In case of non-receipt of dividend, what action a shareholder should take?

He should first check his own records thoroughly. Thereafter he should write to our R & ST Agent, M/s. Karvy Computershare Private Limited furnishing the particulars of the dividend not received and should necessarily quote his folio number. In case he holds shares in electronic mode then the DP ID and client ID should be mentioned. After checking the records with the banker to the issue, Hero Honda Motors Limited will arrange to issue him a Banker's Cheque/Demand draft for the unpaid amount.

What is the procedure for obtaining a duplicate dividend warrant?

If the validity period of the lost dividend warrant has not yet expired, one will have to wait till the expiry date since no duplicate can be issued during the validity of the original warrant. However after the expiry of the validity period, if the dividend warrant is still shown as unpaid as per the Bank Statement, a Banker's Cheque/Demand draft shall be issued to the shareholder.

Why do the shareholders have to wait till the expiry of the validity period of the original warrant? Why can't Hero Honda Motors Limited issue stop payment instructions to the bank on the original warrant and issue a duplicate immediately?

Since the dividend warrants are payable at par at more than 80 centres all over the country, it is not practically possible for the banks to issue stop payment instructions and it is therefore necessary for Hero Honda Motors Limited to wait till the validity of the original warrant expires.

Can one claim the old dividends relating to past years that have not been received by him?

As per the present law, the company retains all unpaid/unclaimed dividends for the past seven years. If one has not received any of these dividends, he should write to our R & ST Agent, M/s. Karvy Computershare Private Limited providing relevant particulars such as folio number/DP ID & Client ID, concerned dividend, year etc., and Hero Honda Motors Limited shall arrange to pay the dividend remaining unpaid in the records.

What happens to dividend, which remains unpaid/unclaimed for more than 7 years?

In case of dividend amount remaining unpaid/unclaimed for a period more than 7 years than the said amount is necessarily transferred to the "Investor Education and Protection Fund" (IEPF), constituted by the Central Government and members would not be able to claim any amount of dividend so transferred to the IEPF.

P.S. However in respect of the unclaimed dividend(s) declared for the period(s) upto 1994, the same have already been transferred by Hero Honda Motors Limited to the General Revenue Account of the Central Government. Member(s) may claim the same by writing to the Registrar of Companies, NCT of Delhi & Haryana, Paryavaran Bhawan, CGO Complex, Lodhi Road, New Delhi, 110 003 by quoting the Company's Identification No. L35911DL1984PLC017354

In order to protect against fraudulent encashment, how can one incorporate the details of his bank account on his dividend warrant. What is the procedure that he should follow?

If one is holding shares in physical form, he should duly fill the request updation form for bank mandate and sent the same to our R & ST Agent, M/s. Karvy Computershare Private Limited. The Company will take on record such request complete in all respect and incorporate the same on future dividend warrants. However, if one is holding the shares in electronic mode then such details needs to be furnished to the respective Depository Participant with whom one holds the demat account and not to Hero Honda Motors Limited or our R & ST Agent.

Can one authorise his banker or any other person to receive dividends on his behalf?

Yes. One can do so by furnishing the name and address of the authorised person/banker. Such request should contain all the relevant details such as folio number, number of shares, specimen signatures recorded with Hero Honda Motors Limited. The Company will take on record such request complete in all respect and dispatch the dividend warrant to the mandatee as per the instructions.

Please note that this procedure is applicable only if you are holding shares in physical form.

Why can't Hero Honda Motors Limited take on record the bank details in case of dematted shares?

As per the Depository Regulations, the company is obliged to pay dividend as per the details of demat shareholders furnished by the concerned Depository Participant. However, if in case one needs to record his mandate then such details needs to be furnished to the respective Depository Participant with whom one holds the demat account and not to Hero Honda Motors Limited or its R & ST Agent, as we are not authorised to make or incorporate any change in records received from the Depository.

Bank Mandate for dividend

If you wish that your dividend amount should be deposited by Hero Honda Motors Limited directly into your Bank Account with any of the Banks in India, you may avail the option of issuing a Bank Mandate to Hero Honda Motors Limited.

To enable us to act on your instruction, kindly download the following form, fill it up and mail it to our  R & ST Agent, M/s. Karvy Computershare Private Limited. On receipt of your mandate, we shall take it on record, issue a letter confirming registration of your Bank Mandate and shall arrange to forward your dividend warrant directly to your Bank for crediting the dividend amount into your Bank Account under advice to you.

Bank Mandate Form

You may withdraw or change your Bank Mandate as and when you desire, subject to receipt of intimation of instruction at least one month before remittance of dividend.

This facility facilitates prompt credit of your dividend amount into your Bank Account without your having to visit the Bank.

Bank details on Dividend Warrants

If you have not opted for the ECS facility or in case the location of the Bank/Branch indicated by you is not among the centres covered by ECS facility and desire to incorporate your bank details on the dividend warrant, kindly furnish the particulars in the following form.

Form for Bank Details on dividend warrants

You may use the same form for notifying any change in the particulars of your Bank Account. Kindly ensure that any such change should be notified at least one month before remittance of dividend through ECS. We wish to assure you that our dividend warrants incorporating your name and particulars of your Bank Account, will be mailed directly to your address.

Kindly be rest assured that the information provided by you will be kept confidential and will be used only for the purpose of remittance of your dividend.

In order to provide protection against fraudulent encashment of dividend warrants, Shareholders are requested to provide, if not provided earlier, their Bank Account numbers, names and addresses of the bank branches, quoting their Folio numbers, to our  R & ST Agent, M/s. Karvy Computershare Private Limited to enable us to incorporate the same on their dividend warrants.

What is Electronic Clearing Service (ECS)?

Under this system, one can receive his dividend electronically by way of direct credit to his bank account. With this service the problems such as loss/fraudulent interception of dividend warrants during postal transit is avoided. This also expedites payment through credit to the account of the investor as compared to the payment through physical dividend warrant.

Form for Clearing Service (ECS)

Is the ECS facility available across the country?

No. The Reserve Bank of India has introduced ECS facility at select cities only.

Bank details for Electronic Shareholdings

While opening Accounts with Depository Participants (DPs), you may have given your Bank Account details, which will be used by Hero Honda Motors Limited for printing on dividend warrants or remittance of dividend. This ensures that the dividend warrants, even if lost or stolen, cannot be used for any purpose other than for depositing the money in the Account specified on the dividend warrants and ensures safety for investors. However, if you wish to receive dividend in an Account other than the one specified while opening the Depository Account, you may change / correct Bank Account details with your DP. Shareholders are requested to furnish complete details of their Bank Accounts including MICR codes of their Bank to their DPs.

Hero Honda Motors Limited under the guidance and co-operation of National Securities Depository Limited (NSDL) arranged direct deposit of dividend amounts to the Bank Accounts of shareholders holding shares in electronic form for the years 1998-1999 and 1999-2001. The dividend amounts were remitted to the Bank Accounts, as per the particulars given by the shareholders to their Depository Participants (DPs). Immediately on remittance of dividend amounts under this scheme, Hero Honda Motors Limited advised the shareholders concerned furnishing particulars of remittance of dividend amounts to their Bank Accounts.