Payment of Dividend
The dividend is paid under two modes viz.- (a) Through National Electronic Clearing Service (NECS) (b) Through Dividend Warrants / Dividend Mandate
Reserve Bank of India’s NECS facility provides shareholders an option to receive dividend directly in their bank account(s) rather than receiving the same through physical warrant(s). Under this option, the bank account of the shareholder is directly credited and the confirmation thereof is sent by the Company after the transaction is effected. The concerned bank branch credits shareholder’s account and indicates the credit entry as “NECS” in his/ her passbook/ statement of account. If any shareholder maintains more than one bank account, payment can be received at any one of his/ her accounts as per the preference of the shareholder. The shareholder does not have to open a new bank account for the purpose.
To avail this facility, the shareholders holding shares in physical form are requested to download the NECS Mandate form given below and send the same to the Company’s RTA.
Shareholders holding shares in dematerialized form, have to lodge their request to the concerned DP, in the format prescribed by the DP. The shareholder should approach the DP and submit a request letter to the DP along with a copy of the cancelled cheque of his/her Bank Account. The DP in turn will record the 9 digit MICR number along with the account particulars of the shareholder. This action would facilitate future payment of dividend, etc. to be received in electronic mode.
Opting out of NECS facility
Shareholders have a right to opt out from this mode of payment by giving advance intimation at least four weeks, prior to payment of dividend, either to the Company’s RTA or to the concerned DP, as the case may be.
Dividend Mandate facility
Shareholders holding shares in physical forms are requested to apply to the Company/RTA for registration of Dividend Mandate with full particulars of Account no. and Bank address together with cancelled cheque of relevant Bank account.
Procedure for revalidation of dividend warrant(s)
Shareholders who have not encashed their dividend warrant(s) within the validity period may send a request of revalidation to the Company/RTA together with such outdated dividend warrant(s). The Company/RTA after due verification of the records, will arrange to issue a demand draft in lieu of the uncashed dividend warrant(s).
Procedure for claiming unpaid dividend
The shareholders who want to claim the unpaid dividend will have to submit a duly signed request letter quoting the necessary details of their shareholding along with the format of undertaking to the Company Secretary of the Company / RTA. On receipt of the requisite documents the Company/RTA would process the request for issuance of demand draft in lieu of unpaid dividend warrant(s).
The proceeds of unclaimed / unpaid dividend warrants are required to be transferred to Investor Education and Protection Fund (IEPF) established by the Central Government after expiry of 7 years from the date of transferring to the unpaid dividend account of the Company in accordance with the provisions of Section 205A/205C of the Companies Act, 1956. After the transfer of the proceeds No claim will be entertained.