The Indian government reportedly plans to introduce an integrated portal by February 2024 to allow investors to receive their unclaimed dividends and shares more easily, a proposal announced as part of the Union budget for 2023-24.
Why It Matters: To simplify the process, the Investor Education and Protection Fund Authority (IEPFA) is working on reducing documentation requirements, the Economic Times reported, citing a source.
The portal aims to expedite the retrieval of unclaimed dividends and shares, providing investors with a convenient way to access their investments. This will speed up the settlement process and save investors time.
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Currently, unclaimed shares, dividends, and matured debentures are transferred to the IEPFA after seven years. The unclaimed amount with the IEPFA was ₹5,262 crore as of March 2022, showing a steady increase.
An integrated portal has been proposed to improve user convenience, allowing investors to check for unclaimed shares or dividends held by the IEPFA easily. Claim forms and verification will be done online, eliminating the need for physical submissions and expediting settlement times.
The government aims to modernize and secure the process by leveraging technology. The integrated IT portal aims to protect investor interests and reinforce the integrity of the financial sector. It will provide a transparent and user-friendly interface, including a comprehensive dashboard for accessing information.
During the budget announcement, Finance and Corporate Affairs Minister Nirmala Sitharaman had emphasised the importance of investor protection and the easy reclamation of unclaimed shares and dividends.
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