Unclaimed Dividend refers to the dividend amount declared by a company that has not been claimed or received by the shareholder within the stipulated time. This often occurs when investors forget to update their bank details, change addresses, or misplace dividend warrants. Understanding how unclaimed dividends work and how to reclaim them is essential for shareholders to safeguard their rightful earnings.

As per SEBI regulations and the Companies Act, 2013, if a shareholder does not claim the dividend within 30 days of its declaration, the amount is transferred to an Unpaid Dividend Account maintained by the company. If it remains unclaimed for seven consecutive years, it is then moved to the Investor Education and Protection Fund (IEPF) managed by the Government of India. Once transferred, shareholders can reclaim their dividend by filing an application with the IEPF Authority.

To check for any unclaimed dividend, investors can visit the company’s investor relations page or the IEPF website and search using their name, PAN, or folio number. It’s also important to ensure that the demat account and bank details are up to date with the registrar and transfer agent (RTA) or the depository participant (DP).

To claim the unclaimed dividend, shareholders must submit an online form (IEPF-5) along with supporting documents such as identity proof, shareholding details, and dividend claim evidence. After verification, the IEPF Authority processes the refund to the investor’s registered bank account.

Regularly monitoring your dividend statements and keeping personal details updated can help avoid losing access to your hard-earned income. Staying informed about the unclaimed dividend process not only protects investor interests but also ensures compliance with SEBI’s transparency and investor protection norms.