Query about iepf and claiming the same from iepf



we have a couple of queries about claiming shares from IEPF account but wanted to first understand a bit about IEPF process too. Thank you in advance. 

My queries are as follows : 

  1. We became legal heirs for getting shares. So we approached this company with the Original Share certificate stating that we are legal heirs and wish to get the shares transmitted in legal heir names. So this company said as the value of shares was over 2 lakh a Succession Certificate was required. That entire process took a couple of years. Then we sent all documents again with the transmission forms and all details as required. Then they said some additional document was missing and sent another letter which we replied again. Now they tell us that last month the share were transmitted to IEPF account as the dividend was not claimed by us for 7 years!!!. We are also getting a feeling the company registrar deliberately delayed in replying so that they could transfer shares to IEPF and not to us. So my question is this -
    • if a transmission is under process and if we have requested transmission and company asks documents can it still transmit the shares to IEPF? Was it not required by the company that post our initial letter that as the successors / legal heirs have started correspondence to hold the shares and not transmit/transfer it to IEPF as we have already claimed the shares from the company?
    • Also we do not understand how IEPF can take shares which we are legally holding - for any reason if we are not able to claim dividend how can it take over our shares? Divided we can understand as that amount is with the company and as not claimed as its with the company - the company has the authority to transfer these - but shares as we are holding it and in our possession how can it be transferred to IEPF? Its a real serious issue because in our case there is no emergency to sell shares and get the money - but say if some investor has some major issue in life and cannot claim the share dividends but one day in emergency tries to sell shares and finds out its no longer in his possession and he has to claim it from IEPF first by producing all documents? Or even if no emergency but if say he has gone abroad or has a transferable job so cannot claim dividend. Now this issue may not occur because as shares are in demat a demat account is linked to your bank account. We think this is legally wrong to transfer shares which are legally in our possession by a third party. Here we are the legal owners and company / registrar is a third party. Without our consent how can it transfer my shares to anyone else?
  2. Does any one have experience in filling the actual IEPF Form 5 - how it has to be filled for shares + dividend - if any one has a sample document one could share? How much time does it takes once we file the claim because from what we have heard from most people we interacted its a time consuming and lengthy process and can take months or years to get the shares out of IEPF. Or are we wrong? 

Thank you for your help.

 
Reply   
 

For your first query..
Company has to keep the dividend in abeyance till the date tansfer or transmission does not take place.. and it is clearly stated in Companies Act that company have to transfer shares to IEPF... and sufficient 7 years are given..
not claiming dividend is a big sign showing that whoever was holding is not anymore there to participate as owner... so government should take charge of that asset..
and this was made when dividend was distributed using dividend warrants or cheques at the address of shareholders and it came returned when address were found wrong... Shareholders should have applied for change in address, but successive failure for 7 years results in transfer to IEPF... so I personally don't think there is anything wrong....

And I don't think that withdrawal from IEPF would be that much time consuming as everything is online.... but I am not sure about same
 
Reply   
 

Thanks for your answer @ Aashish Bansal. But it does not answer my specific queries with regards transmitting shares to IEPF. What you say is right as per companies act company has to transfer if 7 years dividend is not credited or taken. But how can we deposit the money? Thats why we applied for transmission of shares to legal heir names. And we have corresponding with the company for past 2 years so even they were aware of this rule and could have easily provided speedy response. But they seem to have waited for the 7 years to pass and then said all documents are ok but shares are now with IEPF so claim from them! I cant still understand if we begin transmission process how can a company registrar transfer shares to IEPF when we have already claimed the shares and requested transmission. 

 
Reply   
 

Yeah I totally understand that the company has done wrong... But still can't be done anything unless government changes regulations..
actually I myself had some share in physical form in name of my uncle who leaves in Assam.. there was a name mismatch in share certificate and documents. So affidavit was required but at current a political issue is going in Assam for NIRC.. that's why I can't get affidavit.. hence I have to just throw the shares.....
but still you have to follow the procedure
 
Reply   
 

Originally posted by : Aashish Bansal
Yeah I totally understand that the company has done wrong... But still can't be done anything unless government changes regulations.. actually I myself had some share in physical form in name of my uncle who leaves in Assam.. there was a name mismatch in share certificate and documents. So affidavit was required but at current a political issue is going in Assam for NIRC.. that's why I can't get affidavit.. hence I have to just throw the shares..... but still you have to follow the procedure

Yes I think when such rules are framed stock investors should also be considered as its like someone else transferring your shares without your permission.

 
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