Procedure for Claiming Unpaid/Unclaimed Dividend From IEPF

As per Section 124 of the Companies Act, 2013, in case a company has declared any dividend but the same has not been claimed within 30 days from the date of declaration, the company shall transfer the total amount of unclaimed dividend to Unclaimed Dividend Account which is opened specifically for this purpose with a scheduled bank.

For the purpose of public dissemination, the company shall within a period of 90 days of such transfer, upload a list containing the names, addresses and amount of unpaid dividend on their website.

Thus, an individual who has not been able to claim the amount of dividend for any year may apply to the company to claim the dividend for a year of 7 years from the date of such transfer by the company to the unpaid dividend account.

What happens after 7 years ?

After 7 years of such transfer, the Companies Act,2013 provides for transfer of such amount along with the underlying shares on which the dividend was declared to a fund established by the government known as “Investor Education and Protection Fund”(IEPF)..

Can Individuals claim their shares and dividend from IEPF?

Yes, Individuals can claim their shares and amount of dividend along with the interest, If any, from the fund by following the procedure mentioned below:

1) Search unclaimed/Unpaid amount by entering your Name and your Father’s Name or by using your DPID on the IEPF Website (iepf.gov.in)

2) Download E-FORM IEPF-5 from the IEPF Website (http://www.iepf.gov.in/IEPF/refund.html) and submit it on Mca21 portal (mca.gov.in)

3) Print the form after filing it and submit the form along with the relevant documents (Mentioned Below) to the Nodal Officer of concerned company.

4) The Company shall thereafter verify the claim and furnish the verification report to the IEPF authority within 15 days of such receipt.

5) On the basis of such report, the IEPF shall release the amount in favour of the claimant through Electronic transfer.

Documents Required to be submitted physically to the company

1. Print out of duly filled claim form with claimant signature

2. Copy of acknowledgement

3. Indemnity Bond (original) on a Non-Judicial Stamp Paper if amount exceeds Rs.10,000 with claimant signature.(Format Attached Below)

4. Advance Stamped receipt (original) ( Format attached below)

5. In case of refund of matured deposit or debenture, original certificate thereto

6. Copy of Aadhaar Card and Pan Card.

7. Proof of entitlement (certificate of share/Interest warrant Application No. etc.)

8. Cancelled Cheque leaf

9. Copy of Passport, OCI and PIO card in case of foreigners and NRI

Advance Receipt

Received from the Investor Education and Protection Fund Authority the sum of Rs…………… and No. of Shares ……………… being the amount and shares payable to me from the Investor Education and Protection Fund as …………. (Dividend on Equity / Preference shares / matured deposits / matured debentures / application money due for refund / interest accrued on……………………./Dividend credited to IEPF under Companies Act, 1956 or Companies Act, 2013/ Dividend credited to General Revenue Account under Companies Act, 1956 / others, specify………….)# which was originally due from

M/s……………………………………………………………………..(Name of the Company)

Signature of claimant with date

Stamp (Affix Revenue Stamp)

Signature of witness:

1. Signature with date

Name

Address

2. Signature with date

Name

Address

* Please ensure to affix Revenue Stamp with crossed Signature to avoid delay in processing of the claim

# Strike off whichever is not applicable

Indemnity bond

To

The Investor Education and Protection Fund Authority

………………………

In consideration of the payment of Rs .……………. and No. of shares……………….. being the amount and shares due to me as …………………… (Dividend on Equity / Preference shares / matured deposits / matured debentures / application money due for refund /interest accrued on……………………./Dividend credited to IEPF under Companies Act, 1956or Companies Act, 2013/ Dividend credited to General Revenue Account under Companies Act, 1956 / others, specify………….)# for the Financial Year……………….. from M/s ……………………………………….(Name of the Company) out of the Investor Education and Protection Fund by the Authority, I …………………………….son /daughter /wife# of ………..…………………. do hereby agree and undertake to indemnify the Investor Education and Protection Fund Authority to the extent of any claim not exceeding the amount herein before mentioned which may be preferred against the Investor Education and Protection Fund Authority, and which it has to lawfully discharge.

Signature

Date:

Place:

Witnesses:

1.Signature with date

Name

Address

2.Signature with date

Name

Address

* For ensuring timely processing of the claim, please ensure to make all the entries

# Strike off whichever is not applicable

The information provided herein is for educational purposes only and the author assumes no responsibility or liability for any errors and omissions in the content.