Question: I opened a demat and a checking account with ICICI after I began my profession. I had bought a few shares additionally in that demat account, however attributable to a number of relocations and job adjustments I couldn’t maintain observe of my demat account and I additionally closed my checking account because it was an previous wage account. Recently, after I checked my demat account assertion, I discovered that shares have been transferred to IEPF. I’m not certain how shares mendacity in my demat account could be transferred to IEPF. Further, how these shares could be claimed again?
Answer: Since you had opened the demat and checking account way back, you wouldn’t have up to date the KYC (Know Your Customer) paperwork in these accounts. Further, because you had closed your checking account which was linked to your demat account, therefore no dividend payout from the corporate might get credited to your checking account as you had already closed the linked checking account.
As per the IEPF (Investor Education and Protection Fund) laws, if the dividend stays unclaimed for 7 years or extra, the shares pertaining to that dividend can be transferred to IEPF. Hence your shares would have been transferred to IEPF.
Now to say these shares again into your demat account, you’ll have to write to these corporations along with your KYC paperwork, Signature verification from financial institution and your Demat Transaction Statement reflecting the switch of shares to IEPF. Then, after due verification, corporations would challenge you an Entitlement Letter after which you may file an IEPF declare on-line and submit the paperwork to respective corporations. IEPF declare is being dealt with by the federal government solely.
After corporations confirm your declare, the method will transfer to IEPF authority and as soon as they approve your declare, shares can be credited again to your demat account by IEPF authority.
Vikash Jain is co-founder at Share Samadhan Limited. Queries and views at [email protected]
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