Unclaimed shares and dividends will now be transferred faster, with a portal launching soon..
After a long wait, the Ministry of Corporate Affairs is launching an integrated portal this month. Its purpose is to facilitate the speedy transfer of old unclaimed shares and dividends to investors. People familiar with the matter said that the portal has been in development, preparation, and testing for nearly two years. Through this portal, investors will be able to check and submit their claims. If investors do not claim their shares, dividends, and matured debentures for seven years, companies transfer them to the Investor Education and Protection Fund Authority (IEPFA), which falls under the Ministry of Corporate Affairs.
People familiar with the matter told ET that the Appointments Committee of the Cabinet, headed by the Prime Minister, has also approved the creation of a new Chief Executive (CEO) position for the IEPFA. Currently, Anita Shah, a Joint Secretary in the Ministry, is handling the IEPFA along with her other duties.
The government has taken these new steps to reduce delays in the transfer of old unclaimed shares and dividends. Technology is being used for this purpose, processes are being improved where necessary, and the IEPFA staff is being increased.
Announced in the Budget
The source said that the new CEO could be from the private sector or another government department, which would work under the ministry. This portal was announced by Finance Minister Nirmala Sitharaman in her February 2023 budget speech. It will integrate data from the MCA-21 system for corporate filings, depositories, and the Public Finance Management System. It will help investors submit claims, reduce mundane tasks through an application programming interface (API), speed up the entire refund process, and reduce the scope for errors by eliminating human intervention.
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