Overview:Recovery of UltraTech Cement Shares from IEPF

Mumbai, Maharashtra, serves as the corporate headquarters for the Indian cement manufacturer UltraTech Cement. Since its founding in 1983, the business has expanded to rank among India's top cement producers. With a 116.75 million tonne annual capacity, UltraTech Cement operates in five nations, including India, the United Arab Emirates, Bahrain, and Sri Lanka. A significant competitor in the Indian cement market, UltraTech Cement is renowned for its broad product offering, emphasis on sustainability, and dedication to providing high-quality goods and services to its clients.

Revenue growth for the company exceeded its three-year CAGR of 13.8% by 20.03%. The Company's equity shares are held in Demat form to a degree of over 98%. The equity shares of the company are traded on the National Stock Exchange of India Limited and the BSE Limited. The company's net profit for the most recent fiscal year, as reported in March 2020, was Rs. 40649.19 crores, with additional income from sources of Rs. 726.58 crores. UltraTech Cement is renowned for paying out high dividends to its stockholders. The business has distributed 17 dividends to investors as of this writing. Additionally, the business has declared a 130% per share dividend for 2020 alone.

What is an unclaimed dividend?

An unclaimed dividend is a dividend which the company is paying, but the shareholder has not yet taken the dividend or claimed the dividend. Unclaimed dividends are sums of money that, after being announced as dividends, go unclaimed by corporate shareholders. A dividend is a form of a payment made by a company to its shareholders that comes in the form of money or extra stock. If a shareholder owned the firm's shares on the record date- the day the company compiles, the list of shareholders qualified to receive the dividend-then that shareholder is entitled to receive dividends.

However, there are instances when shareholders may fail to collect their dividends for a variety of reasons, including a change of address, ignorance, or negligence. Unclaimed dividends are those that go unclaimed for a predetermined amount of time. The unclaimed dividend is transferred to the IEPF after seven years of holding it. Shareholders can submit an online application and the required paperwork to the IEPF to claim their unclaimed dividend.

IEPF Form -5

In order to collect shares and dividends that were transferred to IEPF in India, shareholders of a corporation must fill out Form IEPF-5. The Ministry of Corporate Affairs created the IEPF to safeguard investor interests and guarantee the distribution of unclaimed dividends, matured deposits, and other similar money to their rightful owners.

To claim shares that have been transferred to the IEPF as a result of non-dividend payment or non-receipt of shares, use Form IEPF-5. The form requests information from the shareholder, including their name, address, PAN, and specifics about the shares they wish to claim.

The IEPF will validate the claim and transfer the shares to the shareholder's Demat account when the shareholder has completed and submitted Form IEPF-5, together with the required supporting Paper works. It is crucial for shareholders to promptly claim their shares since, after seven years, unclaimed shares in the IEPF will be transferred to the central government's account and will no longer be available for shareholder claims.

What are the uses of IEPF

Here are some uses of the Investor Education and Protection Fund:-

1. Transfer of unclaimed dividends: Unclaimed dividends that are in the company's unpaid dividend account for seven years are transferred to the IEPF with assistance from the IEPF. The IEPF then utilizes this money for the purposes outlined in the Companies Act or to provide dividends to qualifying shareholders.
2. Transfer of unclaimed shares: The IEPF assists in transferring shares the IEPF that have gone unclaimed for seven years. The simplified and effective mechanism for claiming the shares is then provided by the IEPF, which aids the legitimate owners in doing so.
3. Investor Education: Through a number of programmes, including seminars, workshops, and campaigns, the IEPF also encourages investor education and awareness. These programmes aid investors in understanding their obligations, rights, and risk exposure while making investments.
4. Investor Protection: By ensuring that businesses abide by different rules of the Companies Act, the IEPF also offers investor protection. Companies that breach investor rights or engage in fraud are subject to investigation and punishment by the IEPF.
5. Refund of deposits: Additionally, the IEPF aids with the repayment of deposits that have not been claimed by depositors or have been unclaimed for a predetermined amount of time. Such deposits are returned to their proper owners by the IEPF.

Procedure for Recovering Shares from IEPF

1. Completing Application Form

The applicant must enter specific information while completing the e-form to request UltraTech Cement shares from IEPF:

• Their personal information is included in these particulars
• Information about the corporation and the particulars of the shares being claimed.
• In addition, the form requests the applicant's 
  • Aadhaar Card number, 
  • passport/OCI/PIO card number, and 
  • Year-by- year information on the stocks and deposits being claimed. 
• The form must also include information about the amount being claimed as well as the applicant's bank account. 

The applicant must complete the form and send it to the Nodal Officer or Registrar of the corporation that owes the money, together with the aforementioned supporting Paper works.

2. Submission of the claim to the company

The claimant must provide certain Paper works to the company's IEPF Nodal Officer or Registrar in order to request a refund from the IEPF Authority for UltraTech Cement shares. 

• A Form IEPF-5 that has been printed and signed, as well as proof of eligibility like the claimant's Aadhaar card. 
• The claimant must also submit a copy of the acknowledgement and the SRN number. 
• Genuine stock certificates, 
• A stamped receipt in advance with the claimant's and witnesses' signatures and an original indemnity bond bearing the claimant's signature are also needed. 
• For Demat accounts, copies of the client master list should also be provided. 
• A passport, OCI or PIO card, and a cancelled check, which can be proved as evidence of Indian citizenship, can all be shown.

3. Claim submission by the company to IEPF authority

After a claimant submits a claim form for recovery of UltraTech Cement shares, the corporation has 15 days to create a verification report. The report should be put together with the claimant's supporting Paper works and sent to the IEPF Authorities for evaluation.

4. Refund to claimant by the IEPF 

The IEPF Authority has 60 days to decide on the reimbursement request after obtaining the verification report from the relevant corporation that approved the claimant's UltraTech Cement shares application. The IEPF Authority will issue a penalty order for the amount owing if the claimant is determined to be entitled to reimbursement. The IEPF Authority and the appropriate officer will send a bill to the pay and accounts officer for payment after the claimant has been given access to the shares with the consent of the competent authority. The claimant will then have their Demat account credited with the entire value of their rights or credit for the shares.

Services offered by Enterslice

• Recovery of Shares from IEPF

We provide our services in order to help in the recovery of shares that have been transferred to the IEPF but have yet to be claimed. From the initial application through the final reimbursement by the IEPF, our services encompass thorough support. We can help with paperwork, including completing application forms and submitting required paperwork. Our knowledgeable team works to make the procedure as simple as possible for clients by keeping them updated timeply on the status of their applications. Our objective is to make the procedure of obtaining payment for unclaimed shares for clients easy and stress-free.

• Transmission of Shares

Transferring ownership of shares from a deceased shareholder to their legal heirs is referred to as the "transmission of shares." This is often accomplished through a legal procedure in which the legal heirs are required to present the relevant evidence of their claim to the shares, such as a death certificate and a will. Shares from a shareholder who is unable to handle their shares owing to mental impairment or other circumstances may also be transferred as part of the transmission procedure.

• Transfer of Shares

When the ownership of shares is passed from one person or business to another is referred to as a share transfer. This can be accomplished through a business deal in which the buyer buys the shares from the seller. The movement of shares from one account to another, such as from one Demat account to another Demat account or from a physical certificate to a Demat account, can also be considered a part of the transfer of shares. In this situation, a stockbroker or a depository participant can handle the transfer.

• IEPF Dividend Recovery

A dividend is a part/portion of a company's profits that the board of directors chooses to distribute to shareholders as cash, stock, or another form. The IEPF receives the dividend payment as unclaimed dividends if it is not claimed within seven years. However, due to problems like illegal share transfers or a lack of shareholder information for unclaimed bonus shares, many investors need to staff provides knowledgeable guidance to be able to claim their dividends. We help clients get their unclaimed earnings back from the IEPF without encountering any legal issues.