How to keep shares active, regain unclaimed shares

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Many people invest but they do not inform their family about their investments and when they pass away, these shares remain unaccounted for years. After some time, they are considered unclaimed and are transferred to government accounts.

If you also have unclaimed shares, we will explain to you how to get them back in 9 points.

1. When are your shares or dividends are declared unclaimed?

It can happen in several situations such as if you forget after investing, if the investor passes away and his family is not informed about this investment, if the documents related to shares are lost, if the bank account receiving dividends becomes dormant etc.

2. After how long is investment considered unclaimed?

According to the rules, if the dividend received on shares is not claimed for seven years or more then it is considered unclaimed.

It doesn’t matter whether they are kept in the demat account or in physical form.  Unclaimed shares and dividends are transferred to the Investor Education and Protection Fund (IEPF).

3. When is the investment amount transferred to IEPF?

If the dividend received on shares is not  claimed for seven years then shares are transferred to the Investor Education Fund.

Suppose the investor’s bank account has some issue, or for some reason, the amount of dividend does not gets deposited and it goes back to the company then after seven years, the company considers the dividend and shares as unclaimed and transfers them to the Investor Education and Protection Fund.

However, before transferring unclaimed shares to IEPF, the investor is informed.

4. Who can claim?

Investor or their legal heirs can claim unclaimed shares and dividends in government accounts after the investor’s death.

For this, the investor or family members need should have all the documents like physical share certificates, dividends, allotment letters, etc.

5. How to claim unclaimed shares or dividend amount?

Visit the Investor Education and Protection Fund (IEPF) website www.iepf.gov.in. lick on Search Unclaimed/Unpaid Amount to get information about unclaimed amount. For this, information like investor’s name, folio number, DP id-Client Id, Account Number is required.

6. Which form to fill?

To claim a refund from IEPF, you need to fill out Form IEPF 5 by clicking on Claim Refund.

7. Now, let’s look at documents needed to claim

To claim unclaimed shares and dividends, you need Aadhaar card, client master list of demat account, share certificate in proof of entitlement, dividend warrant, transaction statement, Notarized copy of death certificate in case of shareholder’s death, Succession certificate, Will or probate and NOC from other holders as well as indemnity bond.

8. What happens after submitting all the papers?

After submitting the IEPF 5 application, a service request number (SRN) is issued. Submit the filled IEPF 5 form along with the indemnity bond, acknowledgment form, and other documents to the appointed nodal office of the company.

9. When will you get the claim after the company’s approval?

After the company approves the application, the refund will be issued by the Investor Education and Protection Fund and the shares will be transferred to the legal heir’s demat account. According to market regulator SEBI, more than 70% of the 13.6 crore demat accounts with single holders, i.e., 9.8 crore demat accounts, do not have nominee details. This could create difficulties for legal beneficiaries to claim shares or dividends.

If you do not have a nominee in your demat account, update it by 30th June. Keep an eye on the status of your bank account to prevent shares from becoming unclaimed.

If you receive dividends through a dividend cheque, keep your address updated with the company.