we have a couple of queries about claiming shares from IEPF account but wanted to first understand a bit about IEPF process too. Thank you in advance.
My queries are as follows :
- We became legal heirs for getting shares. So we approached this company with the Original Share certificate stating that we are legal heirs and wish to get the shares transmitted in legal heir names. So this company said as the value of shares was over 2 lakh a Succession Certificate was required. That entire process took a couple of years. Then we sent all documents again with the transmission forms and all details as required. Then they said some additional document was missing and sent another letter which we replied again. Now they tell us that last month the share were transmitted to IEPF account as the dividend was not claimed by us for 7 years!!!. We are also getting a feeling the company registrar deliberately delayed in replying so that they could transfer shares to IEPF and not to us. So my question is this -
- if a transmission is under process and if we have requested transmission and company asks documents can it still transmit the shares to IEPF? Was it not required by the company that post our initial letter that as the successors / legal heirs have started correspondence to hold the shares and not transmit/transfer it to IEPF as we have already claimed the shares from the company?
- Also we do not understand how IEPF can take shares which we are legally holding - for any reason if we are not able to claim dividend how can it take over our shares? Divided we can understand as that amount is with the company and as not claimed as its with the company - the company has the authority to transfer these - but shares as we are holding it and in our possession how can it be transferred to IEPF? Its a real serious issue because in our case there is no emergency to sell shares and get the money - but say if some investor has some major issue in life and cannot claim the share dividends but one day in emergency tries to sell shares and finds out its no longer in his possession and he has to claim it from IEPF first by producing all documents? Or even if no emergency but if say he has gone abroad or has a transferable job so cannot claim dividend. Now this issue may not occur because as shares are in demat a demat account is linked to your bank account. We think this is legally wrong to transfer shares which are legally in our possession by a third party. Here we are the legal owners and company / registrar is a third party. Without our consent how can it transfer my shares to anyone else?
- Does any one have experience in filling the actual IEPF Form 5 - how it has to be filled for shares + dividend - if any one has a sample document one could share? How much time does it takes once we file the claim because from what we have heard from most people we interacted its a time consuming and lengthy process and can take months or years to get the shares out of IEPF. Or are we wrong?
Thank you for your help.
CAclubindia
