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MCA-SEBI Framework to Ease Claims on Unclaimed Shares and Dividends

27 August 20251 min read
BANKING & FINANCEMCA-SEBI Framework toEase Claims onUnclaimed Shares andDividends27 August 2025safalsetu.com

Why in the news

The two bodies want a uniform path for investors to reclaim forgotten holdings.

Key facts

  • Aim: common shareholder identification and simpler share transmission.
  • Hurdle: every company asks for different affidavits and documents.
  • MCA wants companies to run campaigns to trace missing shareholders.
SEBI stepUse
MitraSearch inactive mutual fund folios
DigiLocker linkFetch and keep fund and demat statements
Nomination drivesEasier identification

Significance

  • Easier recovery, fewer grievances, more market trust.

Exam angle

  • Fund: IEPF.
  • Section: 124.
  • Tool: Mitra.

Test yourself

1. After how many consecutive years of non-claim are dividend and shares transferred to the IEPF?

The notes state seven consecutive years.

2. Which Companies Act, 2013 section requires moving unclaimed dividend to an unpaid dividend account?

Section 124 mandates the unpaid dividend account.

3. Which SEBI initiative is a searchable database of unclaimed or inactive mutual fund folios?

Mitra is the searchable database for such folios.