International Combustion India is transferring shares with unclaimed dividends for seven consecutive years to the IEPF. Shareholders must claim dividends by September 1, 2026, to retain their shares.
International Combustion India: Transfer of Shares to IEPF Looming
International Combustion (India) Limited will transfer equity shares to the Investor Education and Protection Fund (IEPF) if dividends remain unclaimed for seven consecutive years from FY 2018-19. Reader Takeaway: Act now to claim dividends; failure risks share transfer to IEPF. ## What just happened International Combustion India has initiated a process to transfer shares to the IEPF Authority. This applies to shareholders who have not claimed their dividends for seven consecutive years, starting from FY 2018-19. The transfer is mandated by Section 124(6) of the Companies Act, 2013. ## Why this matters Shareholders with unclaimed dividends risk losing direct ownership of their shares. Once transferred to the IEPF, recovering these shares will involve a more complex administrative process through the Ministry of Corporate Affairs (Form IEPF-5). ## The backstory Section 124(6) of the Companies Act, 2013, mandates the transfer of shares linked to unpaid dividends for seven consecutive years to the IEPF. This is to consolidate unclaimed assets and protect investor interests. ## What changes now Affected shareholders must take action before September 1, 2026. They need to encash their unclaimed dividends or complete the necessary documentation to prevent their shares from being transferred to the IEPF. ## Risks to watch The primary risk is the forced transfer of shares and any subsequent corporate benefits to the IEPF. Physical shareholders will have their original certificates cancelled, while demat shareholders need to ensure their bank details are updated. ## Required Shareholder Actions * **Physical Shareholders:** Must submit forms like ISR-1, ISR-2 (with a cancelled cheque), and others as applicable, to the company or its Registrar and Share Transfer Agent (RTA). * **Demat Shareholders:** Should update their correct bank account details, including MICR and IFSC codes, with their Depository Participant. ## Investor Takeaway Shareholders with unclaimed dividends from FY 2018-19 onwards should immediately verify their status and contact MUFG Intime India Private Limited (the RTA) or the company's registered office to complete the required procedures before the September 1, 2026 deadline.
