In terms of Section 124(6) of Companies Act, 2013 and the applicable rules notified there under, the shares in respect of which dividend has not been paid or claimed for a period of seven consecutive years or more, are required to be transferred by the Company to the Investor Education and Protection Fund i.e. IEPF Authority.
Based on the information received from the concerned companies, the following shares held by you in demat account XXXXXXXXXXXXXX with ZERODHA BROKING LIMITED are due for transfer to the IEPF Authority :
|ISIN|COMPANY NAME|NO. OF SHARES|Name of RTA|
|INE124G01033|DELTA CORP LIMITED|please check with RTA|Purva Sharegistry (India) Pvt Ltd|
In light of the above, you are requested to kindly update your bank details on an urgent basis with your Depository Participant (DP) to enable the remittance of any unclaimed dividends held by the company. This may also help prevent the transfer of your shares to the IEPF Authority.
We also request you to update your bank details in any other active demat accounts held by you. The details of the same may be obtained from the Consolidated Account Statement (CAS) which contains details of securities held by the investor across all demat accounts and Mutual Funds held in physical form.
Unpaid or unclaimed dividends, along with the corresponding shares, are transferred to the Investor Education and Protection Fund (IEPF) Authority by companies when they remain unclaimed for seven consecutive years. This transfer ensures that these assets are safeguarded and can be claimed by the rightful owners later.
Seven-Year Threshold:
If a dividend declared by a company remains unpaid or unclaimed for seven years, the company is required to transfer the unclaimed amount to the IEPF
Claiming Process:
Shareholders can claim their unclaimed dividends and shares by submitting an application to the IEPF Authority, usually through a specific online form (IEPF-5) available on the IEPF website.
Transfer of Shares:
Additionally, all shares for which dividends have not been paid or claimed for seven consecutive years or more are also transferred to the IEPF
Maybe you didn’t receive the dividend due to incorrect bank details? OR KYC is pending? OR the bank account no longer exists? Please check your bank details and also create Zerodha support ticket for the same.
Once the shares are transferred to IEPF, it is a painful and tiresome journey. You will need to consult a company for IEPF share retrival as doing it oneself is near impossible. I know this because i am currently in the process of retrieving shares from IEPF. To file various paperwork and it will take atleast 12 months to get your shares back.
Solution: If the shares havent already been transferred and can still be sold, pls sell the shares. For doing this you will need to link an active bank account of the PAN card holder who is registered in the broker account.
Even if PAN is not linked you can sell the shares and it will go into the broker cash balance which you can withdraw after linking the bank account. May I ask which broker the shares are held with to be able to provide a more detailed answer?
In which case shares are unclaimed? I understand the case of dividend amount unclaimed but what is shares unclaimed? Shares are stored in Demat account so in which case shares will be unclaimed? Sell of shares with no active bank linked?
Only reason I can think of is that at some stage the bank account linked to the zerodha account was closed. Therefore dividend amount could not be credited and was therefore reported as unclaimed.
If a company has declared a dividend and it remains unclaimed for 7 years, then under government rules the shares must be transferred by the broker to IEPF. Perhaps now he is unable to transact because zerodha kyc is not done. OP should create a support ticket with zerodha for more info.
CDSL has sent SMS and email to clients listing the ISIN/stock name for which dividends remain unclaimed. Please refer to the communication received and approach the respective company’s RTA to claim the dividend.
In case there is a mismatch between the bank details in your demat account and those with the RTA, please share a Client Master Report (CMR/CML) with the RTA and request them to fetch the updated details from the depository records.
Based on the information received from the concerned companies, the following shares held by you in demat account 1XXXXXXXXXXXXXXXXXX with ZERODHA BROKING LIMITED are due for transfer to the IEPF Authority :
In light of the above, you are requested to kindly update your bank details on an urgent basis with your Depository Participant (DP) to enable the remittance of any unclaimed dividends held by the company. This may also help prevent the transfer of your shares to the IEPF Authority.
We also request you to update your bank details in any other active demat accounts held by you. The details of the same may be obtained from the Consolidated Account Statement (CAS) which contains details of securities held by the investor across all demat accounts and Mutual Funds held in physical form.
I had received the similar email , In my case I don’t have any shares of this stock with me .
