How to Claim Your Unclaimed Dividend,Deposit,Benefits due on Investments & Others after Seven Years or More

Investor Education & Protection Fund Awareness

Yesterday as I was scrolling my facebook wall a post grabbed my attention, in the post a senior citizen was asking for advice as, "how to claim his deposit from a bank which was unclaimed from last 8 years". He further added that bank said that the amount is no longer available with them and he has to apply to MCA (Ministry of Corporate Affairs) etc.

This post was not just the one of its type, but then I found their were many people who were in the same situation. Most of them were either senior citizens or single women. So this blog will provide you the details as how can you claim your Unclaimed Shares, Unpaid Dividend, Mature Deposit or Debentures ,Benefits due on Investments & Others after 7 Years or More.

Background 

As investors or depositors we invest in securities and deposits with companies and financial institutions for long term investment plannings. In return we get benefits like dividend, interest, bonus shares, maturity redemption amount etc. Many a times we forget to claim these benefits for one or the other reasons, on the other hand the respective companies and financial institutions are also not able to transfer us the benefit and intimate us for the same. The reasons can be numerous like, change in address, contact details, closure of bank account etc. 

In pursuant to section 125 of the Companies Act, the companies and financial institutions have to transfer the respective amount & securities to "Investor Education & Protection Fund" after seven (7) years of their accrual. 

Any person, whose shares, unclaimed dividend, matured deposits, matured debentures, application money due for refund, or interest thereon, sale proceeds of fractional shares, redemption proceeds of preference shares, etc. has been transferred to the Fund, may claim the shares under provision to subsection (6)  of section 124 of the Companies Act or apply for refund, under clause (a) of sub-section (3) of section 125 of the Companies Act or under proviso to sub-section (3) of section.


Investor Education and Protection Fund Authority

Investor Education and Protection Fund Government of India has on 7th September, 2016 established Investor Education and Protection Fund Authority under the provisions of section 125 of the Companies Act, 2013.

The Application can be made to Investor Education Protection Fund (IEPF) for :

1.  Refunds of shares
2.  Unclaimed dividends
3.  Matured deposits/debentures
4.  Interest on (3) above
5.  Application Money due for Refund
6.  Sale proceed of Fractional Shares (Bonus share, merger & amalgamation)
7.  Redemption amount of Preference Share unclaimed,
8.  Other amount as may be prescribed; etc.

 

How to file the Claim with IEPF ?

The person in respect of whom any amount is transferred to the IEPF, can make an application by filing Form IEPF-5 with the IEPF authority set up by MCA (Ministry of Corporate Affairs) and then have to follow he procedure laid down after filing of form.

There is NO FEE currently for Form IEPF-5.

Steps to Follow :

1) Go to Investor Education Protection Fund IEPF Website - www.iepf.gov.in (as shown in picture below).

 

2) Click on "Forms" Menu over the Menu Bar (as shown in picture above).

3) From the "Form Window" - Click and Download "Form IEPF 5 with Instruction Kit" (as shown in picture below). 

4) Fill the Form IEPF 5

• Be very careful for filling the details in the form as you can correct any discrepancy in the form only once.
• Read the instruction kit very carefully & thoroughly.
• Fill the same details as submitted to the company or institution at the time of making investment.
• If facing any issue than take the service of a professional service provider like CA, CS, Corporate Lawyer in Practice.

5) Upload the Form.

• Go to Investor Education Protection Fund IEPF Website.
• Click on "Forms" Menu over the Menu Bar (as shown in the picture above).
• Select "Form Upload" from the drop-down menu.
• You will be redirected to MCA21 for form Upload (as shown in picture below)
• Login using your ID and Password (if existing or else register yourself by clicking on register and entering the required details). 
• After login, click on normal upload.
• Click on Browse and attach the form. Click on Submit. 
• SRN will be generated and you will ask for payment option (Pay Now or Pay later). 
• Though Fee will be zero, but click on Pay now option only to generate the acknowledgement.
• After clicking on Pay Now, you have to click on Finish when zero fee page will be shown. Acknowledgement will be generated. Secure the acknowledgement for future. 

6) Follow the Procedure laid down after filing the Form IEPF5.

In this way one can claim the unclaimed dividend, deposit, benefits due on Investment & others after seven years or more. Any comment and suggestion is most welcome. Share with your friends and family. For any query or assistance feel free to comment.

Disclaimer :

The above blog is purely for educational and  guidance purpose. It's just the reflection of the author's personal experience and judgment. The author has just provided the general information & understanding and its not at all an alternative of any legal advice or practitioner. It has no connection with the websites mentioned in its contents. The content stated in the blog should be used by the reader at his own discretion and sole responsibility. The content of the blog can be only used for any other document, write-up, article, blog and any written or printed material whether on paper or digitally in any form, with the prior permission of the author.