What Happens to Unclaimed Shares After 7 Years? - 0 views

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  #1 mohit876 on 11 Aug 25

   

  What Happens to Unclaimed Shares After 7 Years?
  If you or your family members hold shares in a company and have not claimed dividends for a long time, you might be wondering what happens next. Many investors are unaware that unclaimed shares after 7 years are no longer held by the company but are transferred to a government-controlled account. This process is managed by the Investor Education and Protection Fund (IEPF) under the Ministry of Corporate Affairs (MCA), India.
  
  Understanding the Rule
  As per Section 124(6) of the Companies Act, 2013, if any dividend on shares has not been claimed or encashed for seven consecutive years, both the unclaimed dividend amount and the corresponding shares must be transferred to the IEPF. This is done to protect investor wealth and ensure that unclaimed funds are safeguarded until the rightful owner or their legal heir claims them.
  
  The Transfer Process
  Here's how the process works:
  
  Tracking Unclaimed Dividends - Companies maintain records of investors who have not claimed dividends for each year.
  
  Seven-Year Countdown - If dividends remain unclaimed for seven consecutive years, the related shares are marked for transfer.
  
  Notice to Shareholders - The company issues a notice to the shareholder's last registered address and publishes details on its website and in newspapers.
  
  Transfer to IEPF - After the notice period, the shares are transferred to the IEPF's Demat account along with any unclaimed dividend amount.
  
  Can You Recover Unclaimed Shares After 7 Years?
  Yes, the good news is that unclaimed shares after 7 years are not lost forever. The rightful shareholder or their legal heir can claim them back from the IEPF by following the prescribed process:
  
  Filing IEPF Form-5 on the MCA portal.
  
  providing real documentation, such as verification, address, and ownership proof, to the company's nodal officer.
  
  After confirming the claim, the business sends it to the IEPF Authority for approval.
  
  Once approved, the shares and any due dividends are transferred back to your Demat account.
  
  Why Shares Become Unclaimed
  Shares go unclaimed for years for a number of reasons:
  
  change of address without inform the registrar or the company.
  
  death of the shareholder without giving their heirs part of the investment.
  
  Lost physical share certificates.
  
  Inactive or forgotten investments.
  
  Avoiding This Situation
  To prevent your shares from becoming "unclaimed shares after 7 years," you can:
  
  Regularly check dividend credits in your bank account.
  
  Keep your contact details updated with the company/registrar.
  
  Convert physical shares to Demat form for easy tracking.
  
  Inform your family members about your investments.
  
  Final Thoughts
  While unclaimed shares after 7 years are transferred to the IEPF for safekeeping, the retrieval process can be time-consuming and document-heavy. Therefore, it is best to keep your investment records updated and claim dividends promptly. However, if your shares have already moved to IEPF, timely action and proper documentation can help you recover them successfully.
  
  Visit us: https://care4share.in/unclaimed-shares-after-7-years/

   

  <div class="cArrow"> </div><div class="cContentInner">What Happens to Unclaimed Shares After 7 Years? <br /> If you or your family members hold shares in a company and have not claimed dividends for a long time, you might be wondering what happens next. Many investors are unaware that unclaimed shares after 7 years are no longer held by the company but are transferred to a government-controlled account. This process is managed by the Investor Education and Protection Fund (IEPF) under the Ministry of Corporate Affairs (MCA), India. <br /> <br /> Understanding the Rule <br /> As per Section 124(6) of the Companies Act, 2013, if any dividend on shares has not been claimed or encashed for seven consecutive years, both the unclaimed dividend amount and the corresponding shares must be transferred to the IEPF. This is done to protect investor wealth and ensure that unclaimed funds are safeguarded until the rightful owner or their legal heir claims them. <br /> <br /> The Transfer Process <br /> Here's how the process works: <br /> <br /> Tracking Unclaimed Dividends - Companies maintain records of investors who have not claimed dividends for each year. <br /> <br /> Seven-Year Countdown - If dividends remain unclaimed for seven consecutive years, the related shares are marked for transfer. <br /> <br /> Notice to Shareholders - The company issues a notice to the shareholder's last registered address and publishes details on its website and in newspapers. <br /> <br /> Transfer to IEPF - After the notice period, the shares are transferred to the IEPF's Demat account along with any unclaimed dividend amount. <br /> <br /> Can You Recover Unclaimed Shares After 7 Years? <br /> Yes, the good news is that unclaimed shares after 7 years are not lost forever. The rightful shareholder or their legal heir can claim them back from the IEPF by following the prescribed process: <br /> <br /> Filing IEPF Form-5 on the MCA portal. <br /> <br /> providing real documentation, such as verification, address, and ownership proof, to the company's nodal officer. <br /> <br /> After confirming the claim, the business sends it to the IEPF Authority for approval. <br /> <br /> Once approved, the shares and any due dividends are transferred back to your Demat account. <br /> <br /> Why Shares Become Unclaimed <br /> Shares go unclaimed for years for a number of reasons: <br /> <br /> change of address without inform the registrar or the company. <br /> <br /> death of the shareholder without giving their heirs part of the investment. <br /> <br /> Lost physical share certificates. <br /> <br /> Inactive or forgotten investments. <br /> <br /> Avoiding This Situation <br /> To prevent your shares from becoming "unclaimed shares after 7 years," you can: <br /> <br /> Regularly check dividend credits in your bank account. <br /> <br /> Keep your contact details updated with the company/registrar. <br /> <br /> Convert physical shares to Demat form for easy tracking. <br /> <br /> Inform your family members about your investments. <br /> <br /> Final Thoughts <br /> While unclaimed shares after 7 years are transferred to the IEPF for safekeeping, the retrieval process can be time-consuming and document-heavy. Therefore, it is best to keep your investment records updated and claim dividends promptly. However, if your shares have already moved to IEPF, timely action and proper documentation can help you recover them successfully. <br /> <br /> Visit us: <a href="https://care4share.in/unclaimed-shares-after-7-years/" rel="nofollow" target="_blank">https://care4share.in/unclaimed-shares-after-7-years/</a></div>

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