Niveshak Shivir Initiative: Empowering Investors to Reclaim Unclaimed Dividends and Shares

The Niveshak Shivir Initiative is a nationwide initiative that helps investors recover their unclaimed dividends as well as their shares. The initiative is initiated by the Investor Education and Protection Fund Authority (IEPFA) together with SEBI to help investors in smoothing the process of reclaiming assets. It also increases financial literacy, decreases the dependency on intermediaries, and encourages trust in the financial system. The initiative includes On-ground helpdesks, a Digital search tool, and a simplified claims process, which offers physical and digital assistance to the investors.

About:

• Objective: Support investors in recovering unclaimed dividends and shares with ease.

• Launched by: IEPFA (Investor Education and Protection Fund Authority); SEBI (Securities and Exchange Board of India).

Key Features:

• Investor Helpdesks: On-ground support for person-to-person interaction with representatives of the company and RTAs (Registrar and Transfer Agents).

• Digital Search Tool: A portal to monitor share status and to file claims (Form IEPF-5).

• Streamlined Claim Process: Aid to realize the recovering assets in demat as well as physical form.

Significance:

• Minimizes the need for intermediaries in retrieval of assets.

• Increases the transparency in the process of the investor’s claims.

• Localizes financial literacy and trust of the financial ecosystem.

• Speeds up solving the grievances of investors.

Conclusion:

The Niveshak Shivir Initiative is an important move towards making the investors empowered by the simple process of claiming the unclaimed assets making the financial world more transparent and appealing for the investors. With the help of IEPFA and SEBI, the initiative seeks to end the issues that had persisted for decades, i.e unclaimed dividends and shares, thus, creating a better financial ecosystem in India.

Niveshak Shivir UPSC Prelims Practice Question

Q. With reference to the ‘Niveshak Shivir Initiative’, consider the following statements:

1. It aims to assist investors in reclaiming their unclaimed dividends and shares.

2. It is implemented jointly by the Investor Education and Protection Fund Authority (IEPFA) and SEBI.

3. The initiative encourages reliance on financial intermediaries for faster asset recovery.

4. It includes on-ground helpdesks and a digital tool for simplifying the claims process.

Which of the statements given above are correct?

(a) 1, 2 and 4 only

(b) 1, 3 and 4 only
(c) 2 and 3 only
(d) 1, 2, 3 and 4