Rs. 7 crore cash dividend being transferred over to Investors’ Fund
- ShareSansar, January 6, 2017 on Dividend, Right & Bonus , Featured , Latest , Stock Market
12 companies have sent details of unclaimed cash dividends to the Office of Company Registrar. These uncollected cash dividends will eventually be transferred to an investors’ fund that is going to be established by the Office of Company Registrar.
The Office of Company Registrar has been asking for details of unclaimed dividends beyond 5 years from companies that have floated shares for the general public. Out of the 232 listed companies at NEPSE, 12 companies have sent the details of unclaimed cash dividend and IPO refunds worth Rs. 6.89 crore. This amount also includes the refund IPO applicants have failed to collect from the offering issued beyond the last 5 years.
Thus collected dividend will be used to establish an investors protection fund. The Office of Company Registrar has proposed to save the money into a fixed deposit account and use the interest for organizing various programs for the betterment of the capital market. While investors have requested the Company Registrar to not use the funds, the office has denied of having plans to spending any significant amount. As per the office, only the accrued interest amounts will be used.
The Office of Company Registrar has also made it clear that it will return the dividends any time when requested by the shareholders.