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Recovery of Shares In India From IEPF

Share investments used to be made using actual paper share certificates in the past. The investors received tangible grants of the investments they made in a corporation in the form of debentures or shares. These shares or debentures were in paper form, which made them difficult to keep and readily loseable and destroyable. Such iepf unclaimed shares in physical form might exist for a number of reasons, including ripped shares, lost shares, iepf unclaimed shares, forgotten shares, the passing of a genuine shareholder, and deconstructed shares. In India, many people put their money in shares but either forget to claim them or let them expire before they can be claimed. In order to ensure that the iepf unclaimed shares may be transferred to and received by the correct individual, the Ministry of Corporate Affairs established the IEPF, or Investor Education & Protection Fund, in order to address these issues.

MUDS is your one-stop shop for claiming such iepf unclaimed shares and handles it for you in a special & distinctive way. If you have any questions or concerns about recovering shares, issuing duplicate shares, deleting names, transferring shares, transporting shares, etc., you may receive full support at MUDS. You can recover your iepf unclaimed shares with the aid of MUDS.

Complete Procedure for Recovery of Shares from IEPF

What is IEPF?

To protect investors' interests and increase public knowledge, the Central Government of India (GoI) established the Investor Education and Protection Fund, or IEPF. The IEPF was established in accordance with Section 125 of the 2013 Companies Act. Unclaimed or underpaid payments from investors in a corporation are collected and added to the IEPF.

The IEPF is managed by the IEPF Authority, which is made up of a chairperson or CEO and up to seven additional members who are all chosen by the Indian central government. After consulting with the Comptroller & Auditor-General of India, the IEPF Authority handles the IEPF funds and keeps separate accounts & other pertinent documents pertaining to the funds as mandated. The sum accumulated or credited to the IEPF in compliance with the Act's provisions constitutes the IEPF's funds. Only those uses and expenditures of IEPF funds as are permitted under the Act will be made by the IEPF Authority. The Comptroller and Auditor-General of India will conduct an audit of the IEPF's financial records. The Authority will annually deliver the audit report and the accounts to the Central Government of India.

Who May Request for Share Recoveries from the IEPF Authority?

By submitting a straightforward application to the IEPF Authority, any shareholder whose iepf unclaimed shares have been forwarded to the IEPF may request a return of shares. However, a claimant is only permitted to submit one combined claim in relation to a firm every Financial Year. The data from several Folios from the same company should be included in the aggregated claim.

When the claimant is the registered Shareholder's nominee, legal heir, or successor, he or she must make sure that the Company has finished the share transmission process and has issued an entitlement letter before submitting the IEPF Claim to the appropriate authorities.

What are the Services Offered by MUDS Management?

The following are some significant services that MUDS Management provides:


Recovery of Shares

Recovery of Shares is the process of claiming the unclaimed amount of Shares, which is transferred to IEPF and can only be claimed after adhering to the correct method outlined by IEPF & MCA. From submitting the application to receiving a return from the IEPF, MUDS Management will offer end-to-end help.

The following documents are necessary for recovering shares from the IEPF:

1. The claimant must submit the following paperwork when requesting the recovery of shares:

  • Details about the Claimant
  • Information about the company from whom the claim is made
  • Recovery of shared information details
  • Specifics of the dividend amount that must be claimed
  • Aadhar Card, citizenship, passport, OCI, PIO card number, and other personal information about the applicant.
  • Aadhar card DEMAT Account number-related bank account information.

2. Documents that the claimant must submit to get a refund include:

  • Printout of the fully completed form with the claimant's signature and a copy of the acknowledgment with the SRN number. An indemnity bond with the claimant's signature on non-judicial stamp paper for the amount specified in the Stamp Act.
  • With the claimant's and the witness's signatures, the original advanced stamp receipt
  • Original share certificate and claimant's Aadhar card information
  • entitlement evidence
  • For NRIs and foreigners: Passports and other information
  • Returned check
  • Copy of a DEMAT account list

How to Recover Shares from the IEPF?

The Recovery of Shares from IEPF step-by-step approach is as follows:

  • Step 1: Document Filing on the Portal: Team MUDS Management must receive the relevant form and documentation from the claimant or client who want to apply for the recovery of shares.
  • Step 2: Submission of the Refund Claim: After completing the relevant forms and supporting documentation, the claimant must deliver a copy of the form in an envelope marked "Refund Claim from IEPF Authority" to the company's registrar or the IEPF Nodal Officer.
  • Step 3: Claim Submission to IEPF Authority: Following the submission of the supporting evidence to the Company's IEPF Nodal officer, the Company is required to construct a verification report within 15 days of completing the form. The IEPF authorities must then be given the verification report and the documents needed to proceed with the recovery of shares.
  • Step 4: Refunding: Within sixty days after the report's submission, the IEPF authority will determine whether to pay the claimant.

When the claimant is entitled to the shares after requesting approval from the competent Authority, the IEPF authority gives a reimbursement for the recovered shares. The claimant receives a bill for payment from the IEPF officer, and the funds are credited to their DEMAT account.

Transfer of Shares

The ToS or the Transfer of company Shares is the marketing phrase for the process of transferring ownership of the Share Certificate from the Transferor to the Transferee. If you have shares that are physically in your possession and you are the legal heir to those shares and you want to transfer those shares into your name, you may get in touch with MUDS Management for any such transfer-related solutions. When attempting to transfer of company shares from various firms to your name, though, you can run into some issues. Don't worry; MUDS Management can assist you in resolving any of the following issues:

  • Mismatched Initials: It is common for your signatures to alter over time, particularly if you are signing documents for the first time after a significant gap. If this occurs, it means that your current signatures do not match those on the record from earlier in time. Our professionals at MUDS Management can assist you with amending your signatures to reflect the Company's record.
  • A buyer who has fairly paid the consideration amount but was unable to submit the transfer deed for any reason is said to have engaged in non-submission of transfer deed. The shares are still undoubtedly in the sellers' names. We at MUDS Management can assist you in transferring those shares, which are still in the seller's name, to the purchasers.
  • Recover Lost Shares: There is a good chance that you won't be able to get your share value back if your paper share certificates are lost for any reason and you wish to get your shares back. However, there is no need to worry at all since our professionals can assist you in recovering those duplicate certificates in your/your company's name and can make all of your attempts to obtain your property back simple & uncomplicated.
  • Paper Share certificates that have been torn or disassembled due to improper maintenance might cause significant issues during the transfer of shares. Therefore, our specialists can look for a viable strategy to retrieve those shares if your share paper share certificates are damaged or destroyed.

How to claim dividend?

Unclaimed Dividend

Companies annually declare dividends on shares, and if the shareholder fails to collect them after seven years, the dividends are transferred to the IEPF account. Even after the shares have been properly transferred to IEPF's account, investors retain the right to collect any unclaimed dividends. Even with the Government of India's ongoing attempts to guarantee the integrity of unclaimed dividends, split shares, debentures, etc., there are still a number of investors who have been negatively impacted by unclaimed dividends in India. You need not fret if you are another person who has issues with unclaimed dividends or shares. MUDS Management is always here to help you in any manner. The following are typical issues you can run into while attempting to retrieve unclaimed dividends:

  • No execution or faulty execution of the transmission of the transfer might occasionally result in the buyer's shares remaining in the seller's name. Physical shares are often where it occurs. Similar situations arise when a legal heir or successor neglects to properly and correctly transfer of company shares in the investor's name after his or her passing. It may occur for any reason, including a lack of effort, the successor's carelessness for whatever reason, incorrect legal advice, or deception on the part of the concerned Company.
  • Expiring Records: Inaccurate or outdated shareholder information is the leading cause of unclaimed dividends. Any person's shares may become unclaimed dividends if their name, age, husband or father's name, date of birth, and residence are incorrect.

Transfer of Company Shares

It refers to the transfer of company shares through the operation of law, or ToS, in the legal successor following the death of the real Shareholder. When shares are transferred for reasons other than a natural transfer—such as death, insolvency, bankruptcy, and insanity—the Legal Heir encounters several difficulties. You are not simply a shareholder after you have registered with a company for the Transmission of Shares; you also have all the rights.

When Transmission of Shares is conducted improperly, it might have a negative impact on you, especially if you don't have the right expert counsel. We at MUDS Management are helping our esteemed clients with a variety of Share Transmission-related issues. The following are some potential difficulties you can run across during the transmission of shares:

  1. Several Holdings in Different Businesses: If you have multiple holdings in different companies and wish to successfully transfer shares, you must provide the necessary documentation to each company and follow up regularly in accordance with each one's unique regulations.
  2. One of the most frequent issues experienced by shareholders is the confusion between the terms "transmission of shares" and "transfer of shares." The Companies Act emphasizes the distinction between a share's transmission and transfer. While the Transmission of Shares is entirely influenced by the application of legislation, the Transfer of Shares entirely rests on the Act and choice of the Shareholder. While shares are sometimes transferred without exact consideration, the transmission of shares only occurs in cases of inheritance or will.
  3. Jointly Held Securities: If you are one of the joint holders, you may experience several issues with the transmission of shares. When it comes to jointly held shares, our specialists may assist you in having the name of the other Shareholder removed either by operation of law (in the event that the other joint holder dies) or when you actively request it.

Succession Certificate 

A Succession Certificate is a document that a Competent Court (civil) issues to certify that a certain individual is the rightful heir to a decedent. This certificate gives the successor the right to sell the dead person's debts and assets. At MUDS Management, we have a group of skilled attorneys and advocates that can assist with the petition's formulation and submission as well as representation before the appropriate court.

Demat of Shares

Shares are dematerialized, or changed from their physical form to their demat form. An investor must have an account with a DP if they plan to dematerialize their securities. The Certificates registered in the Client's name must be defaced and given to the DP. You may create a Demat account and convert shares with the assistance of our professionals at MUDS Management.

Recovery of Provident Fund

A provident fund is a voluntarily established investment fund that helps people reach their financial objectives. Employees can pay a percentage of their monthly salary to this pension through the Government-managed retirement savings programme. To assist our clients in reclaiming Provident Funds, we have a team of professionals at our disposal.

Insurance Claims

Such claims are official requests for loss coverage from the policyholder to the insurance provider. According to the data, insurance firms in India are home to almost 12,000 crores in unclaimed funds. You may easily collect all of your insurance claims with the aid of MUDS Management.

The delayed insurance claim has the following causes:

  1. Death of Policy Holder: If the nominee's name is not provided while purchasing the insurance coverage, the policy is useless. The nominee receives the money, known as a Death Claim, in the event that the insurance policy's holder passes away before the policy's maturity period. Assume, however, that you chose the nominee when the policy was first established, and that person passed away without having the candidate's name updated in the policy.If the policyholder in this situation passes away, the settlement of the claim will become problematic, necessitating court action to get the Succession Certificate, which will establish your lawful heirship. This entire procedure takes time and additional money. Therefore, there is no need for concern because a skilled attorney is available to assist you in this matter quickly.
  2. Loss of Insurance Policy Paper: Insurance policyholders frequently experience this issue when they purchase a policy but are unable to properly handle their paperwork. Imagine that you purchased an insurance coverage from a company. However, you need not worry about it. You may receive your duplicate paper from the insurance companies with the aid of MUDS Management. a Listed Company then produces a Duplicate Share Certificate based on the Original Share Certificate. Your duplicate share certificates will be issued with the aid of our professionals at MUDS Management.

Name Change or Removal in Shares

In the event that one of the joint shareholders leaves the company or passes away, the name may be updated or deleted. In such circumstances, the surviving Shareholder must only request with the Company or RTA for the updating or deletion of the name. When updating or deleting names from shares, our professionals will assist you.

Getting Mutual Funds Back

Many people put money into mutual funds and then completely ignore them. The problem with this is that the Mutual Funds themselves, not the MCA or IEPF, may be used to track these assets. The approach or process for recovering Mutual Funds is the same as that for recovering Shares.

Transfer of Controversial Shares through NCLT

The prospective Shareholder may approach NCLT to request an order for the Transfer of Shares (ToS) by the Company if the Company rejects the Shareholder's application for the Transfer of Shares. Our services will offer a complete resolution to any ongoing dispute before the NCLT, including filing any litigation and advocating for the Shareholder before the tribunal.

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