WE have read a lot about unclaimed dividends and Shares being transferred to IEPF account. This means that the Indian Government has taken adequate steps to protect the interest of the investors. Starting from 2013, MHA regulations warrants companies to transfer all the unclaimed dividends and Shares which are more than 7 years to the IEPF account. Since then 65 Crores of Shares have been transferred to the IEPF account valuing approximately 22,000 Crores. However, many companies have not yet transferred or moved the dividends and the shares even after 7 years despite repeated remainders. As per the latest information by MHA as much as 4000 notices have been issued to companies that have reported unclaimed dividends ageing more than 7 years yet have not followed the stipulated directions to move the same to IEPF account.
Having understood the huge size of unclaimed dividends and shares lying with IEPF as Corpus, creates a sense of confidence and safety among the investors mind. It also provides a comfort zone to the shareholders to claim the hard-earned money which is due to them. Now, this leads to many questions with respect to the requirements, procedures and statutory documentations to be adhered to re-claim the Dividends and Shares.
But before dwelling deeper into these, it becomes imperative to try and understand some basic reasons to why such huge amount of wealth must lay under the Companies / Government. What causes such careless acts from the shareholders point such that all these dividends are still unclaimed? Is it due to some reckless attitude towards wealth management? Trust, Family knitting, passion, dream, busy schedule, career, misguidance, mis-interpretation, lack of knowledge, lack of awareness, jealousy, over ambitious, re-location, family dispute, Procrastination, heirship and many more such words could be attributed as the reasons for such accumulation of unclaimed wealth.
Keshavmoorthy’s Lost Wealth – Is it lost forever?
Keshavmoorthy is 30 years old, an Engineer working in Bosch Ltd, living happily with his wife and a Son in a posh apartment in Coimbatore. An intelligent, soft spoken professional had been sitting on a pile of lost wealth due to family dispute lasting over 40 years. Fortunately, being in IT industry he had the freedom of information at his hands and bit of interest and effort helped him realize that part of the huge wealth of his Grand Father Mr.Ramamoorthy lying as Shares and Dividends can be retrieved from the Government kitty “IEPF”. But it would remain as a mammoth task to claim what is due to him through legit legal heirship. But, how it could be possible with the existing family dispute which is already pending court judgement pertaining to immovable properties, among the 4 uncles and 2 aunts who were siblings to his father Late.Mr.Raghavmoorthy.
He had been wondering why his father failed to act to claim what is rightful to him. Now in his absence due to his demise it becomes a challenge get back the rightful wealth while the family dispute lasting over 4 decades.
Mr.Ramamoorthy’s family and assets
Ramamoorthy and his wife Geetha has made wise investments in both movable and immovable properties during late 70’s hoping that it would be of great help to their 6 Children. Over a period of 20 years, the fruits of investments paid off and value appreciation of Shares tripled and in todays value its worth 3 Crores. As per the Hindu culture and practice the 2 Girl Children were married and had been provided with adequate shares of wealth at the time of their respective marriages. All the properties and Share in many companies are left back to be shared among the 4 Sons. Mr.Ramamoorthy and Geetha expired in the years 1990 and 1995 and the years to follow saw major dispute among the 4 brothers while trying to divide the wealth especially in the absence of “Will” from the father.
Without able to arrive at amicable settlement among the brothers the dispute has reached the court the case has been dragging over 30 years without any use to anybody. The quality of the life would have been far better to everyone had the brothers were able to settle and take their respective share on the wealth.
Today, Mr.Raghavamoorthy, one among the 4 brothers have also left this world without enjoying the fruits of his rightful share of the properties and on the contrary left his wife and children to continue to follow the family elders in the run to settlement.
As mentioned earlier Keshav had fall back to Google and internet to find the current status of his Grand Fathers Shares. He realized that all the shares in companies should have gone to IEPF as it had been pretty long time that the families failed to Transfer / Transmission of shares to their respective names and that the dividend issued were also not claimed as all the 4 families have moved out on the respective life without knowledge of such dividends.
For Keshav, the official website of IEPF has clearly provided the requirements, procedures and statutory documentations to be adhered. Unfortunately, he is stuck to move forward as one of the statutory needs of IEPF documents is submission of “Succession Certificate” which would be issued by a Court Order.
Is it going to be that easy to get a Court Oder for “Succession Certificate” especially with the dispute that is going on among the family? How to convince or bring together every legal heir to table so as to apply for the “Succession Certificate”.Now is the time that Keshav realized that with his busy work timings and existing family disputes it would be close to impossible to claim these shares in his pocket.
Thus, Keshav decides to take some professional assistance with a competent agency to help / assist him Claim every rightful penny of his from the company shares.
Keshav approached SMB ENABLERS PVT LTD, Chennai, (www.thegoldenegg.in) a leading organization specializing Transmissions, Duplicate Share Certificates, IEPF Claims and all other Non-transmission activities.
Today, SMB Enablers engaging in service with Mr.Keshav coordinated with all the legal heirs have started process of transmission and IEPF claim for all the 4 brother’s individually by ensuring to bring them all to the table to file for Succession Certificate.
Keshav continue to remain as a happy customer and looking forward to enjoy his rightful Share.