Recovery of Shares
Recovery of shares refers to the legal process through which shareholders or their legal heirs claim back shares, dividends, and other corporate benefits that have been transferred to the Investor Education and Protection Fund (IEPF) or remain unclaimed with companies. This usually happens when shares are not operated, dividends are not claimed, or the shareholder has passed away without transmission being completed.
When shares remain unclaimed for seven consecutive years, companies are required to transfer them to IEPF. However, the government does not take ownership of these shares. It only holds them in trust until the rightful owner or legal heir applies for recovery.
To recover shares, the claimant must file an application in Form IEPF-5 along with supporting documents such as identity proof, share certificates, demat statements, legal heir documents, affidavits, indemnity bonds, and company verification reports. The company and its Registrar & Transfer Agent (RTA) verify the claim and forward it to the IEPF Authority. Once verified, the IEPF releases the shares and any unpaid dividends to the claimant’s demat account.
Recovery of shares ensures that investors and their families get back what legally belongs to them. Even if years have passed, unclaimed shares can still be recovered by following the correct legal process. For more information, click the link below:
https://www.compliancecalendar.....in/recovery-of-shar
