Role of Demat accounts in recovering shares from IEPF: important information for claimants

In the complex world of finance and investment, understanding the role of Demat accounts in recovering shares from the Investor Education and Protection Fund (IEPF) is crucial. As a recovery expert in IEPF claim and shares, Clearclaim guides you through this complex process and helps you reclaim your rightful assets.

Current State of Unclaimed Shares in India

Before discussing the recovery procedure, let’s take an overview of the current unclaimed shares scenario in India.

• IEPF Holdings: As of August 2024, the IEPF kept unclaimed shares worth a total amount of Rs 82,199 crore from around 1,561 listed companies.
• Annual Growth Rate: The value of unclaimed shares is increasing at the significant rate of 15-20% per annum.
• Totals Unclaimed Assets:If we add up sources such as shares, dividends, and bank deposits, exceeds to more than Rs 2 lakh crores.
• Number of Affected Companies:More than 3,000 listed companies transferred their unclaimed shares into the IEPF account. These statistics show the current need to address unclaimed shares and how understanding this recovery process is crucial in it.

Understanding Demat Accounts and Their Role in IEPF Recovery:

What is a Demat Account?

• A Demat (Dematerialized) account is an electronic account that houses your shares and securities. It plays a very important role in the recovery process of IEPF shares.
• Compulsory Requirement: Shares recovered from IEPF are credited into a Demat account only.
• Electronic Transfer: Recovered shares are electronically credited to a claimant’s Demat account, ensuring safety and smooth transfer.
• Verification Process: It helps in verifying the claimant’s identity and ownership in shares.
• Ease of Management: Once recovered, the shares kept in the Demat account can easily be managed and sold, or transferred.
• The IEPF Shares Recovery Process: A Step-by-Step Guide Verification Check through the IEPF website whether your shares have been transferred to the IEPF/Note.
• Documentation: You must collect the required documents such as: Original Share certificates, if any Available ID Proof and Address ID and address proof as mandated in the Claim Form, Demat Account Details, Indemnity bond.
• Submission of Form: Submit an online form IEPF-5 by visiting MCA portal.
• Submission of Printed Form: Duly printed form with required annexation documents must be presented along with it to be submitted with the IEPF authority. The concerned company authenticates.
• Company Verification: Your company confirms and verify the claim before processing.
• IEPF Approval: After verification process is complete, that is approved by IEPF authority and thereafter Share Transfer: Approved shares will be directly credited to the claimant’s Demat account.

Why a Demat account is required while recovery of IEPF Shares? Regulatory

• compliance:It has been explicitly mentioned that after recovery, a demat account is mandatorily required by SEBI for transferring recovered shares.
• Security:Unlike physical shares, demat account facilitates enhanced security.
• Traceability: Electronic record can easily provide with a clear trail for the audit and the trail in the demat account.
• Comfort: Administration of recovered shares will always be comfortable in digital format.
• Future Transfer:In case shares need to be sold or transferred from that claimant’s Demat Account, it shall not require long procedures. All can easily be done under that Digital format.

Practical Tips on Recovery of Shares of ClaimsOpening of a Demat Account

• A person must open a Demat Account before initiating his/ her IEPF claims. If someone has got a Demat account he/ she will also know the procedure.

Selection of Depository Participant (DP)

• Choose right kind of DP who must be experiencing in handling all kind of claims of IEPF as. We are equipped with the most current knowledge and tools with the best experts to support you in the claims process.

We offer: Comprehensive Search of Assets

• We help you locate all the possible unclaimed shares.

Documentation Assistance

• We will assist you in preparing all the detailed documentation that is required, including setting up a Demat account. We handle the complete claim process from submitting forms to final recovery in your Demat account. We keep you updated on the status of the claim through our transparent communication process. We offer you post-recovery support to handle the shares recovered in your Demat account. Do not let your valuable shares go unclaimed in the IEPF. In light of the increased volume of assets and the complexities involved in recovery, it is imperative to take action quickly. Clearclaim will ensure that your shares are returned appropriately to your Demat account, navigating the intricate IEPF claim process with both expertise and efficiency. I urge you to contact Clearclaim today to start your journey toward reclaiming your shares. Consult at us absolutely free of cost with a call at the given above or visiting www.Clearclaim.in/ your financial assets wait to be recovered. Clearclaim will help you along on this road of retrieval now.