Shareholders of companies that declare handsome dividends seem to care less for their share of profits. Take for instance, Infosys, the second-largest Indian IT services exporter, which has been consistent in paying huge dividends over the past few years. But the money somehow does not reach some shareholders, resulting in the same being deposited in an investor protection account.
Read: Infosys share buyback likely; a look at its bonus history, capital structure
In three financial years (2013-14, 2014-15 and 2015-16), Infosys transferred about Rs 65 lakh to the Investor Education and Education Fund (IEPF). The transfer in 2015-16 was a phenomenal Rs 40.98 lakh, almost three to four times in comparison to previous years, according to the company's FY2016 annual report.
Not only that, the company transferred Rs 17.76 lakh in July 2016 followed by Rs 28.87 lakh in November. The amounts pertain to dividend declared in FY2010 (interim and final). Similarly, unclaimed dividend of Rs 28.87 lakh and Rs 21.39 lakh is due for transfer to the IEPF in November 2017 and July 2018, respectively.
The company has a track record of huge dividend payments — Rs 25 per share in FY2010; Rs 60 in FY2011; Rs 47 in FY2012; Rs 42 in FY2013; Rs 63 in FY2014 and Rs 59.50 in FY2015 (the amounts include both interim and final dividend).
Section 124 of the Companies Act, 2013 mandates that dividend lying unclaimed for seven years should be transferred to the IEPF.
TCS
India's largest IT services exporter Tata Consultancy Services (TCS) disclosed in its FY2016 annual report that unclaimed dividends of Rs 21.11 crore were lying in its accounts as of March 31, 2016, up from Rs 19.77 crore as of March 31, 2015.
Wipro
In 2015-16, the Bengaluru-based, Azim Premji-led company transferred Rs 50.94 lakh in unclaimed dividend to the IEPF pertaining to the financial year 2007-08.
Infosys share closed at Rs 1,009 apiece on Thursday on the BSE, Wipro ended at 485 and TCS at Rs 2,481. Stock markets in India are closed on Friday on account of Maha Shivratri and will open next Monday.
On Thursday, the BSE Information Technology index outperformed the Sensex, gaining 1.70 percent while the Sensex closed 0.10 percent higher at 28,893.
