Recovery Of Unclaimed Dividend Transfer To IEPF

As per the Accounting, Audit, Transfer, and Refund Rules, 2016, companies must provide information about their unclaimed dividend. The rule deals with the transfer and refund of dividends. A host of reasons are responsible for the emergence of this kind of situation. Some of them include the shareholder's death, address change, and loss of dividend warrant.

Gain an insight

When a company earns a surplus, it distributes a proportion of its profits to its shareholders as a dividend. The quality and quantity to be declared are decided by the Board of Directors. 

• Know the differences

The declaration may take place in the form of a final or interim dividend. The interim dividend is announced before the finalization of accounts, whereas the final dividend is paid after the finalization of accounts. The payment is made at a pre-determined rate. An unpaid dividend refers to the dividend announced but not yet paid to the stockholders. Unclaimed dividend refers to the dividend paid but not yet claimed by the shareholder. It is a liability of the company.

• About the objective

The primary objective of the government of India is to create the Investor Education and Protection Fund (IEPF) to protect the investors so that they retain control of their stock. On numerous occasions, investors failed to appoint a nominee for their holdings. Upon the death of the investor, the investments get transferred to the government. The sum includes unclaimed dividends if any. Unless the heirs establish their claim, the government of India may use these funds in a way that seems appropriate.  

• Seek the assistance of experts

IEPF aims to encourage investors to establish contact with the government so that they can demand a refund of their long-forgotten shares. Obtain assistance from professionals specializing in unclaimed investments for matters concerning Unclaimed Dividend Transfer To IEPF. The main goal of IEPF is to protect the monies of shareholders’ by keeping their best interests in mind. They want the shareholders to become aware of the issue.

• Claiming for refund

Investors have the right to petition the government to get unclaimed dividends up to seven years from the date they are lost. In general, people take up the matter with the relevant companies. They gather all the information they require for the collection of their dividends. The IEPF acts as a single platform through which the general public can make claims to countless companies, provided they are the rightful heirs. The committed team of experts can assist you recover IEPF unclaimed dividend.

Taking a wise decision

You should use the online platform to conduct extensive research about the companies specializing in blocked investments. Do not rush through the decision-making process. Otherwise, you will make a wrong choice and fail to have your desired outcome. The company you have in mind should be an established name in the industry. Check the testimonials of past clients before arriving at a decision. The company should have financial experts with adequate skills and extensive experience in this line of work.  

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