Unclaimed And Unpaid Dividends – A Charm For Investors

Jovin Jose & Arva Sadliwala, BBA LLB, MIT WPU, School of Law

ABSTRACT

People quite often tend to forget things, let it be keys, phones, wallets, etc which are tangible so it is very normal to forget intangible things that they own such as shares and investments. To overcome this problem and to eradicate such forgetful investment Section 124 and 125 of the Companies Act, 2013 was laid down. It made sure that the companies follow a certain procedure for unpaid dividends and then such investments be utilized by the government to educate investors on their investments for which Investors Education and Protection Fund Authority was formed and ‘The Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules’, 2016. With this stated the Research Paper is going to dive deep into the above-mentioned rules and regulations to simplify the method for investors to reclaim their investments or dividends. We would also identify the difficulties and suggest ideas to rectify these difficulties. The major problem is that investors do not realize that they have not claimed dividends since a very long time and due to which the IEPF takes over the dividends and shares, the research paper would put in an effort to solve this issue.