What is Investor Education and Protection fund and why shares are transferred to IEPF?
Recovering Shares Transferred to the Investor Education and Protection Fund (IEPF)
Reason for Transfer: Shares are transferred to the IEPF (Investor Education and Protection Fund) when the rightful owner fails to claim or receive dividends, entitlements, or any other benefits associated with the shares for a prescribed period. This transfer is done by the provisions of the Companies Act, 2013.
Holding Period: The specific holding period after which shares are transferred to the IEPF may vary depending on the nature of the shares and the regulations set forth by the Ministry of Corporate Affairs (MCA). Typically, it ranges from seven to ten years of continuous non-payment or non-communication from the shareholder.
Custody and Management: Once transferred to the IEPF, the shares are held and managed by the IEPF Authority. The authority ensures the protection and preservation of the transferred shares until they are claimed by the rightful owner.
Shareholder's Rights: When shares are transferred to the IEPF, the shareholder loses certain rights associated with the shares. This includes the right to receive dividends, attend shareholders' meetings, exercise voting rights, and transfer the shares.
Claiming Transferred Shares: Shareholders who wish to reclaim their shares from the IEPF can follow the prescribed procedure outlined by the Ministry of Corporate Affairs. This typically involves submitting a claim form, providing supporting documents, and meeting the eligibility criteria set by the IEPF.
Claim Period: The IEPF provides a specific timeframe within which shareholders can claim their transferred shares. It's crucial to adhere to this timeframe and initiate the claim process promptly to ensure a successful recovery of the shares.
India for NRI helps clients in the recovery of unclaimed shares or shares of their relatives from the IEPF Authority by professionally filing the forms and arranging for all the documents required to file the form.
Unclaimed asset recovery services help investors recover unclaimed dividends, shares, or other unclaimed assets such as unclaimed inheritance or unclaimed property. We also assist with unclaimed inheritance search for those seeking to trace lost or forgotten inheritance and unclaimed inheritance money.
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Reason for Transfer: Shares are transferred to the IEPF (Investor Education and Protection Fund) when the rightful owner fails to claim or receive dividends, entitlements, or any other benefits associated with the shares for a prescribed period. This transfer is done by the provisions of the Companies Act, 2013.
Holding Period: The specific holding period after which shares are transferred to the IEPF may vary depending on the nature of the shares and the regulations set forth by the Ministry of Corporate Affairs (MCA). Typically, it ranges from seven to ten years of continuous non-payment or non-communication from the shareholder.
Custody and Management: Once transferred to the IEPF, the shares are held and managed by the IEPF Authority. The authority ensures the protection and preservation of the transferred shares until they are claimed by the rightful owner.
Shareholder's Rights: When shares are transferred to the IEPF, the shareholder loses certain rights associated with the shares. This includes the right to receive dividends, attend shareholders' meetings, exercise voting rights, and transfer the shares.
Claiming Transferred Shares: Shareholders who wish to reclaim their shares from the IEPF can follow the prescribed procedure outlined by the Ministry of Corporate Affairs. This typically involves submitting a claim form, providing supporting documents, and meeting the eligibility criteria set by the IEPF.
Claim Period: The IEPF provides a specific timeframe within which shareholders can claim their transferred shares. It's crucial to adhere to this timeframe and initiate the claim process promptly to ensure a successful recovery of the shares.
India for NRI helps clients in the recovery of unclaimed shares or shares of their relatives from the IEPF Authority by professionally filing the forms and arranging for all the documents required to file the form.
Unclaimed asset recovery services help investors recover unclaimed dividends, shares, or other unclaimed assets such as unclaimed inheritance or unclaimed property. We also assist with unclaimed inheritance search for those seeking to trace lost or forgotten inheritance and unclaimed inheritance money.
Also Read: What are various unclaimed investments that NRIs' are generally unaware of?