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The decision is expected to streamline processes across listed companies, cut paperwork, and improve investor convenience - especially in cases involving forgotten dividends, matured debentures, bonds and other securities.

Under the revised framework, companies will transfer unclaimed amounts to the IEPF just once after seven years from the date the amount becomes payable. SEBI has now done away with this repetitive mechanism. The regulator said the change was aimed at making the system “simpler, more efficient and investor-friendly”. Earlier, unclaimed amounts had to be moved to the IEPF repeatedly, depending on the instrument and its payment schedule. This resulted in multiple transfers over time, pushing up compliance costs and adding to the administrative load for companies.

One of the biggest takeaways from SEBI’s decision is that investors now get more time to approach the company directly. With a single transfer after seven years, investors can continue to claim their dues from the issuer during this entire period, instead of being forced into the IEPF claim process prematurely. This is particularly helpful for retail investors, senior citizens and legal heirs who may not be aware of pending investments immediately. SEBI believes this change will reduce delays and complications in genuine claims.

For issuers, the revised rule means fewer transactions, fewer reconciliations and clearer record-keeping. Companies will no longer have to track and transfer unclaimed amounts repeatedly across multiple due dates. Market participants say this will improve compliance efficiency without diluting investor protection. Unclaimed dividends and matured securities run into thousands of crores across Indian capital markets.