Why can’t I find my shares or dividends in my Demat account?
If you cannot find your shares or dividends in your Demat account, it may be due to a couple of reasons. One common reason is that the shares or dividends may have been transferred to the Investor Education and Protection Fund (IEPF) after being unclaimed for a specific period, typically seven consecutive years. This is done to safeguard the interests of investors and ensure that funds are not left unattended indefinitely.
When shares or dividends are transferred to the IEPF, it usually happens if you haven't claimed them for a long time or if the company was unable to contact you due to outdated information. Reasons for this could include:
- Failure to update your contact details: If you’ve moved or changed your name and didn’t inform the company or your broker, they might not be able to reach you.
- Inactivity on your account: If there are no transactions (buying or selling shares, claiming dividends) for seven years, the company may assume you’ve lost interest and transfer your assets.
- Missing or incorrect documentation: If the company lacks the necessary documents to verify your identity or ownership, they may hold onto the shares or dividends until they receive the required information.
If your shares or dividends have been transferred, you won’t be able to see them in your Demat account. Instead, you will need to follow a specific process to reclaim them.
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