Some basic information on unclaimed dividend transfer to IEPF

 


There are many people out there who need to reclaim any shares, dividends, debentures, deposits, and mutual funds that never reach them. They have ended up losing or misplacing their documents and certificates or they might have completely forgotten about them. In this case, a question might arise on how to find any unclaimed dividend. It can be a difficult task to regain these types of benefits since most of us do not have adequate knowledge of the procedure that has to be performed.

What exactly is IEPF?

IEPF (Investor Education and Protection Fund) is meant to promote the investors’ interests in the country. Any dividend which is unclaimed or unpaid for 7 years from the transfer date to a special account will be transferred to IEPF along with interest.


Which amount is transferred to IEPF?


Unclaimed dividend transfer to IEPF consists of the following:

•             The amount in the companies’ unpaid dividend account which remains unclaimed or unpaid                     
for 7 years

•             Matured deposits with organizations apart from banking companies

•             Any other income or interest obtained out of investments done from the fund

•             Matured debentures with organizations

•             The sum of money lying in the IEPF under section 205C of the 1956 Companies Act

•             The redemption amount of any unpaid or unclaimed preference shares for at least 7 years


Is it possible for the investor to claim shares or dividends from IEPF?

In the year 2016 on 5th September, Investor Education and Protection Fund Authority were notified by the Ministry of Corporate Affairs regarding Rules 2016 that enables the claimants to make an IEPF claim for getting a refund.

It will be possible for investors whose unclaimed dividends, shares, debentures, matured deposits, interest, or application money has been moved to IEPF to look for a refund. The claimant has to file form IEPF-5 together with the required documentation on the official website of IEPF for claiming such an amount.

 

 


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