As per IEPF rules, if the dividend is not claimed for 7 years or more, the shares relating to that dividend will be transferred to IEPF. Hence your shares would have been transferred to IEPF.
Q: I had opened a demat and a bank account with ICICI when I started my career. I had also bought some shares in that demat account but due to multiple transfers and job changes I could not keep track of my demat account and also closed my bank account as it was an old salary account. Recently, when I checked my demat account statement, I found that the shares have been transferred to IEPF. I am not sure how the shares lying in my demat account can be transferred to IEPF. Also, how can these shares be claimed back?
Answer: Since you had opened a demat and bank account long back, you may not have updated the KYC (Know Your Customer) documents in these accounts. Further, since you had closed your bank account which was linked to your demat account, no dividend payment from the company could be credited to your bank account as you had already closed the linked bank account.
As per the rules of IEPF (Investor Education and Protection Fund), if the dividend is not claimed for 7 years or more, the shares relating to that dividend will be transferred to IEPF. Hence your shares would have been transferred to IEPF.
Now to claim those shares back in your demat account, you need to write to those companies along with your demat transaction details showing your KYC documents, signature verification from the bank and transfer of shares to IEPF. Then, after due verification, companies will issue you an eligibility letter and then you can file IEPF claim online and submit the documents to the companies concerned. The government is handling the IEPF claim.
After companies verify your claim, the process will go to IEPF authority and once they approve your claim, shares will be credited back to your demat account by IEPF authority.
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