November 24, 2025
6 mins read
When a company declares a dividend but a shareholder does not claim it, then it is called an “unclaimed dividend”. But why would a shareholder not claim a dividend, as it is a source of income for him?
At times, companies have outdated contact information for a shareholder. Besides, sometimes shareholders are not even aware when dividends are announced.
Suppose a company declares a dividend, but a shareholder does not claim it within 30 days; then it will be considered an unclaimed dividend.
A company that has declared a dividend is under an obligation to pay unclaimed dividends. However, if a dividend is not claimed for more than seven years, a company can transfer it to the Investor Education Protection Fund Authority (IEPF), which is under the Ministry of Corporate Affairs.
An unclaimed dividend is a payment that a company has made to a shareholder, but the shareholder hasn't received it. This happens more often than you might think. While a company isn't required to declare a dividend, once it does, it is legally obligated to pay it to its shareholders.
Today, with demat accounts linked to bank accounts, many dividends are paid automatically. But there are still a few common reasons why people don't claim their dividends:
Outdated Information: The shareholder may have moved or changed banks, but not updated their information.
Wrong Information: A payment can fail if the bank account number or IFSC code is wrong.
Death of a Shareholder: If a shareholder dies and their nominee or legal heir is not on record, the dividend is not claimed.
Let's say Mr. Sharma, an investor, bought shares in a company a long time ago, when shares were still paper certificates. The company kept paying dividends over the years. But Mr. Sharma had moved to a new city and never told the company about it.
The company sent dividend checks to his old address, but they always came back. The company didn't have his email address or updated phone number because the investment was made before the digital age. The bank account he had given them years ago was now closed.
The company followed the law and sent all of the money it owed Mr. Sharma in dividends to the Investor Education and Protection Fund (IEPF), a government agency. This happened after seven years of the dividends going unclaimed.
It is easy to check online for any unclaimed dividends. You can check to see if you have any money waiting for you by going to the official IEPF government website and doing the following:
Step 1:
Go to the IEPF Portal. Visit the IEPF's official website and look for the "Services" link. You can "Search Unclaimed/Unpaid Amount" under this.
Step 2:
Fill in your information. You will see a search page. You can look up a shareholder by typing in their full name. If you have it, you can also search using the share folio number or the demat account number to get more specific results.
Step 3:
Look over the results of the search. The website will show you a list of names and other information that match your search. Check out the list to find the right entry for the person you want to find.
Step 4:
Look at the amount that hasn't been claimed. You can click on the right person to see the details of the unclaimed dividend amount that has been sent to the IEPF.
The Investor Education and Protection Fund (IEPF) must get the money if a dividend is not claimed for more than seven years. But that doesn't mean the money is gone for good.
This money can still be claimed by the rightful shareholder or their legal heirs at any time in the future. They just need to follow a certain set of steps and file a claim with the IEPF authorities. This means sending in an application form and the legal papers that show they own the property.
There is a clear but complicated online process for claiming your unclaimed dividends from the IEPF. This is a step-by-step guide to help you get through it.
Step 1: Go to the IEPF website. Visit the IEPF website. You can click on the "Claim Refund" link in the "Services" tab on the home page.
Step 2: Open the MCA Portal. You will be taken to the website of the Ministry of Corporate Affairs (MCA). You will need to enter your user ID and password to log in.
Step 3: Get to the IEPF-5 Form. Once you're logged in, click on the "MCA Services" tab. Find the e-form called "IEPF-5" in the dropdown menu and click on it.
Step 4: Complete the form online. Your main application is the IEPF-5 form. You need to give all the information that is needed, like your name, address, and phone number.
Step 5: Give information about your finances. To prove your identity and investment, you will need to enter your PAN number, demat account number, and the folio number of the shares.
Step 6: Include your bank details. Tell us where you want the refund to go by giving us your bank account information. You must include a copy of a cancelled cheque.
Step 7: Upload the documents you need. You need to scan and attach all the necessary files. This includes a copy of your PAN card and a document that proves your identity and where you live.
Step 8: Send in the form. When you send in the finished form on the MCA portal, the system will send you an SRN (Service Request Number) acknowledgement for your records.
Step 9: Sign and print the form. You need to print out the SRN acknowledgement and the filled-out IEPF-5 form. Please sign these papers where it says to.
Step 10: Send in the physical papers. Send the signed form, the SRN, and all the other documents that support it to the Nodal Officer of the company in question.
Step 11: Check the company. The company's Nodal Officer will check all the papers you sent. They will look at their records to see if your claim is true.
Step 12: Report on E-Verification. The Nodal Officer will send an online e-Verification Report to the IEPF authorities after the verification is successful. This will prove that your claim is real.
Step 13: Get IEPF approval. After that, the IEPF will look over your claim. It could take up to 60 days. If they need more information, they might get in touch with you.
Step 14: Start the refund. The IEPF will approve the refund once they have successfully verified your claim. You will get a confirmation email at the address you used to sign up.
Step 15: The money was sent. Lastly, the IEPF authority will put the money from the unclaimed dividend directly into the bank account you gave them in the form.
The dividend was sent to an old address. Your dividend cheque could end up at the wrong address and be sent back if you haven't told the company or registrar about your new address.
Bank account that is closed or not being used. If your bank account is closed or no longer active, you won't be able to credit the dividend online. The money won't get to you.
The small dividend amount is not taken into account. Sometimes, the dividend is so small that someone might not think it's worth their time to claim it, so they don't.
Heirs don't know about the shares. If a shareholder dies and their family doesn't know about the shares they owned, the dividends will keep going unclaimed.
Old KYC or contact information. You won't get any alerts or reminders about the dividend payment if your mobile number, email, or PAN information is not up to date.
According to Section 124 of the Companies Act, 2013, if you don't claim your dividend for seven years in a row, the money goes to the Investor Education and Protection Fund (IEPF). But the cash is still there.
You or your legal heirs can still get it by filling out Form IEPF-5 and sending in the necessary papers. It might take a few weeks, but there is a way to give unclaimed dividends and shares back to the person who owns them.
Additional Read: What are Unclaimed Funds?
Any shareholder can easily end up with dividends that they don't claim. But it's easy to see how to get your money back.
As an investor, a smart thing you can do is to always give your stockbroker your up-to-date contact information, bank account number, and KYC documents. This easy step will save you from having to deal with all the problems that come with claiming an unclaimed dividend later.
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You can contact the investor relations team of the company you have invested in. Or, you can even visit the website of the Investor Education Protection Fund Authority (IEPF) to find your unclaimed dividends.
You have to follow a detailed process by going to the IEPF’s website, filling out a form, and providing all the required documents to claim your unclaimed dividends
Suppose Mr. A invested in the share of a company called X. X announced a dividend but A did not claim it for 30 days. Then, such a dividend is called an unclaimed dividend.
Often shareholders close one bank account but do not update the details of their new bank account with their stockbroker. Or, their contact details are not updated with the company they have an investment in. Such causes lead to unclaimed dividends.
Unclaimed dividends are taxable. When they are announced and payable, they should be added to your income. You must show them in your tax returns, whether you have claimed them or not.
If dividends are not claimed within seven years of their announcement, a company can transfer them to the IEPF.
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