in India and many families are not aware of it.

Tracking of Lost or Unclaimed Shares

The very first step is always tracking. If an investor suspects that some shares are not being reflected in demat or physical form, certain checks are needed to be done.

1. Check with the Company Registrar (RTA): Every listed company has a registrar who maintains shareholder records. Queries can be sent to them.

2. Check Old Records: Old folio numbers, dividend warrants, or physical share certificates if available should be searched.

3. Check with Depositories: If demat was done, then NSDL or CDSL can be checked.

4. Check with IEPF Authority: If dividend was unclaimed for 7 years, the shares are transferred to IEPF. The IEPF website can show if shares are transferred in the government account.

By these steps, the location of the shares can be tracked.

Claiming of Lost Shares from Company or RTA

If the shares are still lying with the company or registrar and not yet transferred to IEPF, then the claim can be made directly.

• Application has to be submitted along with proof of identity, address, and original share certificates if available.

• If share certificates are lost, then duplicate share certificates can be requested by following the process of indemnity bond, affidavit, and newspaper advertisement as per company rules.

• Once documents are verified, the shares can be reissued and later dematerialised into demat account.

This process sometimes takes long time because companies and registrars do detailed checks before issuing duplicate shares.

Claiming of Shares from IEPF Authority

If the shares have already been transferred to the Investor Education and Protection Fund (IEPF), then a specific procedure is being followed.

• Form IEPF-5 has to be filled online with complete details of claimant, company, and number of shares.

• The form and documents are submitted to the company and also to IEPF Authority.

• Documents like Aadhaar, PAN, death certificate (in case of legal heir), transmission papers, indemnity bond and cancelled cheque are usually required.

• After scrutiny, the IEPF Authority verifies and approves the claim, and shares are transferred back to the claimant’s demat account.

Though this looks simple in theory, in reality it can take many months because multiple authorities are involved and mistakes in documentation can delay the process further.

Challenges Faced in Recovery

Many investors find this process complicated because:

• Old records are missing.

• Multiple legal heirs are there in case of deceased shareholder.

• Companies and registrars take time in replying.

• Mistakes in IEPF form or documents cause rejection.

Because of this, many people take professional help from experts who are specialised in lost share recovery and IEPF claim services.

Conclusion

The issue of lost and unclaimed shares is very common but not hopeless. With proper tracking, documentation, and persistence, these shares can be claimed back by rightful investors or their heirs. The process may look long and sometimes confusing, but it is designed to make sure only genuine claims are settled.

By carefully following the steps of tracking through registrars, verifying with IEPF, submitting required documents, and ensuring compliance with legal formalities, investors can recover what belongs to them. In many cases, the value of such recovered shares is significant and can bring major financial relief to families who had forgotten about them.

In the end, what matters most is awareness. Investors should not assume that old shares are gone forever. They can be found, claimed, and restored—and it is always better to start the process sooner rather than later.

Related Articles:

https://muds.co.in/understanding-the-iepf-process-for-unclaimed-dividend-recovery/

https://muds.co.in/unclaimed-dividend-iepf-a-comprehensive-guide-to-recovering-your-money/

https://muds.co.in/sebis-new-icdr-rules-2025-what-every-investor-must-know/

https://muds.co.in/tracing-lost-shares-made-easy-a-practical-guide-to-recovering-your-assets/

The post A Complete Guide to Tracking and Claiming Your Lost Shares appeared first on MUDS.

Why Do Shares Get Lost?

People lose shares for various reasons, from minor oversights to significant life changes. Understanding these reasons is the first step to reclaiming them:

1. Change of Address or Name
   It’s common for investors to forget to update their contact details or name changes with share registrars. When contact information isn’t updated, you miss out on essential communications, including dividend notifications and financial reports.
2. Unclaimed Dividends and Dormant Accounts
   Often, shareholders don’t notice that dividends have gone unclaimed, or their accounts have remained inactive for long periods. After a certain timeframe, these assets are transferred to the Investor Education and Protection Fund (IEPF).
3. Loss of Physical Share Certificates
   Before digital Demat accounts, shares were often issued as physical certificates. These documents can easily be misplaced or damaged over time, making it hard to retrieve the associated assets.
4. Inheritance Without Documentation
   Sometimes, shares are left behind by family members. Without the right documentation or awareness, heirs may struggle to access these shares.
5. Errors in Registrar Records
   Sometimes, administrative errors or miscommunication with the registrar can create complications in accessing shares, leading to them being lost or considered inactive.

How to Recover Your Lost Shares: A Step-by-Step Guide

Recovering lost shares can seem complicated, but by following a structured approach, you can reclaim these assets successfully.

Step 1: Gather Information on Your Holdings

Begin by checking any old financial statements, previous Demat account records, or broker records. Even bank statements showing past dividends can be helpful clues. You can also contact your Depository Participant (DP) or Registrar and Transfer Agent (RTA) for assistance in verifying your shareholding status.

Step 2: Leverage Online Databases and IEPF Resources

Use the IEPF portal or other online resources offered by NSDL (National Securities Depository Limited) and CDSL (Central Depository Services Limited). These platforms let you search for unclaimed shares and dividends by simply entering your name or other relevant details.

Step 3: Contact the Company or Registrar’s Investor Relations

If the shares belong to a listed company, contact the Investor Relations Department or the registrar. They can provide information on your shares’ status, including any unclaimed dividends or potential pathways for recovery.

Step 4: Consult with the IEPF for Transferred Shares

For shares that have been transferred to the IEPF, you’ll need to submit a claim. This involves registering on the IEPF website, filling out a claim form, and providing the necessary documentation. This step can feel daunting, but with guidance from experts like MUDS Management, you can navigate the application process more confidently.

Essential Documents Needed for Share Recovery

To reclaim your shares, you’ll need to provide documents that prove your identity and shareholding. Here’s a quick overview of what you may need:

Missing some of these documents? This is where MUDS Management can assist by guiding you through alternative ways to validate your claim, making the process as seamless as possible.

Understanding the Role of the IEPF in Share Recovery

The Investor Education and Protection Fund (IEPF) is a regulatory body established to manage unclaimed investments, including dividends and shares, which have been dormant for a specified period (typically seven years). Here’s how you can claim your assets from the IEPF:

1. File an Application on the IEPF Website
   Register and complete the claim form, providing all necessary details about your lost shares.
2. Submit Essential Documents
   Documents include identity proof, shareholding proof, and affidavits, as specified by the IEPF guidelines.
3. Verification and Approval
   Once documents are submitted, the IEPF verifies the claim, and upon successful validation, assets are transferred back to the rightful owner.

Recovering shares from the IEPF involves paperwork and follow-up. MUDS Management specializes in handling such cases, ensuring you’re informed throughout the process and that your application progresses efficiently.

Practical Tips to Prevent Losing Shares in the Future

Preventing share loss involves proactive management of your investments. Here are some actionable tips:

• Keep Contact Details Updated
  Whether it’s a new address, name change, or updated bank information, ensure that these changes are reflected with your depository, bank, and share registrar to avoid future issues.
• Convert Physical Shares to Demat Form
  Demat accounts store shares electronically, eliminating the risk of losing paper certificates and making it easier to track assets.
• Claim Dividends Regularly
  Opt for direct dividend credits to your bank account, which minimizes the risk of unclaimed dividends.
• Consolidate Shares into a Single Demat Account
  Having shares scattered across multiple accounts makes it difficult to track. Consolidating them in one place ensures you have an overview of all your investments.

If you’re unsure about any of these steps, MUDS Management offers guidance and services to help clients maintain organized, accessible records, reducing the risk of lost shares.

How MUDS Management Can Simplify Your Share Recovery Journey

Recovering lost shares can feel overwhelming, especially with the documentation and regulatory processes involved. That’s where MUDS Management comes in. Here’s how we assist our clients:

1. Expert Documentation Assistance
   Preparing and filing affidavits, indemnity bonds, and other documentation can be complex. Our team at MUDS provides end-to-end assistance, ensuring all required paperwork is accurate and complete.
2. Liaison with IEPF and Registrars
   We handle all communication with the IEPF Authority and the registrars, which streamlines your recovery process. Our extensive experience means we know how to fast-track your application and avoid common pitfalls.
3. Consistent Follow-ups and Updates
   Staying informed on the status of your claim is crucial. MUDS Management keeps clients updated with regular progress reports, giving you peace of mind throughout the recovery journey.

With MUDS, you’re not just another client; we’re committed to ensuring you reclaim your hard-earned investments without unnecessary hassle.

Frequently Asked Questions (FAQs)

Q1: What are lost shares, and how do they occur?

A: Lost shares refer to shares that an investor cannot locate due to reasons such as change of address, lost physical certificates, or unclaimed dividends. They may also occur due to improper record-keeping or administrative errors with the registrar.

Q2: How can I identify if I have lost shares?

A: You can identify lost shares by reviewing old financial documents, checking past dividend statements, and contacting your broker or the company’s investor relations department to verify your holdings.

Q3: What is the process for recovering lost shares?

A: The recovery process typically involves gathering necessary documentation, contacting the company’s registrar or investor relations, and potentially filing a claim with the IEPF if the shares have been transferred to it.

Q4: Do I need to provide original share certificates to claim lost shares?

A: Original certificates are not always required, especially if they are lost. You may need to provide alternative proof of ownership, such as transaction histories or prior communications regarding the shares.

Q5: What documentation is needed to recover lost shares?

A: Required documents may include proof of identity (like a PAN card or Aadhaar), previous share certificates (if available), bank statements showing dividends, an affidavit, and other supporting documents based on the situation.

Q6: How long does the recovery process take?

A: The timeline can vary widely based on the complexity of your case and the responsiveness of the involved parties. Generally, it may take several weeks to months to complete the recovery process.

Q7: Is there a fee for recovering lost shares?

A: There may be fees associated with professional services that assist in recovery. However, the IEPF does not charge a fee for filing claims. Always clarify fees before engaging services like those offered by MUDS Management.

Q8: Can I recover shares that have been transferred to the IEPF?

A: Yes, shares transferred to the IEPF can be reclaimed through a formal application process. You must provide the required documents to prove your claim.

Q9: What is the role of the IEPF in recovering lost shares?

A: The IEPF manages unclaimed assets, including shares and dividends. It facilitates the process for rightful owners to reclaim these assets and ensures that funds are used for investor education and protection.

Q10: How can MUDS Management assist in recovering lost shares?

A: MUDS Management offers expert guidance throughout the recovery process, including document preparation, liaison with the IEPF and registrars, and keeping clients updated on the status of their claims.

Q11: Can I recover shares if I don’t have any record of them?

A: It may be more challenging without documentation, but it’s not impossible. You can try to gather information from past brokers or through the IEPF and MUDS Management can help in this effort.

Q12: What are the common reasons for shares being unclaimed?

A: Shares may become unclaimed due to changes in contact information, lack of awareness about dividends, failure to respond to communications, or death of the shareholder without a clear succession plan.

Q13: Can shares be transferred to heirs without documentation?

A: While it’s preferable to have documentation (like a will or death certificate), it may still be possible to transfer shares through legal procedures. Consulting with MUDS Management can help navigate these complexities.

Q14: How do I know if my shares are dormant?

A: You can check with the company registrar or look for notifications from the IEPF regarding unclaimed or dormant shares. Regularly reviewing your investment records can also help identify inactivity.

Q15: What happens if I cannot recover my lost shares?

A: If recovery efforts fail, shares may remain with the IEPF indefinitely. However, with expert assistance and persistence, many investors successfully reclaim their assets.

Q16: Is there a time limit for recovering lost shares?

A: While there isn’t a strict time limit for recovering shares, claims to the IEPF should be filed within seven years of the asset becoming unclaimed. After this period, the shares are transferred permanently to the IEPF.

Q17: What types of shares are eligible for recovery?

A: Any shares that have been issued and are legally owned by you can potentially be recovered, including those that are dormant or have gone unclaimed.

Q18: Are there any risks involved in recovering lost shares?

A: The primary risks involve administrative errors and delays. Engaging with reputable services like MUDS Management can mitigate these risks by ensuring accurate and timely submission of claims.

Q19: What is an indemnity bond, and why is it needed?

A: An indemnity bond is a legal document in which you agree to compensate for any loss incurred due to the loss of shares. It is often required when claiming lost or stolen certificates to protect the registrar and the company.

Q20: How can I keep track of my shares moving forward?

A: Maintain organized records of your shareholdings, regularly update your contact information, and opt for digital Demat accounts to easily manage and monitor your investments.

Q21: Can I transfer my shares to another person while they are lost?

A: No, shares cannot be transferred until they are recovered and verified. Once recovered, you can transfer them through the appropriate channels.

Q22: What steps should I take if I receive a notice about unclaimed dividends?

A: Respond promptly to any notices you receive. Verify your shareholding status with the company or registrar and take action to claim any unclaimed dividends.

Q23: What if the company has been delisted?

A: If a company is delisted, shares may still be recoverable. Contact the registrar or MUDS Management for specific guidance on how to proceed in such cases.

Q24: Are there any online resources to track lost shares?

A: Yes, the IEPF website and platforms like NSDL and CDSL provide resources to check for unclaimed shares and dividends.

Q25: Can MUDS Management help with international share recovery?

A: Yes, MUDS Management assists clients worldwide, including NRIs, in recovering lost shares associated with Indian companies.

Q26: What should I do if I suspect fraud related to my shares?

A: If you suspect fraud, report it to the authorities immediately and consult with legal experts. MUDS Management can guide you through the recovery and legal processes.

Q27: Can shares be lost due to company bankruptcy?

A: While shares may lose value in the event of bankruptcy, they are not typically “lost.” Investors may need to consult with a financial advisor to determine the best course of action following a bankruptcy.

Q28: How often should I review my investment portfolio?

A: It’s advisable to review your investment portfolio at least annually or more frequently if there are significant changes in your personal circumstances or financial goals.

Q29: What is the best way to organize my financial documents?

A: Create a filing system (physical or digital) that categorizes documents by type (shares, bonds, insurance, etc.) and regularly update it to reflect any changes in your investments.

Q30: What are the signs that my shares may be lost or unclaimed?

A: Signs include not receiving dividend notices, having no records of transactions, or receiving communications about unclaimed dividends from companies or regulatory bodies.

Conclusion

Losing track of shares doesn’t mean they’re lost forever. With a structured approach and the right support, you can recover these assets and potentially unlock significant financial value. MUDS Management has years of experience in the share recovery space, providing expert guidance and hands-on support every step of the way.

If you’re ready to reclaim your assets, don’t leave it to chance. Let MUDS Management streamline the process and help you recover your rightful investments with ease and efficiency.

The post Tracing Lost Shares Made Easy: A Practical Guide to Recovering Your Assets appeared first on MUDS.

The Central Government created the Investor Education and Protection Fund (IEPF) to secure shareholders’ rights and inform people. Section 125 of the Companies Act of 2013 governs it (the “Act”). The investor education and protection fund authority collects and deposits undisclosed or unclaimed monies from a company’s investors. 

INVESTOR EDUCATION AND PROTECTION FUND AUTHORITY ADMINISTRATION AND REGULATION 

The investor education and protection fund authority is administered by the investor education and protection fund authority, which consists of a chairman, a chief executive officer, and up to 7 other officials appointed by the Central Government. The IEPF Authority oversees the IEPF resources and keeps accounting records and other relevant documentation as necessary after conferring with the Comptroller and Auditor-General of India. The sums gathered to the investor education and protection fund authority in line with the Act’s provisions are the revenues of the IEPF.

The investor education and protection fund authority should only use and distribute investor education and protection fund authority for the reasons laid forth in the Act. The CAG of India will analyze the IEPF’s records. Once a year, the investor education and protection fund authority will give the Central Government inspected finances and an independent audit.

The IEPF Board will also submit an annual report for every financial year, which would include a detailed explanation of its activities and will be sent to the Central Govt. The Central Government must present the investor education and protection fund authority financial statement, as well as the audit report of the CAG of India, to every House of Parliament.

Funds Deposited to the IEPF Fund

Underneath the Act, the relevant funds will be allocated to the IEPF:

• When House has granted the appropriate funds for them to be utilised for the objectives indicated in the Act, the sum granted by the Central Government as grants.
• The federal government, companies, state governments, and other organisations make donations to the IEPF for use in compliance with the Act’s stipulations.
• The sum is moved to the investor education and protection fund authority from a company’s unpaid dividend account after it has been unpaid/unclaimed for seven years from the transfer date. The IEPF will receive the unpaid dividend account amount as well as any accrued interest.
• Those stocks where a dividend has still not been issued or received for 7 years or more have to be transferred to the investor education and protection fund authority, along with a statement describing the facts.
• Per Section 205A(5) of the Companies Act, 1956, an amount was allocated to the Central Government’s general revenue fund that was unpaid or unpaid at the moment the Companies Act, 2013 was adopted.
• The money kept in the Investor Education and Protection Fund is exempt from taxation under Section 205C of the Companies Act, 1956. (IEPF).
• The interest or other income generated by the investor education and protection fund authority‘s investments.
• The company is owed a return of the application costs collected upon stock allocation.
• Deposits that had matured with companies other than banks went unreported and unacknowledged for 7 years after they were scheduled to be refunded.

How IEPF Amount is Utilized

The IEPF Authority should only use and utilize investor education and protection fund authority for the specified objectives, per the Act: 

• Refunds for mature debt securities, deposits, unclaimed profits, and the application money that is due for repayment and its interest.
• Investor education, training, and security are all encouraged.
• Per Sections 37 and 245 of the Statute, the National Company Law Tribunal has allowed compensation of lawyer expenses spent by debenture holders, shareholders, or investors in filing class-action lawsuits.
• The disintegrated cash is delivered to recognized and authorized candidates for debentures or shares, debenture holders, shareholders, or depositors who have suffered losses as a result of any person’s misconduct, according to court rulings of disgorgement. The disgorged amount is the money received through the sale or disgorgement of securities.
• Any additional goal that isn’t connected to the ones listed above.

What Are The Refund of Amounts Credited to IEPF

Any person or shareholder whose unpaid or unclaimed money has been shifted by the corporation from the unpaid dividend account to the IEPF will be reimbursed by the investor education and protection fund authority. According to Section 125(3)(a) of the Law and Regulation 7(1) of the Investor Education and Protection Fund Authority (Finance, Auditing, Moving, and Compensation) Regulations, 2016, they can seek a refund.

The company deposits the outstanding or unfilled funds of the shareholders in the unpaid dividend account to the IEPF for the following seven years. Shareholders, on the other hand, can submit Form IEPF-5 to the IEPF Authority to obtain a refund of their payments to the IEPF. They must submit the necessary documents, as well as Form IEPF-5, in order to get compensation.

Stock holders should fill out Form IEPF-5 on the IEPF website to obtain payment for unclaimed funds. They must fill out the form, upload it to the IEPF website, and email it to the company’s Nodal Officer (IEPF) at corporate headquarters together with the necessary paperwork.

The documents and the Form IEPF-5 will be verified by the relevant company. Depending on the firm’s verification report, the IEPF Board will digitally communicate the refund to claimants’ (shareholders’) Aadhaar-linked investment accounts.

The post How Investor Education and Protection Fund Authority is Regulated in India appeared first on MUDS.

In this post, we’ll look at how to register a business in Kolkata. Company registration is a procedure through which all businesses are registered on the MCA’s website (Ministry of Corporate Affairs). The Company Registration in Kolkata is a simple procedure, but it requires numerous procedures to complete.

A Private Limited Company offers its stockholders legal protection and limited liability. A privaely held limited firm must have at least positions two working directors. A person can be both a director and a shareholder in a Private Limited Company. After receiving a Certificate of Incorporation, a Private Limited Company (PLC) can begin operations. Within 15 days following its application, a PLC can be implemented.

As a result, we will concentrate on the advantages and procedures of forming a Private Limited Company registrationin Kolkata in this post.

Advantages of forming a private firm company registration in Kolkata

1. A private limited company might have anything from two to fifty directors.
2. It is a legal autonomous body.
3. Directors have limited liability and are not directly responsible for the company’s operations.
4. Directors are only partially liable to creditors.
5. In the event of a default, the bank or creditors will sell the company’s assets rather than personal property.
6. The directors are eligible for tax benefits.
7. Suing or being sued in the name of a registered corporation is possible.
8. Companies that are registered have a higher chance of borrowing money.

Company Registration in Kolkata: Private Company Incorporation Checklist

• Directors: For private company registration in Kolkata, a minimum of two directors is required, with one of them being a resident director.
• The investment must be made in accordance with the business type, and there is no minimum capital investment necessary for a firm.
• Inventive business name: The name of the firm must not be identical or confusingly similar to that of another company.
• Registered address: Every business should have one.

Steps for Incorporation of the Company

The following are the stages of forming a business using the RUN form:

1. After that, create a login account and log in.
2. Enter the name you want to use and cross-reference it with the MCA database.
3. If an established business wants to reverse its name, a CIN will be requested through the RUN e- form.
4. The applicant must specify the name that he or she wishes to keep on file in case the firm’s name is changed or a new company is formed.
5. Then he or she must submit the prospective company’s objects as well as any additional documents in support of the suggested name.

Limited Name Validity

• For a new corporation, an authorised name is valid for 20 days from the date of approval.
• 60 days after the date of authorization for changing the name of an established corporation.

Steps for Private Company Registration in Kolkata

Step 1: Obtain DSC

Because the process is online, a digital signature is required for the incorporation of a private limited company. Members and executives must have a legitimate Class II or Class III DSC.

Step 2: Fill out an application for a DIN number.

A directors must have a DIN and must apply for one on MCA if he does not already have one. A DIN number can be used to become a director in many businesses.

Step 3: Submit an application for name approval

At the time of establishment, the company’s name, as well as SPICe (INC-32) must be submitted for approval. If the name is rejected, it can be resubmitted.

Step 4: e-MoA (INC-33) and e-AoA are the fourth and final steps (INC-34)

Previously, MoA and AoA had to be filed physically, but now they must be filed online on the MCA website. These papers must be digitally signed by the subscribers.

Step 5: PAN and TAN applications

After all of the paperwork have been completed, the applicant should consider applying for a PAN and TAN.

Step 6: Certificate of Incorporation 

MCA & RoC will analyse all of the documentation and issue a Certificate of Incorporation if they are pleased. The Certificate of Incorporation is a legal document that grants the firm legal standing.

7th Step: Open bank Accounts

The firm must create a bank account for any transactions in its name after receiving the certificate of incorporation.

In order to register a company in Kolkata, you’ll need the following documents

Documents required for company registration  in Kolkata:

1. For DSC 
2. DIN (Director Identification Number)
3. Incorporation of a Business

In the case of DSC,

1. Along with the DSC application form, the following papers must be forwarded:
2. The claimant’s photograph (to be stamped across with a blue pen)
3. The director’s address proof (s)
4. Id Proof (Pan Card) of the applicant Passport Aadhar card Driving licence Voter Id card Email Id and contact number (for each director)

DIN

Fill out the e-form DIR -3, which is available on the MCA website. Alongside Form DIR -3, attach the supporting information:

1. Id proof photo of the applicant (attested)
2. Proof of address (attested)
3. Make the payment as directed. The only way to pay is on the internet.
4. There will be a preliminary DIN created.
5. A preliminary DIN becomes an authorised DIN after verification.

• For a Firm’s Registration
• The Firm’s Title
• The firm’s assets
• Investors’ list
• The director’s Id proof is the company’s purpose (s)

1. Aadhar card and passport
2. Id cards for voters and driver’s licence
3. Director’s proof of residence (s)
4. Bank statement Telephone bill
5. The cost of electricity
6. Mobile phone bill (not old than two months)
7. INC-9 Director(s) Consent (form DIR-2) (Affidavit)

• Proof of the registered office’s address

1. Bills of Gas, 
2. Phone, and
3. Electricity

If the office is included in the lease, the lease agreement and a letter of authorization from the owner are required.

Holders of DINs declare themselves

A Private Limited Company Registration in Kolkata is an online operation that should be completed with caution, and once completed, the directors are entitled to all of the privileges of a Private Limited Company.

The post Private Limited Company Registration in Kolkata Via Online Method appeared first on MUDS.

Releases from the RBI Monetary Policy 2022 Meeting: The six-member Monetary Policy 2022 Committee (MPC), led by Reserve Bank of India (RBI) Governor Shaktikanta Das, maintained the repo rate at 4% and the reverse repo rate at 3.35 % intact. Here’s what the governor of India’s central bank said.

RBI Monetary Policy 2022: The Reserve Bank of India’s (RBI) Monetary Policy 2022 Committee (MPC) retained the repo rate at 4% for the 11th straight approach achieves a ‘affiliative posture,’ according to RBI Governor Shaktikanta Das on Friday.

The MPC decided unanimously to continue the accommodating approach, according to the central bank governor, and the reverse repo rate was also remained steady at 3.35 percent.

The Marginal Standing Facility (MSF) rates and the lending rate were likewise held steady at 4.25 percent.

On May 22, 2020, the RBI reduced its policy repo rate, or short-term lending rate, in an off-policy cycle to boost demand by decreasing interest rates to a historic low.

In a press conference following the Monetary Policy 2022 meeting, Das stated that the RBI will return the liquidity adjustment facility (LAF) corridor to 50 basis points (bps), as it was pre-Covid. The MSF rate and the bank rate remain at 4.25 percent.

“It also agreed to remain accommodating while concentrating on withdrawal of accommodation to ensure that inflation remains within the goal moving ahead, while encouraging expansion,” 

-he added on the central bank’s attitude.

” It will continue to be part of the RBI’s toolbox, and its use will be at the discretion of the RBI for objectives that are indicated from time to time. The FRRR, in conjunction with the SDF, will increase the flexibility of the RBI’s liquidity management framework.”

The RBI reduced its growth prediction for the current fiscal year to 7.2 percent from 7.8 percent previously, while increasing its inflation forecast to 5.7 percent from 4.5 percent.

He went on to say that, given the inordinate volatility in international oil prices as of early February, as well as the extreme uncertainty surrounding the evolving geopolitical tensions, any projection of growth and inflation is fraught with risk, and is largely dependent on future oil and commodity price developments.

Das addressed liquidity and financial market circumstances in his speech, stating that the RBI will continue to take a sophisticated and agile approach to liquidity risk management while preserving appropriate liquidity in the system.

“At the moment, liquidity management is distinguished by two procedures: variable rate reverse repo (VRRR) bids of varied maturities to swallow liquidity, and variable rate repo (VRR) auctions to fill temporary liquidity problems and offset anomalies.” “We will keep taking this strategy,” he stated.

ATM cash withdrawal without a card that is interoperable

In an effort to combat fraud, the Reserve Bank of India agreed on Friday to allow all banks to use card-less cash withdrawal through ATMs. Currently, card-less cash withdrawal via ATMs is a permissible form of transaction allowed by a few banks in the nation on an as-needed basis (for their customers at their own ATMs).

Economic experts and market analysts reacted as follows:

• The severe reduction in GDP forecasts for FY23 and significant increase in inflation expectations for FY23 might suggest some tightening measures in the future, which would be supported by the shift in posture to focus on withdrawal of accommodation. Current geopolitical developments, supply chain concerns, and commodity price increases are tying the RBI’s hands and pushing it to progressively turn hawkish, despite its desire to maintain its pro-growth perspective. The 10-year Gsec yield has increased to 7%, showing the street’s worry over the massive borrowing programme in the face of rising interest rates.”
• “Retaining the repo rate at 4% and the reverse repo rate at 3.35 percent, continuing with the accommodating posture on expected lines,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. Recognizing the new reality of increased petroleum prices caused by the war, the RBI cut the FY23 GDP growth rate prediction to 7.2 percent from 7.8 percent before and upped the FY23 CPI inflation projection to 5.7 percent from 4.5 percent previously. This is predicated on the premise that crude will be $100 per barrel. This suggests that if crude falls considerably, which is likely if the conflict ends soon, GDP and inflation will improve.The opposite might be true if the battle escalates and petroleum prices rise well beyond $100. The Governor correctly underscored India’s macroeconomic fundamentals, noting to an improvement in the external position aided by record exports, large foreign reserves of $608 billion, and banking sector development. The SDF (Standing Deposit Facility) is a new mechanism established by the central bank to absorb liquidity. 

“The recent RBI Monetary Policy 2022 did not include any surprises,” stated Nish Bhatt, Founder & CEO of Millwood Kane International, “it held rates constant for the 11th straight policy.” However, it has clearly outlined the road to policy unwinding. The emphasis will now be on withdrawing the accommodating policy stance in order to keep inflation under control. The RBI’s statement today plainly suggests the end of loose Monetary Policy 2022, which is reflected in the 10-year benchmark yield, which has reached a multi-year high. The unwinding of liquidity will cause some instability, and it is expected that the RBI would drop the growth rate prediction for FY23 to 7.2 percent, with the inflation target raised to 5.7 percent from 4.5 percent previously. The explicit goal of central banks throughout the world is to manage inflation, unwind lose money, and concentrate on gradual and steady development.“

The post New Monetary Policy 2022: Repo Rate Remained Unchanged appeared first on MUDS.

Sexual harassment law: The word “workplace” confers to the Sexual harassment at workplace of Women at Workplace (Regulation, Prevention, and Redressal) Posh Act of 2013, and specifically includes:

The post POSH Act: ALL ABOUT THE SEXUAL HARASSMNET LAW IN INDIA appeared first on MUDS.

People might think that the value of the shares was so low that it doesn’t even matter, but over a long period the values change and it might be possible that shares are very profitable to redeem in the present scenario. In this scenario, people start to wonder about how they can redeem their shares bought years ago. This is what we are going to discuss in the following sections.

How to Recover Age-Old Investments?

At times like these, hiring a broker is a very important step. The broker has complete knowledge and can help you easily sell off all your remaining shareholdings of the old shares. Also, the physical shares available can only be submitted through brokers for sale in the stock market.

The other way is to get in contact with the Registrar of the company (whose shares you possess) if they are still running and approach them for help. They can help you with transferring all those physical shares to your Demat account which will allow you to buy more of those shares or sell those shares as you wish after the details of them are verified.

Those shares can then be sold off and the money will then be added to the Demat Account which can then be used to invest more shares from the stock market.

Why the Dematerialisation of Shares is Important?

Dematerialization means the proof of the ownership of shares is taken by the respective owner company and then destroyed after which the same amount of the shares is added to the investors account digitally. In simple words, it is the conversion of physical shares to the digital form.

Converting those physical shares into digital shares is immensely beneficial as it saves them from theft, loss, or damage. Plus, it makes managing all the shares way easier from a single place. And since it’s all digital, it doesn’t require any paperwork and in turn, leads to faster transactions while trading for better and efficient results.

All the unclaimed dividend and other unclaimed things which are left out are then verified and destroyed later to be put in the investor’s Demat account in digital form. So dematerialisation is very important since it reduces frauds to a great deal and makes the handling of shares easier and efficient. For the same reason, SEBI has also issued the directives for all the physical shares to be dematerialized by conversion into digital form.

How to Redeem the Physical Shares?

Earlier we discussed how we can recover the investments made but now let’s understand how we can redeem the physical shares. The first step is to search for all possible physical shares you can find, consolidate them, and sort them according to whether they are the Share Certificates or Mutual Funds Certificates.

Now to redeem all the gathered physical shares. As we discussed earlier, we’ll have to approach the registrar of the company to show them the physical shares and certificates we have to prove ownership. If for some reason the registrar is not available, then you can ask the broker to deal with your problems on the matter.

In the end, you’ll have to make sure that if the company is still listed anymore or not. That being the case, if the company is listed then everything will go smoothly. That means that all your documents will be verified, and all your physical shares will be redeemed by you in the end. But if the company is not listed anymore, then, unfortunately, nothing can be done in that matter and the physical shares will become obsolete.

All it comes down whether the company is still listed by the time you try to redeem all those physical shares or not. And in case of those mutual fund’s certificates, they can all be dealt with very easily and redeemed by just approaching the office along with all the valid documents. After this, all the due amount will be credited to your respective bank account, or you can approach the IEPF to help you in the matter.

What is IEPF?

It’s a government organization which focuses on promoting awareness among the investors with an aim to protect investor’s interest. The Investor Education & Protection Fund gives ways of redeeming old funds and shares. On the website, it shares ways for what steps are needed to be taken to guarantee the recovery of all your invested money. The IEPF fund set up by the government keeps all the old unclaimed dividends and shares of all listed companies. If the dividends for shares go unclaimed for 7 years then they must be transferred to IEPF. So, for old shares, the investor can simply apply to IEPF, get his/her documents verified from the company, and then wait as the company’s verifying officer sends the recovery application to the IEPF authority after verification. After this procedure, the IEPF will release the dividend corresponding to the value of old or lost shares.

The post A Guide to Recovery of Investments from the Stock Market appeared first on MUDS.

Do you think buying only 100 shares of a company can give you more than ₹ 1 crore in dividends? Yes, you read it right! ITC Limited has made it impossible for its long-term investors. If your father or grandpa had bought 100 shares of ITC during its IPO, then today, getting a refund of shares from IEPF for that investment would have made you a multimillionaire.

Curious to know about it? In this blog, we will discuss the progression of share prices of ITC over the years and how availing IEPF services for a refund of shares could lead to an investor making a fortune out of it.

About the Company

Over a century of operation, the ITC’s journey has indeed been one of extraordinary transformation – from a small outpost of an overseas-owned company with a single product to one of India’s most admired and valuable multi-business enterprises.

Only a handful of enterprises in the world have traversed a 100-year journey and managed to remain relevant and competitive.

According to an article published in 2014, in the last four decades, ITC’s top-line growth from 1970 to 2014 increased from Rs. 145 crore to over Rs. 48,000 crore (Rs. 480 billion) in 2014. Its profit after tax soared from Rs. 4 crore (Rs. 40 million) to cross Rs. 8,700 crore (Rs. 87 billion) and market capitalization expanded from around Rs. 35 crore (Rs. 350 million) to more than Rs. 2,75,000 crore (Rs. 2,750 billion).

Source: https://www.rediff.com/money/report/pix-column-100-years-of-itc–corporate-indias-big-success-story-/20141208.htm

The data indicates the growth of the company over the years and how it has translated into making huge profits for its investors.

Calculation

Yearly bonus issues by ITC since its IPO:

Source: https://www.itcportal.com/about-itc/shareholder-value/investor-relations/general-information.aspx#sectionb5

Now if you calculate the valuation of ITC shares from 1995 only, then according to the data available on its website,

• You may notice that the price of 1 share of ITC in 1995 grew from nearly Rs. 5 per share to nearly Rs. 290 per share in 2020.
• Now, this roughly translates to roughly 57 times increase in the value of the share. with the company offering bonus shares for its shareholder from time to time, the shareholding also increased for investors thus leading to huge gains in their income.
• For example, 100 ITC shares bought in the 1974-75 IPO grew to 8,820 shares by 2009. Other than the dividends and bonus shares received over the years, an investor would have got Rs. 88,200 in 2010, when ITC declared a dividend of Rs. 10 per share during its centenary celebrations. Later, the company declared a 1:1 bonus, increasing an investor’s holding to 17,640 shares. At a stock price of Rs. 155, his ITC holding translated to roughly Rs. 27.3 lakh.

Source: https://www.businesstoday.in/moneytoday/cover-story/patience-brings-rich-rewards/story/8840.html

• Now, these were the estimates of only 100 shares bought in 1974-75. Now imagine if your grandfather or father had bought a thousand shares at a meagre price and forgot about it over the years. But if you find out about these shares today then you can calculate that the value of these shares would be in more than a crore rupee when calculated up to the modern process.
• Therefore, finding an old investment in ITC could work as a lost treasure finding for people as it could result in making huge sums of money instantly.

Now, let us understand how you can claim unclaimed dividends of long-lost investments made by your elders.

About Investor Education and Protection Fund (IEPF)

The Government of India introduced the IEPF services to address the ever-increasing problem of people forgetting their shareholdings in a company. The IEPF was launched to promote the protection of interest of investors and spread awareness among them. The unclaimed dividend and refund of lost shares transferred to this account are taken care of by the Government on behalf of the rightful shareholders. The dividends on the shares remain unclaimed for years because people tend to forget that they own the shares in the first place. There are multiple reasons why people forget about their ownership in a company:

• No Nominee: Usually investors do not appoint a nominee/ heir to take care of the shares after their death. Therefore, the shares remain deserted because the heirs are clueless about their ownership of such shares.
• Small Investments: Generally, the investment is of small amounts due to which an investor forgets about the shares.
• Property Dispute: Shares get attached to the court because proceedings are pending in the courts regarding the property dispute. Thus, the shares remain ownerless till the court’s verdict.

There are many other reasons why an investor forgets about his/ her shareholding in a company. This is the reason why many companies have abundant shares with them with no sign of ownership.

Before the introduction of the IEPF, the companies were required to transfer the unclaimed dividends and unclaimed shares to the government funds. The Government could then use such funds for various public welfare schemes and various developmental works.  Since the problem of people forgetting their shareholdings in a company was increasing, the Government realized that it was causing huge losses for the investors. Therefore, the Government decided to set up the IEPF.  It is a one-stop solution that the government provides to the members of a company. Here, the members can approach the government and claim their dividends. Along with that, they can ask them to refund their long-forgotten shares. The IEPF was initiated while keeping in mind the interests of the shareholders. IEPF protected the investors’ funds while spreading awareness regarding the same.

The Government takes care of the unclaimed dividend and lost shares transferred to this account on behalf of the rightful shareholders. Thus, even after 7 years, investors can claim their dividends and shares from the fund manager by applying to the managing authority. People can claim their dividends and shares of different companies through one platform instead of going to each company individually, that is why IEPF is known as a one-stop solution.

Provisions Governing IEPF

The functioning of IEPF is governed by the Companies Act, 2013 read with the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016. Once a company declares a dividend on the shares, the shareholders get 30 days to claim the said dividend. After 30 days, if the dividends remain unclaimed by the shareholders, then the company, according to the above-stated laws, is obliged to transfer such dividends to a special account. This special account is opened in the name of the company, known as ‘Unpaid Dividend Account’.

After that, the company gets 90 days to publish a list of all the shareholders along with their unclaimed dividends on its website. In addition to this, the company can use any other mode of communication to tell its members about their unclaimed dividends kept with the company. If a shareholder wants to retrieve his unclaimed dividend from the ‘Unpaid Dividend Account’, then he must apply to the transfer agent of the company. Despite all these, if a shareholder, for any reason stated above, fails to claim the amount from the company for 7 years, then the company shall transfer such unclaimed dividend to the IEPF Account. The shares on which such dividend was declared will also get transferred to the IEPF for they are considered as forgotten shares. Thus, if the dividends remain unclaimed for 7 years, then the dividend and shares, both get transferred to the IEPF Account.

Provisions of Investor Education and Protection Fund:

Transfer of Dividend: As MCA has issued Investor Education and Protection Fund Authority Rules, 2017. As per these rules, Any money transferred to the Unpaid Dividend Account of a company in pursuance of this section which remains unpaid or unclaimed for seven years (7 years and 37 days from the date of declaration of dividend) from the date of such transfer shall be transferred by the company along with interest accrued, if any, to Investor education and protection fund. MCA has amended The Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) though Second Amendment Rules, Dated 14th August 2019 Effective from 20th September 2019.

Even all shares in respect of which dividend has not been paid or claimed for seven consecutive years or more shall be transferred by the company in the name of Investor Education and Protection Fund. In previous years, unclaimed shares transfer to IEPF has taken place for many forgotten investments. As a normal person, the main issue is how to get a refund of shares from the IEPF in their name. In this article, we will discuss “Process for a general person to claim their shares from IEPF to their names from Reliance Industries limited”.

Now, let’s understand how a common person can apply for a refund of shares from IEPF.

The Process of Refund of Lost Shares using IEPF Services:

Any person, whose unclaimed dividend, shares, matured debentures, matured deposits, application money, or interest thereon, redemption proceeds of preference shares, sale proceeds of fractional shares, etc. have been transferred to the IEPF, can raise claim and apply for a refund from IEPF.

Step- I | Application by Claimant to Authority

The claimant must apply to MCA in e-form IEPF-5 by mentioning their details like:

• Details of applicant and company
• Details of shares and amount claimed
• Year by year details of deposits/securities
• Identity card or Aadhaar Number/Passport/OCI/PIO Card No.
• Details of Bank account linked to Aadhar

NOTE:

Claimant can download the form from the website of IEPF Services http://www.iepf.gov.in/

Step- II | Sending Docs to Company

After filing the refund of shares form online, investor should send all the documents with necessary attachments to the prescribed Nodal Officer for (IEPF services) of the company at its registered office initiating the verification process of the claim:

Step- III | Appointment of Nodal Officer | Company Compliance

Every company that has transferred the shares to the IEPF must nominate a Nodal Officer to address the claims verification process. The officer must be a Director or Company Secretary or Chief Financial Officer of the company. The nodal officer will verify claims and coordinate with IEPF Authority. A company can appoint multiple nodal officers to handle the various claim applications.

Step- IV | Verification Details Sent by Company to Authority

The company’s nodal officer shall send a verification report to the Authority within 30 days of receipt of claim form, in the forma specified by the Authority along with all other documents submitted by the claimant.

Step- V | Authority Approval or Disapproval

After verification of the entitlement of the claimant-

The authority after verification of all the documents send by the nodal 0fficers will decide to approve to discard the claim. If the claim is approved, then the authority could issue an order to sanction the claimed amount to the mentioned bank account or Demat account of the claimant.

The authority is liable to process any application within 60 days of receiving from the nodal officer.

Why do You Need Legal Help?

As stated above, the application procedure to claim the refund of unclaimed dividends and lost shares is a difficult process. Your legal expert will take care of all the work and formalities required to file the refund application. It requires a certain degree of expertise to apply to the fund manager. Hiring a legal professional can help you to save yourself from this tedious task. If there are mistakes in an application, the IEPF authority straight away rejects it, and the claimant must repeat the whole procedure. Hiring a lawyer will ensure that there are no mistakes in your application so that the procedure goes on smoothly. From contacting the nodal officer to collecting the information for applying, the lawyer will take care of everything.

Hiring a lawyer will be extremely helpful if your shares are stuck in a family dispute. As mentioned, sometimes, the shareholder dies without any nominee, and he also forgets to put shares in his will. In such a case, all the family members of the deceased come to claim their right to the deceased’s property, i.e., ITC Shares. Not hiring a legal expert can cost you a fortune that you are entitled to. Why will people leave shares worth crores? If you are without a lawyer, then the other party will easily take your advantage and you will end up with nothing. A lawyer with the command of the law can protect you from all the loopholes which might go against you and thus, can provide you with the best deal possible.

The post How Recovery of Lost Shares of ITC from IEPF Can Make an Investor Crorepati Overnight! appeared first on MUDS.

Do you think 1 share of a company can give you more than ₹ 10 Lakhs? Yes, you read it right! Infosys has done the impossible. If your father or grandpa had bought 10 shares of Infosys during its IPO, then today, the value of those shares would be more than ₹ 1 Crore.

Curious to know about it? Here, I am going to discuss how you could earn a fortune if you just came to know that you owned 10 shares of Infosys in 1993.

About the Company

Infosys is an Indian MNC that provides the services of business consultation, information technology, and outsourcing. It was incorporated in 1981 as a private company. In 1992, it converted into a public company. The very next year, it got listed on the stock exchanges. It is the 2^nd largest Indian IT company after TCS with a market capitalization of ₹2,73,214 Crores. It has been growing exponentially.

It continued to generate profits during the setback of the COVID-19 pandemic and provided dividends to its members. Infosys has provided 2 dividends, in 2020-2021, of ₹12 and ₹ 9.50, accumulating to ₹ 21.5 per share. This means that if you would have purchased 10 shares in 1993, then you could have received a dividend of ₹ 2, 20, 160 in this year alone. You must be wondering how 10 shares could yield the said amount with the dividend of only ₹ 21.5 per share. All thanks to the bonus shares, Infosys has issued from time to time. Below is the calculation that will provide you an explanation.

Calculation

• Imagine that you or any family member in your previous generation has bought 10 Infosys shares during its IPO in 1993.
• The share was issued at ₹ 95. Thus, you invested a total of ₹ 950 in these shares.
• The company, in 1994, issued its first bonus shares in the ratio of 1:1.

[Bonus Shares are issued by the company to its shareholders as fully paid up shares without any cost. In other words, the company by issuing bonus shares gives a gift to its shareholders].

Issuing bonus shares at a 1:1 ratio means, that for every share owned by a shareholder, the company will issue another share in his name. This means that if you had 10 shares in the beginning, it has now become 20 shares.

• In 1997, the company again issued the bonus shares in the ratio of 1:1. Therefore, the 20 shares in your name have now become 40 shares.
• In 1999, the company again issued bonus shares at a 1:1 ratio. Now, your number of shares has increased from 40 to 80.
• The company, in the very next year, in 2000, due to an extreme rise in its share price, split up its stock in the ratio of 2:1.

[A company splits its stock when the share price of the share increases to a great extent and it becomes difficult for the retail investors or small investors to invest in the shares of such companies. By splitting the stocks, the company increases the number of shares in the market while decreasing its price by the same proportion. In this way, there is no change in the net value of the market capital.]

The same thing happened with Infosys. Its stock price shot up to a great height. To reduce the share price, and to make it easier for the retail investors to buy the stock, the company split its stock into 2. This means that for every share, the shareholder got 2 shares, worth half of the original 1 share. In simpler words, earlier, if you had 10 shares of ₹ 100 each, then now you have 20 shares of ₹ 50 each. Thus, no change in the net value of the shares worth ₹ 1, 000.

Due to the stock split, now your shares increased from 80 to 160.

P.S.: Do not confuse it with Bonus Shares. Because unlike Stock Spilt, the price per share does not decrease while issuing Bonus Shares.

• After that, the company has issued bonus shares 5 times to date.
• In 2005, the company issued bonus shares at a 3:1 ratio. This means that for every share owned by a shareholder, the company will issue another 3 shares in his name. This means that if you had 160 shares in the beginning, it has now become 640 shares. (160 Original Shares + 480 Bonus Shares)
• In 2007, the company issued another round of bonus shares at the ratio of 1:1. Now your shares are doubled in the amount. Thus, it has increased to 1, 280 shares.
• After the 8 years, in 2015, the company again issued the bonus shares at the ratio of 1:1. The shareholding of every shareholder got doubled, thus, the shares increased from 1, 280 to 2, 560.
• The very next year, in 2016, the company again issued bonus shares at a 1:1 ratio. Now, your number of shares has increased to 5, 120.
• Infosys last issued the bonus shares in 2019 at the ratio of 1:1. Thus, today, the number of Infosys shares you should own is 10, 240.
• Now, the price of 1 share of Infosys, as of 3^rd December 2020, is ₹ 1, 125. Thus, the value of your shares as of date is,

₹ 1, 125 x 10, 240 shares = ₹ 1, 15, 20, 000 (One Crore Fifteen Lakhs Twenty Thousand)

• The above amount is only the price of the shares. We have not calculated the dividends that you have received so far.
• Infosys is known for sharing its profits with its investors. To date, the company has paid an aggregate dividend of ₹ 722.25 per share.

Source: https://trendlyne.com/equity/Dividend/INFY/630/infosys-ltd-dividend/

Now you can calculate your dividends accordingly.

As you could see, if you had 10 shares of Infosys registered under your name in 1993, then you would have become a Crorepati today. Now the issue is that you are not in the possession of the shares of Infosys though you know that you are the rightful owner of the same. As per the Government’s rule, these shares are now treated as forgotten or lost shares because no one has claimed dividends on them for 7 years or more. Since the dividend remained unclaimed, the shares are now in the possession of the Government of India under the Investor Education and Protection Fund (“IEPF”). It was introduced in 2016 by the Government to resolve the issue of such ‘long lost and forgotten shares’.

About Investor Education and Protection Fund

As stated above, the Government introduced the IEPF to address the ever-increasing problem of people forgetting their shareholdings in a company. The IEPF was launched to promote the protection of interest, and awareness of the investors. The unclaimed dividend and lost shares transferred to this account are taken care of by the Government on behalf of the rightful shareholders. The dividends on the shares remain unclaimed for years because people tend to forget that they own the shares in the first place. There are multiple reasons why people forget about their ownership in a company:

• No Nominee: Usually investors do not appoint a nominee/ heir to take care of the shares after their death. Therefore, the shares remain deserted because the heirs are clueless about their ownership of such shares.
• Small Investments: Generally, the investment is of small amounts due to which an investor forgets about the shares.
• Property Dispute: Shares get attached to the court because proceedings are pending in the courts regarding the property dispute. Thus, the shares remain ownerless till the court’s verdict.

There are many other reasons why an investor forgets about his/ her shareholding in a company. This is the reason why many companies have abundant shares with them with no sign of ownership.

Before the introduction of the IEPF, the companies were required to transfer the unclaimed dividends and unclaimed shares to the government funds. The Government could then use such funds for various public welfare schemes and various developmental works.  Since the problem of people forgetting their shareholdings in a company was increasing, the Government realized that it was causing huge losses for the investors. Therefore, the Government decided to set up the IEPF.  It is a one-stop solution that the government provides to the members of a company. Here, the members can approach the government and claim their dividends. Along with that, they can ask them to refund their long-forgotten shares. The IEPF was initiated while keeping in mind the interests of the shareholders. IEPF protected the investors’ funds while spreading awareness regarding the same.

The Government takes care of the unclaimed dividend and lost shares transferred to this account on behalf of the rightful shareholders. Thus, even after 7 years, investors can claim their dividends and shares from the fund manager by applying to the managing authority. People can claim their dividends and shares of different companies through one platform instead of going to each company individually, that is why IEPF is known as a one-stop solution.

Provisions Governing IEPF

The functioning of IEPF is governed by the Companies Act, 2013 read with the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016. Once a company declares a dividend on the shares, the shareholders get 30 days to claim the said dividend. After 30 days, if the dividends remain unclaimed by the shareholders, then the company, according to the above-stated laws, is obliged to transfer such dividends to a special account. This special account is opened in the name of the company, known as ‘Unpaid Dividend Account’.

After that, the company gets 90 days to publish a list of all the shareholders along with their unclaimed dividends on its website. In addition to this, the company can use any other mode of communication to tell its members about their unclaimed dividends kept with the company. If a shareholder wants to retrieve his unclaimed dividend from the ‘Unpaid Dividend Account’, then he has to file an application to the transfer agent of the company. Despite all these, if a shareholder, for any reason stated above, fails to claim the amount from the company for 7 years, then the company shall transfer such unclaimed dividend to the IEPF Account. The shares on which such dividend was declared will also get transferred to the IEPF for they are considered as forgotten shares. Thus, if the dividends remain unclaimed for 7 years, then the dividend and shares, both get transferred to the IEPF Account.

Unclaimed Dividend & Unclaimed Shares of Infosys

We can see the transfer status of the unclaimed dividend and unclaimed shares to the IEPF from the Annual Reports of a company.

Funds & Shares transferred to the IEPF

According to the Annual Report 2019-2020 of the company, Infosys has transferred the following unpaid dividend and unclaimed shares to the IEPF during the last 3 Fiscal Years:

Source: https://www.infosys.com/investors/reports-filings/annual-report/annual/documents/infosys-ar-20.pdf

The company, in the previous 3 financial years, has transferred Five Crores Thirty-Three Lakhs Fifteen Thousand Eight Hundred Eighty-Nine Rupees (₹ 5, 33, 15, 889/-) of the unclaimed dividend to the IEPF Account.

Along with it, Infosys in 2019 alone, has transferred 8, 424 shares in the IEPF which are worth almost a crore. This is the data for only one year. The IEPF holds 0.1% shares of Infosys which accumulates to 2, 84, 487 shares. It is a huge chunk of unclaimed shares. The shareholders are thus advised to look into their investment history, or the ownership of shares passed on from a deceased family member and claim their dividends and shares from IEPF.

Funds & Shares to be transferred to the IEPF

The Annual Report 2019-2020 also provides the dates by which an investor can approach the Company’s Registrar or the Transfer Agent to claim dividends declared by the company from time to time. It also provides the amount of outstanding unclaimed dividends. After the expiry of the stated dates, Infosys will be forced to transfer the outstanding amounts of dividends, along with the shares, to the IEPF. 

The following table provides the information regarding the amount of dividend issued and the last dates by which the shareholders can claim those dividends.

For shareholders of Infosys:

Source: https://www.infosys.com/investors/reports-filings/annual-report/annual/documents/infosys-ar-20.pdf

The table above provides the deadlines to the shareholders of Infosys, to claim their dividends by applying to the Company’s Registrar or the Transfer Agent. After the due dates, provided in the 4^th column, Infosys will be forced to transfer the dividend funds (provided in the 3^rd column) to the IEPF, along with the respective shares.

An investor can check the status of their lost shares of Infosys, from https://www.infosys.com/investors/shareholder-services/transfer-equity-shares.html

For more information, visit https://www.infosys.com/investors/reports-filings/annual-report/annual/documents/infosys-ar-20.pdf

Unclaimed Shares & Lost Dividend under IEPF

If a shareholder has unclaimed shares and lost dividends in the name of IEPF, then he can approach the IEPF fund manager to refund the amount and transfer back the shares in the name of the claimant. The shareholder does not lose his/ her right over the dividend and the shares. Despite the fact, Infosys still encourages its members to claim the dividends on time from the company itself, to avoid its transfer to the IEPF Account. Infosys does this to avoid its members to go through the tiresome procedure of recovering the money and shares from the IEPF Authority. The fund manager follows this rigorous procedure to ensure that the shares get transferred to the rightful owner only. When shares remain unclaimed for such long periods, i.e., 7 years or more, they become prone to someone fraudulent transactions. Due to this, the fund manager makes thorough investigations before initiating the transfer of the amount and the shares. This thorough investigation makes it a time-consuming procedure and it becomes hard for the members to get back their shares. Hence, Infosys advises its members to claim dividends as it is comparatively easier.

For this purpose, the Nodal Officer, appointed by the company under the rules of IEPF, is A. G. S. Manikantha, Company Secretary has been appointed as the Compliance Officer and the Nodal Officer. To contact the Nodal/ Deputy Nodal Officer of Infosys, write an email to Manikantha_AGS@infosys.com.

Why do You Need Legal Help?

As stated above, the application procedure to claim the refund of unclaimed dividends and lost shares is a difficult process. It requires a certain degree of expertise to file the application to the fund manager. Hiring a legal professional can help you to save yourself from this tedious task. Your legal expert will take care of all the work and formalities required to file the refund application. If there are mistakes in an application, the IEPF authority straight away rejects it, and the claimant has to repeat the whole procedure. Hiring a lawyer will ensure that there are no mistakes in your application so that the procedure goes on smoothly. From contacting the nodal officer to collecting the information to filing the application, the lawyer will take care of everything.

Hiring a lawyer will be extremely helpful if your shares are stuck in a family dispute. As mentioned, sometimes, the shareholder dies without any nominee, and he also forgets to put shares in his will. In such a case, all the family members of the deceased come to claim their right to the deceased’s property, i.e., Infosys Shares. Not hiring a legal expert can cost you a fortune that you are entitled to. Why will people leave shares worth crores? If you are without a lawyer, then the other party will easily take your advantage and you will end up with nothing. A lawyer with the command of the law can protect you from all the loopholes which might go against you and thus, can provide you with the best deal possible.

Conclusion…

As we have seen, Infosys is very generous in issuing bonus shares to its shareholders from time to time. This generosity increased your 10 shares, bought in 1993, to 10, 240 shares in number. The company is growing exponentially every year. Its share price has increased from ₹ 95 to ₹ 1, 125 since its IPO. Therefore, if you just came to know about the existence of Infosys shares in your name, then it is the best time to square your profits. It is advised that you check the tables provided above and find the expiry date by which you can claim the dividend from Infosys. If not already transferred into the IEPF, then apply to the Nodal Officer as soon as possible. However, if your dividend amount and shares are already transferred to the IEPF, then find a legal expert as soon as possible. The legal professional will make your job very easy. He will also come in handy in case you want to fight for the shares stuck in a legal dispute.

The post Recovery of Infosys’ Shares from the IEPF can make you Crorepati Over A Night! appeared first on MUDS.

Shares of Nestle India were floating at a price of more than ₹ 18, 000 per share in the market as of 27^th November 2020. How would you feel if you suddenly come to know that you own some shares of this company? Amazing, right? Even a small number of 6 shares will fetch you an amount of more than ₹ 1 lakh.

Excited to know, how? Here, I am going to discuss how you could earn a fortune if you just came to know that there exist shares of Nestle India Ltd. in your name. If there are long-forgotten shares of Nestle India in the name of IEPF Account, which were in your name, then this blog is for you. 

History of the Company

Nestle India Ltd. is an FMCG (“Fast Moving Consumer Goods”) company that was incorporated in 1959. It is a Large Cap company with a market capitalization of ₹1,72,477.59 Crore (One Lakh Seventy-Two Thousand Four Hundred Seventy-Seven Crores Fifty-Nine Lakh Rupees). As of 31^st December 2018, the company earned revenue of ₹ 11, 294.65 Crores. The key products/ revenue segments that contributed to this revenue are as follows:

Even during the setback of the COVID-19 pandemic, it continued to generate profits due to which its share price kept on increasing. During the pandemic itself, the stock price has increased by ₹ 3, 500. In the last quarter, i.e., the quarter ended 30^th September 2020, the company has reported sales of ₹ 3, 525.41 Crores in the stated quarter alone. This is a 15.91% increase from the previous quarter, i.e., the quarter ended 30^th June 2020. The company has earned a net profit of ₹ 587.09 Crores after the tax deduction in the last quarter only. As per the quarterly report, the company has a total of 9, 64, 15, 716 (Nine Crore Sixty-Four Lakhs Fifteen Thousand Seven Hundred Sixteen) shares outstanding at the end of the last quarter.

Nestle India is known for giving its shareholders handsome dividends. To date, the company has given a total of 60 dividends to its shareholders amounting to ₹ 1, 292.5 per share. And in this year alone, the company has declared a dividend of ₹ 196 per share.

P.S.: This information regarding the dividend is based on the data provided from 2001 onwards.)

If you have 600 shares of Nestle India registered under your name, then the value of those shares as of the day would be in crores. The dividend amount alone would be in lakhs.

Calculation

• Suppose you have 600 shares of Nestle India Ltd. registered under your name.
• Now, the price of 1 share of Nestle India Ltd., as of 27^th November 2020, is ₹ 18, 040. Thus, the value of your shares as of date is,

₹ 18, 040 x 600 shares = ₹ 1, 08, 24, 000 (One Crore Eight Lakhs Twenty-Four Thousand)

• The above amount is only the price of the shares. We have not calculated the dividends that you have received so far.
• The amount of Dividend received so far (from 2001) is,

₹ 1, 292.5 x 600 shares = ₹ 7, 75, 500

• The amount of Dividend received in this financial year is,

₹ 196 x 600 shares = ₹ 1, 17, 600

As you can see, the shareholders of Nestle India have received a huge amount of dividends from the company. From 2001 onwards, the shareholders, so far, would have received ₹ 7, 75, 500 while in this year itself, they would have received ₹1,17,600. [According to the Hypothetical above]

Source: https://trendlyne.com/equity/Dividend/NESTLEIND/930/nestle-india-ltd-dividend/

Now, you can calculate your total dividend accordingly.

As you could see, if you had 600 shares of Nestle India registered under your name, then you would have become a Crorepati today. Now, just imagine that you invested in this company a long time ago and then you forgot about the existence of its shares. Or you have inherited some shares from your deceased family member, but you did not know about them. Due to this reason you did not claim any dividend on these shares for 7 years straight. In such a scenario, these shares are not in your possession anymore because they had been transferred to the IEPF account of the Government. This does not mean that you are no longer the rightful owner of those shares. The only difference is that the Government, on your behalf, is keeping your shares and dividend amount safe with them. You can always claim your lost shares and unpaid dividend from the Government under IEPF. The Government introduced this scheme in 2016 to resolve the problem of such ‘long lost and forgotten shares’.

About Investor Education and Protection Fund

The government started this scheme to educate the investors and protect them from losing their rights over the funds and the shares. When the investors used to forget about their shares, they used to get transferred to the Government Funds along with the unclaimed dividend amount. They could then be utilized by the Government for public welfare. Since the problem of people forgetting their shareholdings in a company was increasing, the Government realized that it was causing huge losses for the investors. Therefore, the Government decided to set up the IEPF.  It is a one-stop solution that the government provides to the members of a company. Here, the members can approach the government and claim their dividends and ask them to refund their long-forgotten shares. The IEPF was initiated while keeping in mind the interests of the shareholders. IEPF protected the investors’ funds while spreading awareness regarding the same.

The Government takes care of the unclaimed dividend and lost shares transferred to this account on behalf of the rightful shareholders. Thus, even after 7 years, investors can claim their dividends and shares from the fund manager by applying to the managing authority. People can claim their dividends and shares of different companies through one platform instead of going to each company individually, that is why IEPF is known as a one-stop solution.

There are various reasons why an investor tends to forget about its investment in a company:

• No Nominee: Usually investors do not appoint a nominee/ heir to take care of the shares after their death. Therefore, the shares remain deserted because the heirs are clueless about their ownership of such shares.
• Small Investments: Generally, the investment is of small amounts due to which an investor forgets about the shares.
• Property Dispute: Shares get attached to the court because proceedings are pending in the courts regarding the property dispute. Thus, the shares remain ownerless till the court’s verdict.

These are amongst many other reasons why an investor forgets about his/ her investment in a company. Due to these reasons, the dividends on the shares remain unclaimed for years and the companies end up with abundant shares lying with them with no sign of ownership.

Provisions Governing IEPF

The functioning of IEPF is governed by the Companies Act, 2013 read with the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016. Once a company declares a dividend on the shares, the shareholders get 30 days to claim the said dividend. After 30 days, if the dividends remain unclaimed by the shareholders, then the company, according to the above-stated laws, is obliged to transfer such dividends to a special account. This special account is opened in the name of the company, known as ‘Unpaid Dividend Account’.

After that, the company gets 90 days to publish a list of all the shareholders along with their unclaimed dividends on its website. In addition to this, the company can use any other mode of communication to tell its members about their unclaimed dividends kept with the company. If a shareholder wants to retrieve his unclaimed dividend from the ‘Unpaid Dividend Account’, then he has to file an application to the transfer agent of the company. Despite all these, if a shareholder, for any reason stated above, fails to claim the amount from the company for 7 years, then the company shall transfer such unclaimed dividend to the IEPF Account. If the dividends are not claimed for 7 years, then the shares on which such dividend was declared were considered as forgotten shares. Therefore, they also get transferred in the name of the IEPF. Thus, if the dividends remain unclaimed for 7 years, then the dividend and shares, both get transferred to the IEPF Account.

Dividends and Shares of Nestle India Ltd. in IEPF

The Annual Reports of a company state the current status of the dividends and shares of the company which are transferred to the IEPF account. According to the Annual Report of Nestle India Ltd. of 2019-2020, all the unclaimed dividends up to the financial year 1995-1996 which remained unpaid and unclaimed with the company were transferred to the Central Government’s general revenue account. As mentioned above, before the introduction of the IEPF, the companies were supposed to transfer the funds directly to the Central Government.

All the unclaimed dividends, from the financial year 1996-1997 to 2012-2013, remaining deserted with the company, along with the shares, were transferred to the IEPF Account in the name of the Central Government. The unclaimed dividends and shares were transferred to the IEPF pursuant to Section 124, Companies Act, 2013 read with Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016.

Unclaimed dividends declared by the company for the financial year 2012-2013 were recently transferred to the IEPF according to the Annual Report 2019-2020. The deadline to claim the dividends for the financial year of 2013-2014 will be given in the annual financial report of 2020-2021. In case a shareholder wants to claim his/ her dividends, then he/ she can approach the Company Registrar/ Transfer Agent of the Company with the required documents. The shareholders can reach out to the Company Registrar/ Transfer Agent of the Company at M/s Alankit Assignments Limited, Alankit House, 4E/2, Jhandewalan Extension, New Delhi, 110-055.

An investor can check the status of their unclaimed dividend, declared by Nestle, from https://www.alankit.com/searchmodule/search

For more information, visit https://www.nestle.in/sites/g/files/pydnoa451/files/2020-05/Nestle-India-Annual-Report-2019.pdf

Dividend transferred to the IEPF

According to the Annual Report 2019-2020 of the company, Nestle India has transferred the following unclaimed dividend to the IEPF during the Financial Year of 2019:

Source: https://www.nestle.in/sites/g/files/pydnoa451/files/2020-05/Nestle-India-Annual-Report-2019.pdf

In the previous financial year, Nestle India Ltd. has transferred an amount of Ninety-Eight Lakhs Twenty-Four Thousand One Hundred Seventy-Eight Rupees of unpaid and unclaimed dividend to the IEPF account of the Central Government. By looking at the amount of dividend, you can very well imagine the number of shares which lie unclaimed in the IEPF account. In the previous year itself, the company has transferred 4, 806 shares in the IEPF which amount to ₹ 8, 65, 08, 000. In total, the IEPF Account holds 0.1% of the total shareholding of Nestle India, i.e., 95, 575 shares. This amounts to ₹ 1, 72, 03, 50, 000. The shareholders, who forgot about their shares, are in loss of more than One Hundred Seventy-Two Crore Rupees.

P.S.: This amount is calculated by multiplying the shares transferred by the current price of the share.

95, 575 shares x ₹ 18, 000 = ₹ 1, 72, 03, 50, 000

As we can see, the amount of the unclaimed shares transferred to the IEPF account is more than a hundred crore. The company has a huge chunk of unclaimed shares in the IEPF. Thus, the shareholders are strongly advised to look into their investment history, or the ownership of shares passed on from a deceased family member and claim their dividends and shares from IEPF.

Unclaimed Shares & Lost Dividend Transferred to IEPF

Now, you might be wondering as to what happens to the shares and the dividend transferred to the IEPF. Do you still retain the right over the unclaimed dividend and the lost shares?

The short answer to that question is “Yes”. Yes, you do retain rights over the dividend and the lost shares, irrespective of the fact that the same has been transferred to the IEPF Account. As mentioned above, earlier it used to happen that the shareholder loses the rights over the dividend amount and the shares once they were transferred to the Government funds. But with the introduction of IEPF, a shareholder no longer loses his/ her right over the dividend amount as well as the shares. He/ She can apply to the fund manager to transfer the dividend amount accumulated and the shares back to the name of the original shareholder or the heirs of the same, as the case may be. Despite the fact, Nestle India still encourages its members to claim the dividends on time from the company itself, to avoid its transfer to the IEPF Account. The company sends individual letters, through posts and other modes of communication, to make their shareholders aware of their holdings in the company. Nestle India does this to prevent its members from going through the rigorous and tiresome procedure of recovering the money and shares from the IEPF Authority. The fund manager follows this rigorous procedure to ensure that the shares get transferred to the actual owner only. When shares remain unclaimed for a long period, i.e., 7 years or more, they become prone to someone fraudulently transferring them to his name. Thus, to avoid such fraudulent transfers, the fund manager makes thorough scrutinization of all the applications before initiating the transfer of the amount and the shares. Due to this thorough scrutinization, the procedure becomes time-consuming and it becomes hard for the members to get their shares back. That is why Nestle India recommends its shareholders to claim the dividends from the company from time to time as it takes less time and is an easy process. To claim the dividends, the shareholders have to apply to the Registrar or the Transfer Agent of the Company at the above-mentioned address. However, if your shares are already transferred to the IEPF, then you can approach the Nodal Officer, Balasubramaniam Murli, or the Deputy Nodal Officer, Pramod Kumar Rai, of the Company, appointed in this regard. To contact the Nodal/ Deputy Nodal Officer of Nestle India, write an email to Nodal.officer@IN.nestle.com.

The Necessity of Legal Help?

As stated above, the procedure to claim the refund of unclaimed dividends and lost shares from the IEPF Authority is a difficult and technical process. A certain degree of expertise is required to file the application to the fund manager. Hiring a legal professional can help you to save yourself from this tedious task. Your legal expert will take care of all the work and formalities required to file the refund application to the IEPF. If there are mistakes in an application, the IEPF authority straight away rejects it, and the claimant has to repeat the whole procedure. Your lawyer will ensure that there are no mistakes in your application so that the authority approves it without any objections. From contacting the nodal officer to collect information to filing the application with the authority, the lawyer will take care of everything.

Hiring a lawyer will be extremely helpful if your shares are stuck in a family dispute. As mentioned, sometimes, the shareholder dies without any nominee, and he also forgets to put shares in his will. In such a case, all the family members of the deceased come to claim their right to the deceased’s property, i.e., Nestle Shares in this case. Not hiring a legal expert can cost you a fortune that you are entitled to. Why will people leave shares worth crores? These disputes can take a long period of time to get settled. And if you are without a lawyer, then the other party will walk all over you and you will be left with nothing but pennies. A legal professional or a legal firm will represent you in all such disputes related to the ownership of the shares. A lawyer with the command of the law can protect you from all the loopholes which might go against you and thus, can provide you with the best deal possible.

Conclusion…

Nestle India is one of the largest and diverse FMCG companies with constant growth. Even this year, when everyone was struggling to cope up with the pandemic, the stock prices of this company managed to increase by ₹ 3, 500 per share. Due to this ever-increasing pace, the price of 1 share of Nestle India was floating at ₹ 18,000 per share. Therefore, it is the best time to sell some of your shares and secure a good profit. It might even help you to cope up with the financial difficulties, if any, that arose due to the pandemic. So, if you just came to know about the existence of any such shares in your name, which were left to you by your deceased family member, then it is the best time to claim them from the IEPF fund manager. In addition to your shares, you will also receive the dividend accumulated over time. I would advise you to check out the links mentioned above that will take you to the required section of the company’s website. Gather information regarding your dividends accumulated so far, along with your shareholding in the company, and file an application to claim your dividend from Nestle India Ltd. You will have to apply to the Nodal Officer of the Company, by contacting them at Nodal.officer@IN.nestle.com. If your dividend amount and shares are already transferred to the IEPF, even then you can claim the same by filing an application to the fund manager of the IEPF. For this, hire a legal expert as soon as possible and apply to the IEPF Authority for the refund of the unclaimed dividend and the recovery of the transferred shares. A legal expert will also help you to fight for the shares stuck in a family dispute.

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