Escorts Kubota Issues Notice for Transfer of Unclaimed Shares to IEPF

Escorts Kubota Limited has issued a public notice regarding the impending transfer of equity shares and unclaimed dividends to the Investor Education and Protection Fund (IEPF) Authority. This action is in compliance with the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016, as amended, and aims to address dividends that have remained unpaid or unclaimed for seven consecutive years or more. The company has published advertisements in leading newspapers, urging concerned shareholders to take necessary steps to claim their outstanding dues.

Action Details

Escorts Kubota Limited, a prominent player in the manufacturing sector, has formally announced its adherence to the Investor Education and Protection Fund (IEPF) Authority (Accounting, Audit, Transfer and Refund) Rules, 2016. This regulatory mandate requires companies to transfer shares and any associated dividends that have remained unclaimed by shareholders for a continuous period of seven years or more to the IEPF Account. The company has taken proactive steps by publishing a comprehensive advertisement in widely circulated newspapers, dated July 09, 2025. These publications serve as a final intimation to shareholders whose dividends have not been claimed for the stipulated period, urging them to initiate the necessary procedures to claim their entitlements. The notice underscores the company's commitment to regulatory compliance and transparency in managing shareholder funds.

Process and Timeline

The process initiated by Escorts Kubota involves a public notification to all affected shareholders. The advertisements, published on July 09, 2025, explicitly request these shareholders to take appropriate action to claim their unpaid or unclaimed dividends. This notice is a critical step before the company proceeds with the transfer of both the unclaimed dividends and the corresponding equity shares to the IEPF Account. The rules stipulate that if the dividends remain unclaimed for seven consecutive years, the shares linked to those dividends also become liable for transfer to the IEPF. While the notice itself does not specify a direct deadline for shareholders to claim their dividends, the publication of the advertisement signifies the commencement of the final phase before the transfer. Shareholders are advised to act promptly upon seeing such notices to avoid the transfer of their assets to the government-managed fund.

Shareholder Impact

The primary impact of this notice is on shareholders who have not claimed their dividends for seven or more consecutive years. If these shareholders fail to take appropriate action to claim their dividends following the public notice, their equity shares, along with the unclaimed dividend amounts, will be transferred to the IEPF Account. Once transferred to the IEPF, the shares and dividends are held by the IEPF Authority. While the rules do provide a mechanism for shareholders to reclaim their shares and dividends from the IEPF Authority at a later stage, the process can be more involved and time-consuming compared to claiming them directly from the company. Therefore, it is crucial for shareholders to review their records and respond to such notices to prevent the transfer of their valuable assets. The company's communication aims to provide a final opportunity for shareholders to secure their rightful entitlements before the mandatory transfer occurs.

Regulatory Compliance

Escorts Kubota Limited's action is a direct fulfillment of its obligations under the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016, as amended. These rules were established to ensure that unclaimed dividends and shares are not perpetually held by companies but are instead transferred to a central fund managed by the government, which can then be utilized for investor education and protection activities. Furthermore, the company has confirmed that this publication is in accordance with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, which mandate listed entities to disclose such significant corporate actions to the stock exchanges and the public. By issuing this notice and publishing the advertisements, Escorts Kubota demonstrates its commitment to adhering to the regulatory framework governing corporate governance and investor protection in India.