Trapped in bureaucracy: The ordeal of recovering unclaimed shares in India
For Ashita Awasthy, the journey to reclaim her father's long-forgotten shares has been a gruelling odyssey. Bought in the 1990s and discovered in 2015, the shares—some jointly held with her and others in her mother's name—had languished for decades, a silent testament to the bureaucratic labyrinth that plagues India's Investor Education and Protection Fund (IEPF), often ensnaring unsuspecting investors.
“Document preparation aside, the way companies and IEPF take all the time in the world with their archaic process and speed post communication is disturbing. My 83-year-old mother had to sign on hundreds of physical documents," says Ghaziabad-based Awasthy, who is still waiting for the transfer of a few remaining dividends, with only a couple of shares left to be transmitted.
Awasthy's experience is far from unique. Countless Indians find themselves entangled in the complex web of unclaimed shares, a financial treasure trove often overlooked or forgotten. The process of reclaiming these assets can be a time-consuming and frustrating ordeal, marked by excessive paperwork, lengthy delays, and a seemingly indifferent bureaucracy.
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The IEPFA (Investor Education and Protection Fund Authority), the government body tasked with managing unclaimed shares, has faced mounting criticism for its sluggish procedures and lack of transparency. While recent reforms have aimed to streamline the process, many investors continue to encounter significant hurdles.
An IEPF official, speaking anonymously, told Mint that the much-anticipated integrated portal, originally scheduled for a February 2024 launch to digitize the claims process, has now been delayed by six
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