Unclaimed shares and dividends are something which every investor wants to prevent. It causes them to not receive any return on the investment made by them just because they forget to claim their dividends on time. It becomes a liability for both the company and the investor in a way that the company is liable to the investor to deliver profits in the form of dividends on time and the investor is liable to claim all that dividend on time. If not, then it will cause the company to maintain the records for all the pending dividend and investor will suffer from a loss he’s not even aware about at that point.

To prevent that, IEPF, The Investor Education & Protection Fund takes all these unclaimed dividends and return on investments which are yet to be claimed by their rightful owners and stores them all together so that until the time the investor attempts to reclaim and redeem all of his shares along with his dividends, a proper protection is provided to the funds. Once it has been confirmed and verified by the company that the following person is the rightful owner, then the company will use this fund to recover the investor with their unclaimed shares and dividends. IEPF is a fund made by the government to prevent the loss of all such investors who have unclaimed dividend left.

This is mostly caused because of lack of information or even forgetfulness, and to prevent such situations from rising at all, IEPF also spreads awareness and education on the matter to the fellow investors to make sure that they don’t end up in this mess and also provides them with measures to help them get through the whole procedure.