Where do unclaimed shares go?

Varun is 45 years old and is working in the IT sector. Five years back, Varun purchased 100 shares in ABC company. Sadly, in a grim twist of fate, Varun had an untimely demise. As Varun had no immediate heir, no one claimed his shares. With no one there to use Varun's demat account, it became dormant, and for the next seven years, every time company ABC released dividends, it was reverted back to the company's account. But does the company have a rightful claim on that money? And who should own the shares in that dormant demat account? Section 125 of the Companies Act, 2013, addresses such scenarios. According to the act, shares that remain unclaimed and divide

This article was originally published on April 12, 2023.