Many families in India hold physical share certificates purchased decades ago. Over time, these investments are forgotten, dividends go unclaimed, and eventually, the shares are transferred to the Investor Education and Protection Fund (IEPF) by the government.
If you or your family members have discovered old share certificates, you might be sitting on a significant amount of wealth. However, claiming it requires navigating a complex legal and procedural maze.
Why do shares become "unclaimed"?
Shares typically move to the unclaimed category due to:
- Change of address: The company could not deliver dividend warrants to your new address.
- Name mismatch: Differences in spelling between the certificate and PAN card.
- Non-encashment: Forgetting to deposit dividend cheques for 7 consecutive years.
- Death of shareholder: Legal heirs unaware of the holdings.
Step 1: Verification of Records
The first step is to check if your shares are still with the company or have been transferred to the IEPF. You can check this on the IEPF website or the respective Registrar and Transfer Agent (RTA) websites like Link Intime or KFintech.
Step 2: Updating DLC / Signature
If you hold physical shares, your signature on record might be 30 years old and may not match your current signature. You will need to update your signature and KYC details with the RTA.
Step 3: Filing the Claim
Depending on the status of your shares, you will need to file:
- Form IEPF-5: If shares are with the government fund.
- ISR Forms: If shares are still with the company but KYC is outdated.
- Transmission Forms: If the original shareholder is deceased.
Common Challenges
The process often involves sending physical documents to the Nodal Officer of the company in Delhi or Mumbai. Rejections are common due to minor discrepancies in names or signatures. (See our guide on mistakes to avoid).
At Ekvam Associates, we handle this end-to-end, ensuring all documentation is precise to avoid rejection and delays.