How to Claim an Unclaimed Dividend?

If you've recently moved or haven't updated your KYC details with your stockbroker, you might be missing out on unclaimed dividends without even realizing it! Imagine receiving notice that an unfamiliar investment company has been trying to pay you dividends for years, but the checks keep bouncing back or going unclaimed. It's more common than you might think. Now, how to claim those dividends?

So why does this black hole of unclaimed dividends exist?

Poor investor awareness and neglect to update contact details are often to blame. Other reasons include mobility of the workforce, chain transfers of physical share certificates without proper records, forgotten legacy investments, complex product structures in capital markets, and lack of transparency in ownership records. However, companies, regulators, and depositories are now strengthening safeguards through compulsory PAN declaration, nominee registrations, digitization of securities, centralized KYC norms, and dedicated investor relations cells. Crucially, IEPF regulations offer ample opportunities for original owners or their legal successors to retrieve unclaimed dividends, equity shares, and funds transferred to the fund after seven years of dormancy. So, if your address changed while you held onto share certificates inherited from your grandfather or if you shifted overseas without dematerializing physical shares, there could be piles of uncashed dividend checks or unclaimed dividends with companies or transferred to the IEPF.

What Are Unclaimed Dividends?

Dividends represent the profits that companies distribute to their shareholders, typically disbursed quarterly or annually. However, these dividend payments could go unclaimed due to outdated address or bank details, expired checks, spelling errors, or simply forgetting about eligible dividends.

As per regulations, if shareholders fail to claim dividends within seven years, companies are obligated to transfer both the unclaimed dividends and the associated shares to the IEPF.

Searching for Unclaimed Dividends

1. With Your Stockbroker: Log in to your online account or contact customer service to check for any past corporate action notices for dividends with statuses like "Failure", "Invalid Address" or "Unclaimed". Update your details and request re-issuance of failed dividend payments.

2. Staying on Top of Corporate Actions: Set alerts for corporate actions to avoid missing dividend payment dates or updates to your details.

3. Searching Official Records & IEPF Data: Visit the MCA website to verify your holdings against companies' records and search your name in the IEPF database.

Filing Your Claim with IEPF

Follow these steps to recover unclaimed dividends from the IEPF:


1. Prepare Claim Form IEPF-5 & Documents: Fill and submit the form along with PAN card copy, Demat account details, canceled cheque leaf, and supporting documents.


2. Authorize Nodal Officer: Authorize a Nodal Officer of NSDL or CDSL to represent your claim.


3. Track Claim Status: Monitor the processing stages of your claim and respond to queries promptly.


4. Claim Disbursal: Once approved, you'll receive intimation of closure and the claimed amount will be disbursed to your preferred mode.

Common Questions Regarding the IEPF Claim Process

1. Processing Time: Usually within 60 days, but can extend to 90 days in exceptional cases.


2. Multiple Claims: You can claim multiple unclaimed amounts in the same form, with certain limits.


3. Limit on Cases: No restriction on the number of claims, but limits on the total amount per claim.


4. Joint Shareholders or Legal Heirs: Joint shareholders or legal heirs can file claims with proper documentation.


5. Claiming Unpaid Dividends: You can claim dividends up to 7 years from the declaration date.

Conclusion

Regularly checking and asserting your rights as a shareholder is crucial to recover unclaimed dividends. Simply get in touch with Share Samadhan and let them take the hassle while you can sit at home. The dedicated account manager is your answer to the question “How to claim unclaimed dividend?” Share Samadhan will help you in every step and you will be able to trace unclaimed money linked to your identity and claim it back swiftly.


Don't let your hard-earned money sit idle. Take action to reclaim what's rightfully yours!

Location: India

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