In earlier periods, Companies that are invested by the investors are given the shares certificates in the physical form for their worth of investment. Those certificates are called as physical shares certificates. The companies will give the dividend to the shareholders namely- quarterly dividends, half yearly dividends, interim dividends and final dividends.
The dividends are given according to the percentage in figures 100% or 200% etc., on face value and are sent to the shareholders through cheques to their addresses registered with the company. The shareholder can deposit the cheques in the respective banks and claim the dividend.
Generally shareholders might be transferred or reallocated to different locations according to their profession and their addresses might differ from the address registered while buying the shares. In such cases, the share holders might not be aware or cannot keep track of the dividend cheques that are posted to the previous address.
If that is continued for the period of 7 years or more, those shares are transferred to IEPF. Investors Education and Protection Fund is an authority formed by the government in the year of 2013, to keep record of the unclaimed shares and unclaimed dividends of the shareholders.
In case of Demat Shares, there are possibilities where the dividend from the companies is either directly credited to the bank or given in the form of cheques. If the cheques for the dividends of the shares in Demat Accounts are unclaimed for the period of 7 years or more those shares are also transferred to IEPF and recorder under unclaimed share or unclaimed dividends.
At Shares Recovery India we were glad that we helped and made our customers happy in claiming the unclaimed dividends and unclaimed shares from IEPF. One of our customers has invested about 24000/- INR in the company called BALAJI AMINES LTD. and bought 600 shares. After that he lost his shares certificate and was not able to claim the dividend from the company for 7 years. Those shares were transferred to IEPF and are registered under unclaimed shares and unclaimed dividends.
He knows that he had only 600 shares in the form of physical shares certificate with the company, but he is not aware of the actual worth and number of shares he owns currently. BALAJI AMINES LTD. has announced bonus on the shares in the ratio of 1:1. Then the shares summed up to 1200 shares. After that company has split the face value of the share form 10/- INR to 2/- INR. Then total shares added up to 1200*5=6000 shares.
He approached Shares Recovery India, then we took him through all the processes starting from getting a duplicate shares certificate till the end of claiming the unclaimed dividends and unclaimed shares.
During the process of claiming the unclaimed shares and unclaimed dividends the share value was 4,600/- INR. And the net worth of the shares became 2,76,00,000/- INR. Additionally the company gave the dividend for many times which are unclaimed by him and such unclaimed dividend of worth approx. 1.5 lakhs are transferred to IEPF. We are very glad that we were able to help him to claim the unclaimed dividends from IEPF.
Another customer who approached Shares Recovery India was a shareholder in the company called Tata Consultancy Services Ltd. This company’s head office is located in Mumbai. This company is listed as second largest in terms of capital. Tata Consultancy Services Ltd. which belongs to TATA Groups is a leading IT sector service provider.
One of our customers’ brother has owned 100 shares in TCS Ltd. The shareholder has died and his brother who was our customer has approached us to claim the unclaimed dividends and unclaimed shares. Those shares in the physical share certificate, and they were unclaimed for more than 7 years because the shareholder has died, so those unclaimed shares are transferred to IEPF.
Another reason for the shares being transferred IEPF is that his address at the time of buying the shares is different from the recent address and so he was not able to receive the dividend cheques sent by the company. Then a question arouse in the mind of the dead shareholder’s brother “what happened to the shares of the dead person?”.
He did not know how the shares are worthy and how to claim dividend and physical shares that are transferred to IEPF. He approached Shares Recovery India and wanted to know the details on “are the physical shares still valid”, “can I transfer shares to family members”, “how to claim unclaimed dividend”. We were happy that our customer found the answers to his questions at Shares Recovery India. We took him through few process where he got to know the worth of physical shares certificate and claim the unclaimed dividends.
TCS Ltd. company has announced bonus for the shares for three times in the ratio of 1:1 and that shares totally summed up to 800 shares. TCS Ltd. has also gave dividend to it’s shareholders for many number of times. At the time of claiming, the market value of the share was 2800/- INR. The value of the 800 shares added up to 22,40,000 /- INR. And the unclaimed dividend value is worth of about 5,00,000/- INR.
This case at Shares Recovery India helped us to reach milestones and help the customer to solve the issue with the worth of the shares. We underwent the process of transmission of shares as the customer provided us with the required documents and information.
This process has various steps of proceedings like filing an FIR in the nearest police station, gave paper notification, applied for a duplicate shares certificate, transmitted to his brother’s name, opened a Demat account in one day.
For the transmission of shares to the family member there is long and time taking procedure has to be followed with the required documents handy. Lack of any required documents, it will take even more time to transmission of the shares to happen.
To claim the unclaimed shares and unclaimed dividends from IEPF there are some procedures to be followed.