The Importance of Recovering Shares from IEPF for an Investor

The Importance of Recovering Shares from IEPF for an Investor

According to reports, around 70% of Demat accounts in India do not have a nominee.

Surprisingly, many shareholders in India have not claimed their dividends from the company they have invested in. If you are one of them and have not collected your share, then chances are your dividends will be moved to the Investment Education and Protection Fund (IEPF). This is standard procedure.

Is it important to claim for your shares? Of course! First thing, the amount you now see transferred in IEPF is legally your asset. It is you who own it. Therefore, it serves as one of the most important financial documents for you.

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    Although your unclaimed shares are protected with the IEPF, it is time you take a step and get back what is yours. We can learn why you need to be focused on this in this post.

    What Are Unclaimed Shares

    You are a shareholder. You have invested in the stock market for a company. If you do not claim your shares, then they may call them your unclaimed shares or dividends.

    The statistics regarding unclaimed shares are huge. Take a look at recent data and you might find crores in the IEPF not yet claimed by the shareholders.

    This is your asset that’s now under the possession of IEPF. After the institution verifies your documentation, it will transfer the money to your account. However, you need to make the first move by applying for IEPF recovery of your shares.

    Why Does Your Unclaimed Shares Get Transferred to IEPF

    If you have not made efforts to claim the shares for a single time within 7 years, standard, legal procedure transfers all your shares to the IEPF.

    In case you have not made your claim for more than 7 years, the money is still going to be transferred to the IEPF because of legal regulations. This rule has been made compulsory by the Companies Act of 2013.

    That said, we now need to know why you should not keep your unclaimed dividends in that condition.

    Why It’s Important Not to Waste Time in Recovering Your Unclaimed Shares?

    Taking a step to make your IEPF claim might take a little time. Yes, you need to sit with paperwork and a lot of cross-checking and application-related formalities are included. It’s not going to be a cakewalk. However, managing your work in an organised manner might give you particular advantages in recovering the asset safely and effectively.

    However, the question is: “Why are you going to take immediate steps to recover the amount?”

    According to professional financial institutions, claiming your shares works as a financial document. It adds more amounts as a backup to your investment goals and can supply vital financial firepower. The shares you are not claiming can be your trump card if you are focused on getting useful financial assistance to further expand your investment possibilities.

    Let’s discuss the need for a  fast recovery of your IEPF shares in the points mentioned below:

    The Obvious Point: You Get Back the Money that Belongs to You 

    Getting unclaimed shares is not winning a lottery.  It’s claiming the money that you have invested in the stocks. In case you are a busy investor, or there might be a few other problems that led to the transfer of your money to the IEPF, then claiming it restores your financial assets, which restores your ownership of the assets and gives you more potential to ensure you have enough financial backup.

    You Get the Privilege of Using Your Money as Potential Backup

    It’s indeed important for an investor or a shareholder to use the money for more advanced reasons. Take this account as a shareholder and a present investor. You might have your stocks live with a company in the stock market. However, at the same time, you may have unclaimed shares with another company.

    What if you get the unclaimed shares by recovering them through IEPF? You can now achieve more flexibility in using your finances. Your shares can become more lucid for present and future investment goals. You can be particular in making your way through investments and can own a wider range of financial assets further enhancing your possibilities in this field.

    Restoring Ownership of Disgorged Amounts

    Many shareholders have unclaimed shares because they might have had their shares transferred to the wrong concern because of mistakes. If the shareholder dies before claiming the dividends, then IEPF will transfer the share to the deceased shareholder’s legal heir.

    The recovery of shares from IEPF helps the shareholders, thus, to get back what is rightfully theirs. However, you need to make the claim first. With this step, you can distribute the amount to the debenture holders.

    Do your research on how to claim IEPF dividends by using the IEPF-5 form.

    Challenges of Transferring Shares

    Previously, tangible assets were offered to the debenture holders. You may already understand that these have been done in paper form, which risked the destruction of the assets.

    With IEPF though, your assets are all transferred to your demat account, which is online. In this way, you can gain better security to recover your unclaimed shares.

    How We May Help You

    We are known as Infiny Solutions. We make the application process for your IEPF claim easier and quicker.

    We provide our services through a completely safe and secure channel so that all your investment documents stay secure from cyber threats or other risks.

    Browse our services to learn how we give you the most effective assistance to recover your unclaimed shares.

    RECOVER YOUR LOST WEALTH

    Helping you liquidate your lost shares, unclaimed investments and dividends

    UNLOCK YOUR WEALTH

    Fill out the form below to contact us






      By submitting this form you agree with our terms & conditions

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