Procedure for Reclaiming Reliance Industries Shares / Dividend from IEPF

Recovering lost shares and dividend can be time-consuming and difficult. To minimize future concerns with missing shares or other securities, investors should keep their investment records and paperwork up to date. Furthermore, investors should protect their savings by storing them in a secure location and constantly checking their investment portfolio. This article will go through how investors can reclaim their Reliance Industries shares from the IEPF Authority, as well as the measures they must take.

Quick look about Reliance Industries Limited and its shares

Reliance Industries Limited, one of India’s largest private sector companies, is worth over $100 billion. Individuals and institutions like its shares. The Indian government’s Investor Education and Protection Fund (IEPF) Authority, which protects investors, may hold unclaimed shares.

The Companies Act, 2013 allows the transfer of shares to IEPF if shares go unclaimed or unpaid for a specified time.

RIL is in petrochemicals, refining, oil and gas exploration, retail, telecommunications, and media. India’s largest retailer, Reliance Jio Infocomm, and Reliance Oil and Gas are the company’s flagships. RIL operates in 50+ countries.

RIL invested extensively in renewable energy to reach net-zero emissions by 2035. In Jamnagar, Gujarat, the company established a solar factory and 4,000-acre green energy complex. As of 2021, RIL is one of the 50 most valuable companies. 3% of India’s GDP comes from the corporation’s 190,000 workers.

What is the IEPF and what is its purpose?

On September 7, 2016, the government of India established the Investor Education and Protection Fund (IEPF), a legal framework to control and protect investor funds, in accordance with Section 125 of the Companies Act, 2013.

The IEPF’s tasks include refunding and recovering shares, maturing deposits/debentures, unpaid dividends, and raising investor awareness. It also ensures that depositors’ legal expenditures paid in pursuing action proceedings be reimbursed.

Why have your shares been transferred to IEPF?

According to government regulations, any dividends on shares that have not been claimed for seven years or more must be transferred to the Investor Education and Protection Fund (IEPF) by the corporation. A corporation is required to transfer shares to IEPF if the dividend is not claimed for seven consecutive years.

Previously, corporations would take advantage of the investor’s ignorance and keep the money for themselves if the dividend was not claimed. Following the discovery of this oversight, the government enacted the IEPF legislation, which requires corporations to transfer shares that have not been claimed for seven years in a row.

Role of IEPF Authority

The IEPF Authority was set up to protect the interests of investors and educate them about their rights and responsibilities. The roles of IEPF Authority are as follows:

• The IEPF Authority keeps a database of unclaimed dividends, shares, and securities for investor protection. The Authority also prosecutes enterprises that fail to transfer cash to it on schedule.
• When claimed, these funds are returned by the IEPF Authority. The Authority invests these monies in various instruments for returns. Unclaimed assets entrusted to the Investor Education and Protection Fund (IEPF) are managed by the IEPF Authority.
• Investors need IEPF Authority protection and education. The Authority informs investors of their rights, obligations, risks, and asset protection options. The Authority holds investor education seminars and workshops on these issues.
• The IEPF Authority also prosecutes enterprises that violate the enterprises Act by failing to transfer unclaimed funds to the Authority. The Authority can sue such corporations to recover investor funds (shares). The Authority can also sue defaulting firms under the Indian Penal Code, 1860, and the Code of Criminal Procedure, 1973.
• The IEPF Authority has a strong investor complaints system. Investor complaints are handled by the Authority. Investors can phone the Authority or make complaints online.
• IEPF Authority actions have also increased openness and efficiency. Several digital efforts have streamlined fund transfers and investment returns by the Authority. The Authority’s website is now more user-friendly, so investors can access all their investment information.
• The IEPF Authority is also strengthening investor protections. The Authority has issued various recommendations and circulars to guarantee compliance with the Companies Act regarding unclaimed cash transfer to the Authority. The Authority has worked with regulators and industry groups to attract investment to India.

Sources of Unclaimed Dividend

Following are the sources of unclaimed dividend:

• Failure to update shareholder contact information with the company’s registrar and transfer agent (RTA) is a common reason. The corporation deposits dividends into shareholders’ RTA-registered bank accounts. The dividend is unclaimed if the shareholder has not updated their bank account or provided erroneous information.
• Uncashed dividend warrants are another cause of unclaimed dividends. Shareholders must provide physical dividend warrants to their banks for encashment. Unless the shareholder cashes the warrant in time, the dividend amount goes unclaimed.
• The legal heirs of deceased shareholders may need to be informed of the unclaimed dividend. The legitimate heirs must produce proof to obtain the dividend.
• Unclaimed dividends might also result from RTA database problems or technical issues. Technical challenges may have prevented the corporation from crediting dividends to owners’ accounts, leaving unclaimed dividends.

Steps to recover lost shares

If you have lost or suspect that your Reliance Industries shares have been stolen, follow these actions to recover shares:

• The initial step is to make direct contact with Reliance Industries. They can supply you with information about your shares or assist you with the recovery process (recovery of IEPF shares).
• Contact your broker or investment advisor if you purchased the shares through them to see if they have any information about your missing shares.
• Contact the registrar and transfer agent, Karvy Fintech Private Limited serves as Reliance Industries’ registration and transfer agent. You can get in touch with them to see if they have any information regarding your missing shares.
• If you suspect your shares have been stolen, you should submit a police report. They can investigate the situation and try to reclaim your shares.
• If everything else fails, investors can seek help from SEBI to recover their lost shares. SEBI has an investor grievance redressal process in place to assist investors with their questions and complaints.

Steps taken by Reliance Industries Limited to reduce the Unclaimed Dividend/Shares

RIL owed the IEPF Authority Rs. 2,932 crores ($398 million) in unclaimed dividends as of March 2021. This is a large sum because many shareholders haven’t claimed their dividends in years. RIL has been taking steps to reduce the number of unclaimed dividends:

• RIL is encouraging shareholders to update their bank account information and send out dividend pay-out reminders on schedule. The company has also made it possible for stockholders to have their dividends credited straight to their bank accounts, making the process more convenient and streamlined.
• RIL has also been promoting dividend claiming among its shareholders by informing shareholders about dividend claiming procedures and deadlines, the company has been holding investor education seminars and posting information on its website.
• RIL has also improved corporate governance and ensured compliance with dividend pay-out and unclaimed dividend requirements. The investor relations team works with shareholders and regulators to guarantee transparency and efficiency.

How to check whether Reliance Industries Shares are in IEPF?

Follow the procedures below to determine whether your Reliance Industries shares are in the IEPF or not:

• Go to the portal.
• Fill in the investor’s name, father’s name, folio number, DP-ID, Client-ID, and Account Number.
• Finally, press the search button.
• Please keep in mind that you can search using any of the combinations listed below.
• Investor Name and Father/Husband Name
• Folio Number (should be same as per the certificate)
• DP-ID, Client-ID, and Account Number should be entered without any space and should be separated by a hyphen in the given format (DPID-ClientID-Account Number)

Method for claiming unclaimed dividends and Reliance Industries shares from the IEPF authority

Follow the steps below to file an IEPF claim:

• The IEPF website provides access to the IEPF-5 form on the MCA portal. Claimants are urged to carefully follow the instructions contained in the instruction package available on the IEPF website.
• Submit the form once it has been completed. An acknowledgment with a “Submit Request Number” (SRN) will be created. Please keep this SRN handy for further tracking of the form.
• Take a printout of the form as well as the acknowledgment.
• Now, in the envelope labelled “Claim for a refund from IEPF Authority,” submit the original copy of the indemnity bond, copy of acknowledgment, share certificate, and IEPF Form 5 along with a self-attested Aadhaar card, details of the bank account linked with the Aadhaar card in which the claim is to be received, and Demat account number to the company’s Nodal officer (IEPF) at its registered office.
• The concerned company will now validate the claim form, and the IEPF authorities will provide the refund of unclaimed shares and dividends in the client account based on the verification report.
• The IEPF authorities must respond to the company’s verification report within 60 days.

Refunding from IEPF is a very long and difficult process that may take more than 8-12 months because IEPF only has one office in Delhi.

Takeaway

Reliance Industries investors can easily claim unclaimed shares and assets through the IEPF Authority. They can prevent losing their unclaimed shares and other securities by following the IEPF Authority’s instructions. The IEPF Authority safeguards investors and the Indian stock markets. Investors should use the Authority’s investor education, grievance redress, and regulatory compliance programs. The Indian financial markets will certainly improve in the future years as the IEPF Authority protects investors.