To protect the interests of investors in securities and to promote the development of, and to regulate the securities market and for matters connected therewith or incidental thereto, the central government (GOI) has established a fund to be called Investor Education and Protection Fund [IEPF]. The provisions of sub Section (5) (6) & (7) of section 125 of the Companies Act, 2013 are effective from 13th of January, 2016 vide MCA Notification issued by Central Government.
Following amounts shall be part of IEPF, if they remain unpaid for a period of seven years from the date of declaration except point (f) and (g)
- Amounts in the unpaid dividend accounts of companies;
- The application moneys received by companies for allotment of any securities and due for refund;
- Matured deposits with companies;
- Matured debentures with companies;
- The interest accrued on the amounts referred to in clauses (a) to (d);
- Grants and donations given to the Fund by the Central Government, State Governments, companies or any other institutions for the purposes of the Fund; and
- The interest or other income received out of the investments made from the Fund.
When amount get transferred to IEPF?
Any money transferred to the Unpaid Dividend Account of a company in pursuance to section 124(5) which remains unpaid or unclaimed for a period of seven years (7 year and 37 days from the date of declaration of dividend) from the date of such transfer shall be transferred by the company along with interest accrued, if any, thereon to IEPF.
IEPF - Claim Your Unpaid Dividend and Shares
In case you or your family/friends have funds lying with IEPF, it is time to track and claim your dues.
Crores of rupees in unclaimed money - right from old Equity Shares amounts to share application money, Dividend, Debentures, Interest accrued thereon and many more - is piling up but rightful owner are yet to understand the procedure to claim back from Govt fund.
Several reasons for dividend does not get claimed
- Lost track of the funds owed to you.
- Company/financial institution might have failed to locate Shareholder for dividend payment as contact and bank details change over the years but are not updated with the company.
- You were not aware of the investments made by your parents; neither you had the complete records of those investments.
- Even nominees and legal heirs may fail to stake a claim if they are not aware of such assets - it is often the case if one dies without making a will.
The process of claiming investment back from IEPF is cumbersome and long legal process involving form filing and serious continuous follow-ups with authorities. But we should be happy with the fact that at least our investment in IEPF is safe with Government rather than being victimized with a fraudulent withdrawal of investment likesharepro case.
We are assisting all investors for getting back there and dividend share from Government of India (GOI). The process for receiving the shares back from GOI is tedious and long legal process that we have to comply with. In case, you need the assistance for same, you are advised to contact us for the services and join hand with us.