The IEPF was established by the Government of India to solve the growing problem of people forgetting their shareholdings in a firm. This initiative was established to defend investors' interests and raise awareness among them.
All iepf unclaimed shares & iepf unclaimed dividends and lost shares sent to IEPF on behalf of lawful shareholders are handled by the government. The biggest reason why shares go iepf unclaimed shares year after year is that individuals forget they hold them! How can anyone overlook their own investments?
Here are some of the reasons why this occurs!
Investors frequently fail to select a candidate for their shares. The heirs are unaware of any such ownership. Finally, the shares are abandoned.
Because the amount invested in shares is little, investors tend to overlook it.
In certain situations, the shares become embroiled in legal processes as a result of property disputes. In such cases, the shares stay ownerless until the ultimate court decision.
Whenever the IEPF was not implemented, firms contributed iepf unclaimed shares iepf unclaimed dividends and shares to government funds. This money was utilised by the government for a variety of public welfare programmes. The monies were also utilised for a number of development projects.
Subsequently, the government recognised the heavy losses incurred by investors and decided to establish the IEPF. This functioned as a forum for investors to contact the government in order to claim their payouts. They can even get their long-forgotten shares refunded. The IEPF allowed investors to obtain dividends and shares directly from the fund management. All they had to do was make an application to the controlling authority. Instead of contacting each firm separately, people may now claim their dividends and shares from several companies through a single site.
IEPF Unclaimed Shares & IEPF Unclaimed Dividend Transferred to IEPF
So, what happening to the shares and dividends that have been transferred to the IEPF? Will investors lose their rights to their iepf unclaimed dividends and iepf unclaimed shares?
The dividend sum and shares were handed to the government prior to the creation of the IEPF. As a result, a shareholder lost all rights to the dividend money. The establishment of the IEPF enabled owners to retain control over the dividend amount and shares transferred to the IEPF Account. A simple application to the IEPF's fund management will assist in keeping these privileges.
Reputable firms, such as Bajaj Finance Ltd., send individual letters, by post, and through numerous other forms of contact to inform shareholders of their stake in the company. Their staff will remind stockholders to file their dividend claims on time. Once shares have been moved to the IEPF, the procedure of reclaiming them may become difficult.
The fund manager's entire refund procedure is time-consuming. To guarantee that the reimbursement reaches the correct owner, all applications are thoroughly reviewed. As a result, Bajaj Finance Ltd. advises shareholders to collect the dividend directly from the firm. The procedure is simple and quick. To claim dividends, shareholders must submit an application to the Company's Registrar or Transfer Agent.
If the shares have already been transferred to the IEPF, simply approach the company's Nodal Officer. You can contact the appropriate authority through email.