Reliance to transfer unclaimed shares to govt fund by this date: Check if yours are in RIL’s list

If you hold some shares of Reliance Industries Limited (RIL) then do check if you have claimed and received dividend(s) from them. This is because if you have not claimed dividends on RIL shares and seven consecutive years or more passed, then the shares will be transferred to a government fund.

Reliance Industries via a public notice dated May 24, 2024, informed its shareholders that these shares will be transferred to the Investor Education and Protection Fund (IEPF) Authority which falls under the Ministry of Corporate Affairs (MCA). “In case the Company does not receive any communication (claiming the unclaimed/unencashed dividend) from the concerned shareholders on or before August 26, 2024, the Company shall with a view to complying with requirements set out in the Rules, dematerialise and transfer the shares to IEPF Authority by way of corporate action as per procedure stipulated in the Rules,” said Reliance Industries in the public notice.

Reliance will transfer these shares to the government, if shareholders do not come forward to claim it

As per the public notice of Reliance Industries, “The Company has so far transferred to IEPF Authority, on respective due dates, all shares in respect of which dividend(s) for the financial year 2015-16 or before had remained unpaid or unclaimed for a period of seven consecutive years or more. The Company has, vide its letter dated May 21, 2024, communicated individually, to the concerned shareholders whose shares are liable to be transferred to IEPF Authority during the financial year 2024-25 for taking appropriate action.”

How to check if your Reliance shares will be transferred to the specified government fund?

Reliance Industries has created a dedicated webpage using which you can check if your Reliance shares are eligible for transfer to the Investor Education and Protection Fund (IEPF) Authority which falls under the Ministry of Corporate Affairs.

“For administration of Investor Education and Protection Fund Government of India has on 7th September 2016 established Investor Education and Protection Fund Authority under the provisions of section 125 of the Companies Act, 2013,” as per the IEPF Authority website.

Here’s a step-by-step guide to check:
Step 1: Go here: https://www.ril.com/investors/shareholders-information/dividend-sharesStep 2: Click on ‘Details of Equity Shares Liable for Credit to IEPF Authority’. Once clicked there will be two options – ‘Year Interval’ and ‘DP ID/Client ID/Folio Number. Enter both the details and click on the ‘Apply’ option.
A new webpage will open where you can see details of any of your Reliance shares if they are eligible for a transfer to IEPF.

However, if your shares are already transferred to IEPF Authority then click on ‘Details of Equity Shares Transferred to IEPF Authority’ and enter the ‘Base Year’ and DP ID/Client ID/Folio Number.

Source: Reliance Website as of May 25, 2024

How to claim the Reliance shares which are already transferred to IEPF Authority?

Even if your shares were transferred to the IEFP Authority, you can very well claim it now. As per frequently asked questions (FAQs) by Reliance Industries, any person whose shares/unclaimed dividends, etc., have been transferred by Reliance Industries to IEPF Authority, may claim the shares by submitting an online application in Web-From IEPF-5 which is available on the IEPF Authority website. The link to access the IEPF-5 form is this- https://www.iepf.gov.in/IEPF/refund.html

Further, if you need any guidance on how to fill out this online form, an instruction kit is also available on the IEPF Authority website.

As per the FAQs, PAN is mandatory for submission of the IEPF-5 form.

“Application can also be made by any successor, legal heir/representative of the deceased person,” said Reliance Industries in the FAQ.

Source: IEPF website as of May 25, 2024.

When are shares transferred to the IEPF Authority?

Company Secretary (CS) and corporate lawyer Vinita Sahitya, Founder, of LexFulcrum, a law firm, shares her experience in regard to why shares may get transferred to IEPF Authority.

“Dividend from shares usually comes directly into the bank account of the shareholder. However, if the bank account is not active for some reason like freeze, lapse of KYC, and other non-compliances, then the dividend may not get credited resulting in the commencement of the countdown of seven consecutive years or more,” she says.

Sahitya also says that she has experienced cases where the family members of a deceased shareholder did not claim the dividend on shares, as they were not even aware of such investment in shares by the deceased shareholder. “Hence investors must also inform their family members about the folio number, DP ID, and other relevant details about shares and other investments,” she says.

The chances of dividends getting unclaimed are higher in case the shares are held through physical certificates and are not dematerialised. “People who invest or hold shares of private companies which are not mandated by the law to dematerialise their shares also need to be cautious,” says Sahitya.

Whom to reach out to in case of any query about Reliance shares getting transferred to IEPF?

As per the public notice by Reliance KFin Technologies Limited is the company’s Registrar and Transfer Agent (RTA) and any queries regarding the transfer to IEPF and related rules be directed to them. So, if you have any queries about the transfer of shares to IEPF, contact KFin Technologies here:
Address: Selenium Tower B, Plot 31 & 32, Gachibowli, Financial District, Nanakramguda, Hyderabad- 500032.
Toll-free contact number: 1800-309-4001 (from 9 am to 6pm) on all working days
Email: rilinvestor@kfintech.com
Website: www.kfintech.com