How to Claim Unclaimed Dividends with IEPF
What are Unclaimed Dividends?
Unclaimed dividends are those that the company is paying out to shareholders but which they have not yet accepted or claimed. Dividends that go unclaimed present a challenge for the business since the corporation is required to pay them out upon request.
Difference between “unpaid dividends” and “unclaimed dividends?”
People sometimes mix up unpaid and unclaimed dividends, despite the fact that they have separate definitions and concepts. If a shareholder does not claim a dividend, it is deemed unclaimed. Simply said, unclaimed dividends are dividends that the owner has not reported or made a claim for. Dividends that are not paid are the result of a mismatch in the dates of declaration and payment.
What is the process for transferring an unclaimed dividend account to the IEPF?
People sometimes mix up unpaid and unclaimed dividends, despite the fact that they have separate definitions and concepts. If a shareholder does not claim a dividend, it is deemed unclaimed. Simply said, unclaimed dividends are dividends that the owner has not reported or made a claim for. Dividends that are not paid are the result of a mismatch in the dates of declaration and payment.
Why are dividends left unclaimed?
There are several reasons why dividends may remain unclaimed. Several common reasons for unclaimed dividends in the Indian market are as follows:
1. Relocating abroad as an investment or changing addresses.
2. Physical share certificates that are broken or lost.
3. Investors dying away without leaving any information for their heirs.
4. Failure to update bank data associated with the Demat account.
A Step-by-step method to help you get your money back that hasn’t been claimed:
Step 1: Visit the IEPF website.
Navigate to the home page of iepf.gov.in. Select the “Claim Refund” option from the “Services” menu. On the left side of the “Claim Refund” tab, click the “Upload eForms” link.
Step 2: Register via the MCA Portal.
You’ll be sent to the MCA Portal, where you need to register. Once logged in, you need to choose “MCA Services” and then “IEPF-5.”
Step 3: Fill out the online form.
Enter all required information, including name and PAN number, dividend details, company information, bank account, demat account, etc., in the online refund claim form found on the IEPF website.
Step 4: Attach the Required Documents.
Include all required supporting papers, such as affidavits or indemnity bonds, that attest to your right to the investment in the company, together with your PAN card, Aadhar card, entitlement letter, cancelled check, and client master list for your demat account.
Step 5: Submit the Form.
The completed form must be submitted online to the IEPF Authority along with any required attachments. Upon submission, you will receive an SRN acknowledgement that will let you track the status of your claim.
Step 6: Provide physical documents to the Nodal Officer.
Together with any duly signed supporting papers, the completed form must be printed off and given to the company’s nodal person.
Step 7: The Verification Report has been submitted by the business.
Following receipt of the physical documents, an online E-Verification Report will be approved and sent to the IEPF Authority by the company’s Nodal Officer for review.
Step 8: IEPF Authority Approval.
After reviewing the claim, the IEPF Authority may request more supporting paperwork. Throughout the drawn-out verification process, you might need to follow up with the authorities to get updates. After verification, the IEPF Authority will send an approval email to the registered email account.
Step 9: Money Transfer and Refund Initiation.
If your claim is accepted and verified, the IEPF Authority will start the reimbursement procedure and credit your bank account with the money. A transfer of the shares to your Demat Account will occur.
