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Understanding IEPF and the Nuances of Lost Shares Recovery

  The IEPF stands for Investor Education and Protection Fund for addressing the steadily expanding issue of individuals failing to remember their shareholdings in an organization. The IEPF recovery system was introduced by the government to educate investors and to safeguard their interests. The Government deals with any lost share moved to this account until the legitimate investors apply to get them transferred to their account. The profits on the shares stay unclaimed for quite a long time since individuals will more often than not fail to remember that they own the shares in any case. Regulatory Laws That Govern IEPF The Companies Act, 2013, and Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules established in 2016 are relevant to the IEPF. These regulations express that the financial backers get a limit of 30 days to guarantee the profit after its announcement by the government. If the profits and share dividends stay unclaimed eve...

Know about the amounts transferred to IEPF

  The IEPF or the Investor Education and Protection Fund are used for promoting awareness and protecting the interests of the investors. So, let’s talk about what are IEPF and IEPF recovery and the amounts that are transferred to IEPF. What is IEPF? Before knowing about IEPF recovery , you should know about what a company is. To explain legally, a company is a legal body that is able to own a particular amount of property and hence can sue or be sued under its own name. Though it has no specific meaning legally, to say generally, it is a group of people who work professionally and try to achieve a particular result. The IEPF or Investor Education and Protection Fund was a fund that was set up initially to pool in all the dividends, shared application money or interests, matured deposits debentures, etc., that have remained unclaimed for seven years.  All the money that is collected from those sources needs to be transferred to the fund known as IEPF.  The investors, who ...

The Nutshell that Breaks 5 Easy Rules for IEPF Recovery

 As investors, there are times when your investments become unreachable, especially when you did it years ago. Thinking it to be buried in some loophole, you lose hope on recovering them. However, It is certainly possible to get back your money or investment.  Recently, the guidelines announced by the government in 2017 has made it pretty easier for the investors to get not just dividends but shares regularized too.  But what will you have to do for it? The only solution at hand is IEPF for which it’s important to have a great authority with utmost deep experience in this field of retrieving blocked investments known as IEPF is at its peak. Investor Education and Protection Fund (IEPF), set up by the Ministry of Corporate Affairs (CMA), and established by the Government of India in 2016 is the fund that provides protection to investors against unscrupulous activities of certain market players.  In simple words, IEPF is a trust fund of SEBI, under th...

How to make a IEPF recovery

  IEPF stands for Investor Education and Protection Fund is incorporated under Section 125 of Companies Act 2013. IEPF is a government authority that is entrusted to check all unclaimed dividends, deposits, shares, etc., of a company. It looks over refunds of shares, matured deposits/debentures, unclaimed dividends, etc., to investors. What is transferred to IEPF? There is a vast amount of unclaimed money piling up with the IEPF in the form of old equity shares, dividends, debentures, etc. The remaining unclaimed investments for seven years or more are generally transferred to the IEPF. The following are the heads they fall under: The investor does not yet claim dividends issued by the company. Shares as per the folio under which the dividends have remained unclaimed for a consecutive period of 7 years. Matured debentures that are unclaimed with the company. Matured deposits with a company except banking companies. Sale proceeds of fraction shares that arises due to amalgamation is...

Duplicate Share Certificate: What They Are, How To Deal With Them, and Why It's Important!

  It's a common practice at many companies to create duplicate share certificates . This practice can be very helpful in case there is a need to sell shares. This blog will outline what a duplicate share certificate is and why these should be issued. It will also outline how these certificates should be issued and issued correctly. What they are: As an entrepreneur, you'll eventually need to work with investors at some point in your business's lifespan.  When it comes time to do so, make sure their interests are protected by issuing them with the appropriate legal documentation, like share certificates (also known as stock certificates or shareholdings). This document has historical value and serves as proof of ownership for your company's shares. A shareholder can demonstrate financial responsibility to lenders, investors, and potential partners by providing legally sanctioned documentation of their stake in the business. Shareholders who themselves or whose certifica...

Benefits of having an IEPF account

  Everybody knows that if he/she has any investment in the company, he/she will get dividends on the shares. We all know dividend is not constant or even interest. Sometimes, it can be very less than expected, but some company's dividend may be huge than expected. It depends on the company's performance. But, what happens if you have invested in a company and some company has gone to IEPF authority (due to insolvency & Bankruptcy), then how to claim that dividend? Let's dive in! The Investor Education and Protection Fund Authority, a branch of India's Ministry of Corporate Affairs, announced an update to the framework related to the due dividends of investors and depositors which were carried over and transferred. Investors who are now able to reclaim their due payment will most likely benefit from having financial security in place related to any unpaid declared profits through no fault of their own. In the event you are an investor or depositor, you might have is...

How to recover IEPF shares?

  IEPF is the Investor Education and Protection Fund that has been set up to protect the interest of the investor. IEPF shares recovery provides all information and thereby promotes awareness among the investor.  But this website does not provide any advice related to investment. Many times people fail to claim their shares. You need to quickly calm and track all your dues if the fund has been with the IEPF. Crores of unclaimed shares and dividends have been lying with the IEPF.  Reason behind the arise of unclaimed dividend and shares The government has been making plans to take over the shares of IEPF. There are several reasons for the arise of unclaimed dividend and shares are as follows: When you lose track of the amount invested in a certain company. When a company was not able to reach out to you through your address or contact number.  When the legal heir and nominees fail to claim the recovery of shares and dividend. When the shares are torn, lost, or diama...