The affairs of the Company are managed by their Board of Directors but the owners of the Company are its shareholders.In order to protect the interest of the Shareholders of the Company, the Government of India has set up a Fund which is called Investor Education Protection Fund. The amount of grants and donation received from Government, unpaid dividend, matured deposits, matured debentures and interest thereon etc shall be credited to IEPF. The amount of fund shall be utilized for the refund, promotion and awareness activities and for other purposes.
Here we will study how to claim the amount of unpaid dividend and shares which has been transferred to IEPF. You can easily get the refund of the unpaid amount and shares by applying to the concerned authority of IEPF and complete the process of getting back to their unpaid dividend amount and the shares.
WHEN AMOUNT TRANSFERRED TO IEPF?
If the amount of unpaid dividend is not paid by Company or claim by the claimant within 30 days of declaration then the Company has to transferred the unpaid or unclaimeddividend amount to the separate account “Unpaid Dividend Account”.
Thereafter, the amount lying in the Unpaid Dividend Account does not claim by the claimant within the 7 years from date of transfer in Unpaid Dividend Account then the unclaimed dividend alongwith the shares has to be transferred in IEPF by Company.
Who can be the claimant?
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PROCEDURE FOR CLAIM OF UNPAID DIVIDEND AND SHARES
The following are the process needs to be taken to get the refund of unpaid Dividend and Shares transferred to IEPF.
- Make online application
Any person may claim their shares and unclaimed dividend by submitting online application in Form IEPF-5 alongwith the documents required to file to the authority of IEPF.After submission of online application, the applicant has to submit the application in physical form along with the original documents required to the Nodal officer at the registered office of the Company.
- Transfer of online application to the Nodal Offier
Every Company which has transfers the unclaimed amount and shares are required to nominate a Nodal officer for verification of the claim. The Company may appoint one or more officer as Deputy Nodal officer for the assistance of the Nodal Officer.
The IEPF authority shall transfer the online application of the applicant to the Nodal officer of the Company upon submission of the application for verification of claim.
- Submission of online verification report
It is a responsibility of the Nodal office to submit the online verification report within 30 days of receipt of claim to the Authority alongwith the scanned copy of the original documents submitted by applicant. The Authority may reject the claim if the Verification Report not received within 60 days from the date of filing of Form IEPF-5 by claimant.
- Refund order
The application for refund will be disposed by the Authority within 60 days of receipt of verification report.
After the verification of the entitled of claim, the Drawing and Disbursement Officer of the Authority shall present a bill to the Pay and Accounts Office for e-payment and the refund sanction order will be issued by authority with the approval of the Competent Authority and credit the shares to the DEMAT account of the claimant.
DOCUMENTS REQUIRED FOR CLAIMING REFUND
The following documents are required to be submitted in physical form to the Nodal Officer.
- Application for refund in IEPF-5;
- Original Share Certificate/Proof of entitlement;
- Indemnity Bond;
- Advance receipt;
- Identity proof and residence proof the claimant;
- Any other documents required;
Note: Every document should be self-attested by claimant.