Shares Recovery

Ministry of Corporate Affairs (MCA) came out with Investor Education and Protection Fund Rules, 2017. As per the provisions in these rules, if dividends are unclaimed for continuous 7 years, the dividend as well as Shares (includes Bonus Shares and Split Shares) pertaining to those dividends are transferred by the company to IEPF, an authority under MCA, Govt of India.

The claimant can file only one consolidated claim for a company in one financial year against one Aadhaar Number. Even details of multiple Folios of one company need to be included in the consolidated claim.

In case if the claimant is the legal heir or successor or the nominee of the registered shareholder, then he or she has to ensure that the transmission procedure is completed by the company and an entitlement letter is issued to the legal heirs and then only file the IEPF Claim with the authority.