Kotak Mahindra Bank has issued a formal notice to shareholders regarding the transfer of unclaimed or unencashed dividends and associated eligible equity shares to the Investor Education and Protection Fund (IEPF). This action pertains to dividends from the Financial Year 2018-19 that remain unpaid for seven consecutive years. Shareholders have until August 11, 2026, to claim their dues before the scheduled transfer on August 21, 2026.
Shareholder Action Required
Kotak Mahindra Bank has identified a list of shareholders who have not claimed their dividends for the Financial Year 2018-19. Under the current legal framework, if these dividends remain unencashed for a continuous period of seven years, both the dividend amount and the underlying equity shares are mandated to be transferred to the government-established IEPF Authority.
Important Deadlines and Procedures
To prevent the transfer of their shares and funds, affected shareholders are advised to take immediate action. The bank has set August 11, 2026, as the final date for shareholders to submit their claims for the unencashed dividend amounts. Submissions should be directed to the bank’s registrar, KFin Technologies Limited. Failure to act by this deadline will result in the automatic transfer of these assets to the IEPF by August 21, 2026.
Updating KYC and Bank Details
In line with recent market directives, the bank is urging all security holders in physical form to ensure their KYC details are up to date. This includes PAN, nomination preferences, mobile numbers, and bank account information. Shareholders should use Form ISR-1 to update their records. Maintaining current bank account information is essential for receiving future dividend payments electronically and ensures seamless communication regarding share holdings.
Recovery Process
Shareholders who miss the aforementioned deadline are not permanently barred from recovering their assets. Individuals may still claim their shares and dividend amounts directly from the IEPF Authority by filing a Form IEPF-5 online. Once the claim is verified, the authority will initiate the refund of the unclaimed dividends and facilitate the release of the equity shares back to the claimant’s account.
Source: BSE
