An Overview of Recovery of HUL Steel Shares from IEPF With roots in 1933, Hindustan Unilever Limited (HUL) is one of India's top manufacturers of fast-moving consumer goods. It is a subsidiary of Unilever, one of the biggest FMCG firms in the world, and has its headquarters in Mumbai. Over 35 brands across various categories, including food, beverages, personal care, and home care, are part of HUL's product portfolio. Dove, Surf Excel, Lipton, Lux, Lifebuoy, and Pepsodent are just a few of its well-known brands. In December 2022, HUL's market cap was Rs. 638548.42 crore. Additionally, the business has been aggressively pursuing sustainability and social responsibility goals like water conservation, cleanliness, and sanitation, and it has received numerous honours and commendations for these endeavours. According to its financial year 2021-2022 figures, HUL outperformed the market with turnover growth of 11% and underlying volume growth of 3%. Its year-over-year market share gain was the biggest HUL has experienced in a decade. On January 19, 2023, HUL released its quarterly results (ending December 31, 2022). Turnover increased by 16%. Section 124 of the Companies Act, 2013 In section 124 of the Companies Act of 2013, a company must transfer the whole amount of a dividend declared within 30 days to an account known as the "Unpaid Dividend Account" within seven days. The corporation must then create a statement within 90 days that lists each person's name, last known address, and unpaid dividends before publishing it on its website and any other websites that have been permitted to do so. The company must pay 12% annual interest if the due cash is not transferred within seven days. The money will be transferred, along with any accumulated interest, to the Investor Education Protection Fund (IEP) if it goes unpaid or unclaimed for seven years. Similarly, shares will also be transferred to IEPF within 30 days if dividends go unpaid or unclaimed for seven years or more. IEPF Amendment Rules, 2021 This new provisions, Rule 3(f)(a), Sub-Rule 2, makes it clear that, in addition to the funds already paid to the fund, it will also cover the sum specified in Section 90 (9) of the Companies Act and any benefits accruing as a result of the shares in question. The transfer of shares to the authority is covered in detail in Rule 6A of the IEPF Authority Amendment Rules 2021. First, within 30 days of the shares becoming due for transfer, the shares will be credited to the fund's DEMAT account. Additionally, the transfer will be seen as the transfer of shares. These transactions won't be subject to any restrictions and cannot be reversed. Process of recovering shares from Investor Education and Protection Fund Completion of the Application Form The list of information and Documents which will b required in filing the application form for the recovery of shares: Applicant details as well as the company (only the information which is required and is in relation to the process) Claimed amount information Claimed shares details Information of the Bank account of the applicant Deposits/securities in year-wise format details Passport OCI/PIO Card Number Aadhaar Card Submit the claim. The claimant must submit Form IEPF-5, which must be signed by them, together with identity Documents like their Aadhaar card, SRN number, and acceptance copy, to the company's IEPF Nodal Officer/Registrar in order to request a reimbursement. Genuine stock certificates and an advance stamped receipt with witnesses' signatures should also be provided. If the applicant is an NRI, they must present a passport, OCI or PIO card number as evidence of their Indian citizenship and a cancelled cheque. Copy of the customer master list and the original indemnification bond with the claimant's signature are required for Demat accounts. Claim submission by the company to IEPF authorities For the purpose of claim verification, the claimant must deliver a printout of Form IEPF-5 along with additional supporting records to the company's Nodal Officer at its registered office. Within fifteen days of receiving the claim, the employer must provide the verification report to the IEPF. Refund to claimant by the IEPF Authority Within 60 days of receiving the verification report, the IEPF Authority must make a decision on a refund request. A penalty order will be issued for the amount of the payback after the claimant obtains access to the shares with the relevant authority's approval. The IEPF Authority and the appropriate officer will send a bill to the pay and accounts officer for payment after determining the claimant's eligibility. Either the shares or the total value of the claimant's rights will be credited to their Demat account. Services offered by Enterslice Recovery of Shares from IEPF The Investor Education and Protection Fund (IEPF) Recovery of Shares from IEPF initiative is a plan designed to assist in the recovery of shares that have been transferred to the IEPF but have not yet been claimed by their legitimate owners. Both the Ministry of Corporate Affairs (MCA) and the IEPF must follow the correct procedures in order to reclaim these shares. We provide our customers with thorough assistance since we recognize that navigating the process of recovery can be tricky. From completing application forms and sending required evidence to checking in with the IEPF to see where your application stands, our team of experienced experts is here to help you through the whole process. We are dedicated to giving our clients the support they require in order to recover their shares effectively, and our goal is to streamline the procedure for claiming reimbursement for unclaimed shares. To provide our customers with the best opportunity of reclaiming their shares, we take pleasure in providing individualized help and a high degree of knowledge. Transmission of shares The legal transfer of share ownership from one person to another is referred to as a transmission of shares. This might happen for a variety of reasons, including inheritance, judicial proceedings, or bankruptcy. When a shareholder dies, their shares are usually transferred to their legal heirs or beneficiaries. The procedure of transferring ownership of these shares entails updating the share register with the details of the new owner. Compliance with legal obligations, such as the filing of required Paper works, is critical in the transfer of shares. Noncompliance with such rules might lead to delays and legal difficulties. Transfer of shares The procedure in which transferring ownership of shares from one person to another takes place is referred to as a share transfer. When investors purchase and sell shares of firms that are publicly traded, this transaction frequently takes place on the stock market. A private contract between the buyer and seller or a stock exchange can be used to transfer shares. The seller must notify the firm and update the share register with the buyer's details in order to effectuate the transfer. After the buyer pays the purchase price, the seller hands over the share certificate. The legal requirements and compliance with all relevant laws and regulations regulating the transfer of securities must be met for the transfer of shares. IEPF Dividend Recovery A percentage of a company's profits are given back to its shareholders as dividends, which might come in the form of cash, stock, or other forms as chosen by the board of directors. These dividends are instead transferred to the Investor Education and Protection Fund (IEPF) if they remain unclaimed for seven years after being paid out. Investors may fail to receive their dividends for a number of reasons, such as mistakes in share transfer or transmission, faulty shareholder data, or unclaimed bonus shares. Fortunately, without the involvement of a judge, our team of experts can help people get their unclaimed money back from the IEPF. Our team of consultants is equipped with the knowledge and experience necessary to guide clients through the process of recovering their unclaimed dividends. We are dedicated to offering full support, which includes help with paperwork, filling out application forms, and submitting the required papers. We recognize the special difficulties inherent in the rehabilitation process. In order to monitor the progress of your application and guarantee a successful and speedy recovery procedure, we also periodically follow up with the IEPF.
Indian citizen who wants to claim their IEPF shares must present self-certified copies of their Pan Card and Aadhaar Card in order to establish their identity. However, if the applicant is an NRI, they must also provide any additional available identification Documents, along with a self-attested copy of their passport or an Overseas Indian Card (OIC) issued by the Ministry of Home Affairs (MHA). For foreigners, a copy of their passport or PIO Card that has been apostilled correctly in accordance with the Hague Convention is required instead of an Aadhaar Card. These papers are required to confirm the claimant's identification and guarantee that the legitimate owner will be paid their shares from the IEPF.
OCI means Overseas Citizen of India, and OCI number means the number given to them similar to a passport number.
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