Refund of unclaimed investments in companies made easier

The ministry of corporate affairs has made it easier for investors to claim refunds of their unclaimed dividends, deposits and application money that companies have transferred to the Investor Education and Protection Fund (IEPF).

Companies Act mandates that businesses transfer to IEPF all the dues to shareholders which are unpaid or unclaimed for seven years. Shareholders can seek a refund of the same from IEPF. The latest move is to make the process of refund easier for shareholders. The funds that companies have to transfer to IEPF includes unclaimed dividend, matured deposits, matured debentures, application money due for refund, or interest on it and redemption proceeds of preference shares.