Unclaimed dividend amounts held by mutual funds rose 15.7 per cent year-on-year to Rs 2,689 crore at the end of FY26, according to the Securities and Exchange Board of India’s (Sebi) Annual Report 2025-26. The increase came despite a marginal decline in unclaimed redemption proceeds during the year.
The unclaimed dividend amount stood at Rs 2,324 crore at the end of FY25 and increased by Rs 365 crore over the following year. Meanwhile, unclaimed redemption proceeds declined 0.5 per cent to Rs 1,122 crore from Rs 1,128 crore during the same period.
Together, unclaimed dividends and redemption proceeds with mutual funds amounted to Rs 3,811 crore as of March 31, 2026, compared with Rs 3,452 crore a year earlier. The overall increase was primarily driven by the rise in unclaimed dividend amounts, which more than offset the marginal decline in redemption proceeds.
The data comes as the regulator continues to focus on reducing unclaimed financial assets and simplifying the process through which investors and nominees can access their holdings. Sebi said it has enabled integration of demat and mutual fund holdings with DigiLocker, allowing investors to access financial information at a single location.
Sebi Steps Up Investor Facilitationa
Sebi has also introduced a centralised mechanism for reporting the death of an investor. Under the system, a nominee can report the death to a KYC Registration Agency once, after which the information can be updated across financial intermediaries, reducing the need for multiple submissions.
Separately, Sebi and the Investor Education and Protection Fund Authority (IEPFA) have launched the Niveshak Shivir initiative to create awareness about unclaimed shares and dividends and help investors recover their assets. The initiative provides assistance with Form IEPF-5, dematerialisation of securities, and updating KYC and nomination details.
Six Niveshak Shivirs were organised during FY26 in Pune, Hyderabad, Amritsar, Jaipur, Bengaluru and Bhubaneswar. Dedicated Seva Kendras were also made operational across six states to provide investors with assistance in reclaiming unclaimed financial assets.
The Rs 2,689 crore figure reported by Sebi relates specifically to unclaimed dividend amounts held by mutual funds. It should not be interpreted as the total value of unclaimed dividends lying with listed companies.