You Deserve Your Money back

Protection

Recovery

Wealth

NIRC OF

ICAI

Wealth Protection

o Most of us work hard to create financial assets.

o We spend a lot of time planning our finances, pondering over

that expensive house we plan to buy and creating wealth

through stocks and gold.

o For all of us, the sole motive of such measures is leave a

rich financial legacy for children / family.

o Therefore, it's important that the wealth is transferred in the

right hands in case of any contingencies

We are earning for whom??

Unclaimed Provident Fund

Unclaimed Matured Insurance

Inoperative Bank Accounts

Physical shares

Pending Transfer of shares

Pending Transmission of shares

Unclaimed dividends

Unclaimed bonuses, split shares

Corporate Deposit

Some example of Unclaimed Investment

5

Share Samadhan

Reason of Unclaimed Investment

Life is Uncertain

Old Age

Ailments Natural

calamities Disability

Untoward

Incidents

Variety of

Investments

Job/Income

Changes

Buy Term Policy from Life Insurance Companies.

Suggestive to take term policy equivalent to approx 12 time of

the income of the earning member.

Road accident death compensation from MACT

Never delay in the renewal of General Insurance

Should not compromise…

Some lesser known facts

In case of sudden demise, the person whose PF was getting deducted

then there is EDLI insurance is also there upto Rs. 600,000/- claims

can be made.

A wrong perception : PF can not be claimed in case employer shut

down the operation .

EDLI ( Employee Deposit Linekd Insurance- The premium is compulsory

paid by employer )

Now accidental cover though booking of tickets through IRCTC is up to

Rs 10 Lakhs

Just imagine these Situation

One Sudden Cardiac

Arrest in every 33

Second

400 daily death in Road

Accident In India

3000 in world

Around 100 daily rail accident

Death in India in 2014 30,000 death in Gujrat

Earthquake in fraction

Of seconds

Documents may be

gutted in fire Theft / Document

misplace

Floods

Is Your Family member

aware about your

Investments?

What to do then…..

Family Need to

Know Nominee

Preserving the

information is

structured

manner

Else Rest this with digital wallet companies

How about someone there

who is like a Trusteeship of

your Investment

This happens when one does not share

Stocks / Mutual

Fund : Rs.

5,35,000 Crores

lying in physical

form

Unclaimed

Corporate

Dividends :

Rs 3,454 Crores

Unclaimed Bank

Account:

Rs 11,302 Crores

Unclaimed

Insurance :

Rs 15,166 Crores

Unclaimed

Provident Fund :

Rs 43,000 Crores

Unclaimed Post

Office accounts :

Rs 1,001 Crores

Value of Unclaimed / Physical Investment in the country is more

than Rs 6,08,923 Crore

Preventive measures

•Keep photocopy of all the investments at Home.

•Password saving

•Family should be aware

How safe is Your Data Online in digital Wallet

No info sharing

till subscriber

alive

Family verification

will be done before

sharing

It is just as Gmail

of your

Investment

Up to 256 SSL

Secured and

encrypted

Do not ask any

document

Wealth Recovery

All hassles for an Investor !!!

• RTA

• MCA

• SEBI

• NCLT

• PF office

• PF trust

• Legal Advisor

• Courts

• Banks

• RBI

• Company

• C.S

Does Anyone want their family to roam around from pillar to post to

claim the investment ? Too many touch point to recover

Investments…..

• Broking Firm

• Financial

Advisor

• Post office

• CA

• Insurance Co.

• IRDA

What we do ?

Matured Insurance Mutual fund

Old shares Postal Savings Bank money

Unclaimed

Provident Fund

We assist in recovery of Lost / Forgotten or scattered

Investment in…..

Builder Flats or

Plots Debtors Recovery UTI

Unclaimed Dividend as well as Shares on which dividend

remained unclaimed for more than 7 years gets transfer to

IEPF (Investor Education & Protection Fund) after 7 years u/s

125 of Companies Act, 2013

Unclaimed corporate deposit along with interest transfer to

IEPF after 7 year

Share application money due for refund gets transfer to IEPF

Matured deposits or debentures also gets transferred to IEPF

If an account is inoperative for more than 10 years, the

amount has to be transferred to Depositors Education and

Awareness Fund (DEAF) operated by the RBI

Why Investor Need to worry

Unclaimed Dividend as well as Shares on which dividend

remained unclaimed for more than 7 years gets transfer to

IEPF (Investor Education & Protection Fund) after 7 years

Unclaimed corporate deposit along with interest transfer to

IEPF after 7 year

Share application money due for refund gets transfer to IEPF

Matured deposits or debentures also gets transferred to IEPF

If an account is inoperative for more than 10 years, the

amount has to be transferred to Depositors Education and

Awareness Fund (DEAF) operated by the RBI

Why Investor Need to worry

Shares & Securities

Instrument Shares & Securities (Dividend / Interest)

Regulator SEBI

Relevant provision Section 124/125 of Companies Act, 2013

When it is considered to be Unclaimed ? When dividend is not encashed within 30 days of

declaration

To whom it gets transferred ? Investor Education & Protection Fund

After how may years its gets transferred to Authority

?

7 years from the date amount becomes unclaimed

What happens after it transferred to Authority ? Refunded to investor, investor awareness etc

Whether it can be claimed back by investor ? Yes

Formalities to claim back

File form IEPF 5 online and submit it with Indemnity,

Adhar Card, Advance Reciept, Letter of Entitlement

etc to Nodal Officer of concerned company

Appellate Authority SEBI

Shares & Securities

If original share certificates are lost, apply for duplicate shares

KYC documents

Indemnity

Affidavit

Surety ( KYC and Income Proof)

Advertisement in Newspaper (If value of shares more than

Rs. 10,000/-)

Copy of Dividend warrant / Any communication from

Company

ISSUE OF DUPLICATE SHARES

•Transfer of physical shares from Transferor to Transferee

•Form SH-4 dully filled, signed and executed validity 30 days

•Pan Card of Transferor mandatory as per Regulation 40(7)

and 61(4) of SEBI (LODR) Regulation, 2015

•KYC documents of Transferee

•Signature verification of Transferor from bank

•Stamp Duty to be paid @ 0.25% of market value of shares

Rs.250 per Lakh

•However as per amendment in Regulation 40 of SEBI (LODR)

Regulation, 2015, Transfer of Physical shares will not be

allowed after 05th

December, 2018

Shares & Securities

TRANSFER OF SHARES

Shares & Securities

•Transmission of share happens when legal heir claims the shares

from deceased shareholder

•Regulated as per Regulation 40 of SEBI(LODR)Regulation, 2015

•KYC documents of Legal heir

•Indemnity, Affidavit etc

•If value of shares is more than Rs. 2 Lakhs (in case of physical

shares) and Rs. 5 Lakhs(in case of demat shares) – Probate of

Will or Succession Certificate is required from Court

•If value of shares is less than Rs. 2 lakhs – Surviving Member’s

Certificate is required from SDM / DM office.

TRANSMISSION OF SHARES

Shares & Securities

26

100 shares of Rs

100 each of Wipro

Today’s worth is

more than 750 cr

Rs 10,000 of CIPLA

Today’s worth is

more than 100 cr

Rs 10,000 of Infosys

Today’s worth is

more than Rs 150 cr

ASTONISHING FACTS

Mutual Funds

Instrument Mutual Funds Mutual Fund

Regulator AMFI

Relevant provision SEBI, vide its circular no.

SEBI/HO/IMD/DF2/CIR/P/2016/37 dated

February 25, 2016

When it is

considered to be

Unclaimed ?

Dividend /redemption amount not encashed

due to Change of Address, Name mismatch

in AMC and Bank records, Cheque expired.

To whom it gets

transferred ?

If amount is claimed within 3 years from due

date(date of redemption), amount remaining

unclaimed and income earned on it till end of

3 years can be claimed.

However if amount is claimed after 3 years from

due date, initial unclaimed amount will be paid

but the income earned on amount remaining

unclaimed after 3 years shall be transferred to

IEPF

After how may

years its gets

transferred to

Authority ?

3 years from the due date of redemption 3 years from the due date of redemption

What happens after

it transferred to

Authority ?

Unclaimed investment amount and income

earned amount within 3 years from due date -

invested in Liquid Fund/Call money/money

market mutual fund.

Income on Unclaimed amount after 3 years from

due date - cannot be claimed, used for investor

awareness

Whether it can be

claimed back by

investor ?

Yes Partial

Formalities to claim File "Unclaimed Dividend / Redemption Claim File "Unclaimed Dividend / Redemption Claim

Mutual Funds

•Concept of Mutual Fund Certificate has been done away with

•Now only Unit Statements are issued for MF holdings

•For Redemption of MF – KYC documents, cancelled cheque,

Unit statement etc required

•For Transmission of MF :-

Upto value of Rs. 2 Lakhs – KYC documents and Indemnity

Between value of Rs. 2-5 Lakhs – KYC, Indemnity and

Surviving Member Certificate

More than value of Rs. 5 lakhs – KYC, Probate of Will /

Succession Certificate

Employees Provident Fund

Instrument Employees Provident Fund

Regulator EPFO

Relevant provision SCWF Rules, 2016 notified in Gazette of

India on 18-03-2016

When it is considered to be Unclaimed ? If account is inoperative for 3 years

To whom it gets transferred ? Senior Citizen Welfare Fund, 2016

After how may years its gets transferred

to Authority ?

7 years from account being inoperative

What happens after it transferred to

Authority ?

Principal Amount and interest thereon

paid to claimant when claimed

Whether it can be claimed back by

investor ?

Yes. But till 25 years from date of transfer

to Authority

Formalities to claim back File Form 19, 10C, 31, 14 (as applicable)

to EPFO

Employees Provident Fund

•If Employee has left the job and has not claimed his PF

amount from company

•He has to file claim online through UAN portal

•Documents required to file claim offline:-

Form 19, Form 10C & Form 10D to be filled in

Salary Slip verified by employer

Joining & Relieving letter by employer

•Documents required to file claim online :–

KYC documents

bank details

authorization from employers

Public Provident Fund

Instrument Public Provident Fund

Regulator PFRDA

Relevant provision SCWF Rules, 2016 notified in Gazette of India on

18-03-2016

When it is considered to be Unclaimed ? If account is inoperative for 3 years

To whom it gets transferred ? Senior Citizen Welfare Fund, 2016

After how may years its gets transferred to

Authority ?

7 years from account being inoperative

What happens after it transferred to Authority ? Principal Amount and interest theron paid to

claimant when claimed

Whether it can be claimed back by investor ? Yes. But till 25 years from date of transfer to

Authority

Formalities to claim back Claim Form along with KYC and Bank details to be

filed to PFRDA

Life Insurance

Instrument Life Insurance

Regulator IRDA

Relevant provision IRDA Circular dated July 25,2017

When it is considered to be Unclaimed ? When policy is matured and not claimed

To whom it gets transferred ? Senior Citizen Welfare Fund, 2016

After how may years its gets transferred

to Authority ?

10 years from the date amount becomes

due

What happens after it transferred to

Authority ?

For refund to investor till 25 years from

the date of transfer to SCWF and for

welfare of senior citizens

Whether it can be claimed back by

investor ?

Yes. But till 25 years from date of transfer

to Authority

Formalities to claim back Claim Form along with KYC and Bank

details to be filed to Insurance company

Life Insurance

•If maturity claim or survival claim is not claimed by policy

holder or legal heir respectively it becomes unclaimed

•Policy lapses if premium is not paid within due date or even

within grace period

•All the benefits of policy are ceases if policy lapses

•Lapsed policy can normally be revived within maturity period

of policy by paying unpaid premium and interest and medical

test, if required

•If minimum premium for 3 years are not paid, policy benefits

are terminated and nothing can be recovered and amount

paid is forfieted

Bank Deposit

Instrument Bank Deposit

Regulator RBI

Relevant provision Section 26A of Banking Regulation Act,

1949

When it is considered to be Unclaimed ? When no claim is made for 10 years from

maturity date or account becoming in

operating in case of CASA

To whom it gets transferred ? Senior Citizen Welfare Fund, 2016

After how may years its gets transferred

to Authority ?

10 years from maturity for Deposits and

10 years from becoming inoperative for

CASA

What happens after it transferred to

Authority ?

For refund to investor till 25 years from

date of transfer to SCWF and for

promotion of depositor's and senior

citizen's interest

Whether it can be claimed back by

investor ?

Yes. But till 25 years from date of transfer

to Authority

Formalities to claim back Claim Form along with KYC to be filed to

Bank

Debtor Recovery

Recovery from Debtor is done through Insolvency &

Bankruptcy Code, 2016

It is a time bound resolution for recovery of Bad Debt (within

6-9 months)

Recovery can be made for Debts arising for last 3 years

IBC (Insolvency & Bankruptcy Code) empowers all classes

of creditors (secured and unsecured lenders, employees,

trade creditors, regulatory authorities)

Provides for immediate suspension of the BOD and

promoters’ powers.

Debtor Recovery Insolvency Resolution

The process may be initiated by either the debtor or the creditors.

National Company Law Tribunal (NCLT) would deal with matters

relating to corporate insolvency

Who are Financial and Operational creditors ?

Financial debt: means debt extended against consideration for the

time value of money, and includes the following example:

Term Loans, Working capital loans etc.,

Receivables etc;

Operational debt: means debt incurred in exchange for the provision

of goods or services (including employment) or debt in respect of the

payment of statutory dues;

• Creditors include secured, unsecured creditors including foreign

creditors and decree holders from the court

Media Coverage

Economic Times _09.03.2016 Purvodaya_08.03.2016

Economic Times Wealth _13.03.2016 Focus News_04.09.2015

Zee Business_25.03.2016

Pratidin_30.06.2015

Share Samadhan – Journey started in 2011

Abhay Chandalia

Abhay is a Chartered Accountant,

Company Secretary and LLB who

co-founded the Whiteinc group

after long 15 years of corporate

association with prominent groups

like K K Birla, L N Mittal.

Vikash Jain

Vikash is a qualified Chartered

Accountant and Company

Secretary co-founded Whiteinc

group after his illustrious service in

CEAT Tyres (RPG group), KPO-

major Evalueserve and Carnation,

owned by former MD of Maruti,

Jagdish Khattar.

20 employee team

8 Graduates /support staff 12 CA/CS/MBA

We would be glad to hear from you….

Regd office

B 35, Lower Ground Floor,

South Ex Part II, New Delhi- 110049 (India)

M: +91 99 71 11 31 56 | P: +91 11 4908 4001 / 02 / 03 (40 lines)

| www.sharesamadhan.com |

39

Contact us M-8800332200

samadhan@sharesamadhan.com