Unclaimed Shares & Dividends

Did your parents or grandparents invest in the stock markets? If so, they may have earned dividends on their investments that were never claimed. As of November 2023, the value of unclaimed dividends in India exceeded 5000 crores according to the Investor Education and Protection Fund (IEPF). If you suspect there are unclaimed dividends or shares in your family’s name, worry not. This guide will help you understand how to claim these unclaimed assets.

What Are Unclaimed Dividends and How Are They Managed?

In the Indian financial market, investors have various investment opportunities, but sometimes, dividends or redemption amounts go unclaimed. When an investor fails to cash in a redemption or dividend cheque before it becomes invalid, the amount is classified as unclaimed. However, unclaimed dividends do not disappear. They remain with the respective financial institutions until they are rightfully claimed.

After a certain period, unclaimed dividends and shares are transferred to the Investor Education and Protection Fund (IEPF), which is managed by the Ministry of Corporate Affairs.

Why Are Dividends Left Unclaimed?

There are several reasons why dividends may remain unclaimed in the Indian market:

Change in Address: Investors may not receive dividend cheques due to outdated address records.
Misplaced or Damaged Physical Share Certificates: Physical certificates can get lost or damaged over time.
Non-updation of Bank Details: If bank account details are not updated, dividends cannot be credited.
Death of the Primary Holder: If the primary shareholder passes away without informing their heirs, the dividends may remain unclaimed.

What Is the Investor Education and Protection Fund (IEPF)?

The Investor Education and Protection Fund (IEPF) was established to increase investor awareness and safeguard their interests against fraudulent activities in the financial markets. The IEPF also facilitates the process of refunding unclaimed dividends and shares that have been transferred to it. This ensures that rightful heirs or investors can recover their unclaimed assets.

How to Claim YourUnclaimed Dividends and Shares

If you believe you have unclaimed dividends or shares, Seriate Capital can assist you in recovering your wealth. The process of claiming these assets from the IEPF is straightforward, and we will guide you through every step to ensure you receive what is rightfully yours.

Contact us today to begin the process of reclaiming your unclaimed shares and dividends.