Investor Education and Protection Fund (IEPF) has been established under Section 205C of the Companies Act, 1956 by way Companies (Amendment) Act, 1999 for promotion of investors’ awareness and protection of the interests of investors. Later, The IEPF Authority was set under section 125(5) of the Companies Act, 2013 to administrate the IEPF fund and making refunds of shares, unclaimed dividends, matured debentures and other deposits etc. to investors, promoting awareness among investors.
Before September 2017, the unpaid and unclaimed dividends which have not been claimed for the 7 consecutive years from the date of declaration of dividends were required to be transferred to IEPF Authority.
From September 2017, all the shares on which dividends have not been claimed for 7 consecutive years from the date of declaration of dividends, is required to be transferred to the DEMAT account of IEPF Authority along with the dividends. Such shares & dividends will be categorized as “unclaimed” by the company and accordingly, the said shares and dividend is transferred to IEPF.
Thousand crores of such dividends and shares are lying with IEPF Authority waiting for the investors to claim.
An investor can claim his/her shares/dividend back from IEPF Authority by filing web based IEPF form-5. Only one form one company basis is allowed in a year and if, due to any reason the form has been rejected, then an investor shall have to wait for another one year.
In order to get the shares back from IEPF Authority, an investor has to go through the numerous procedures & formalities to get the entitlement letter and then he/she has to approach the Nodal officer of the company to get the verification done and then ultimately, approach IEPF Authority to get his/her shares back.
In case shares are held with multiple companies, he/she needs to follow the complete procedure multiple times.
Expert team of The Wealth Finder will assist you to claim these shares/dividends back from IEPF Authority and will also assist you to track any such shares/dividends whose records or any ownership proof is not available with you.
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