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As much as Rs 857 crore including unclaimed dividend is lying with companies and such amount needs to be transferred to the Investor Education and Protection Fund, Parliament was informed today
The unclaimed and unpaid amounts lying with companies were on account of dividends, matured deposits, debentures, among others.
In 2013-14, Rs 190 crore was lying with various firms; Rs 261.56 crore in 2014-15; Rs 223.42 crore in 2015-16 and about Rs 182 crore in the first seven months of the current fiscal, Minister of State for Corporate Affairs Arjun Ram Meghwal said in a written reply to the Lok Sabha.
These funds are required to be credited to Investor Education and Protection Fund (IEPF), he said.
Payments are required to be made to investors within 30 days of the dividend being declared. Any unpaid or unclaimed amount needs to be transferred to an 'unclaimed dividend account' within the next seven days.
Money lying unclaimed in this account for seven years gets transferred to the Investor Education and Protection Fund.
"Claimants can approach IEPF authority for refund after the funds are transfered to IEPF," Meghwal said
As on March 10, 2016, as many as 263 claimants against 114 companies have made application for refund.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)