Unclaimed dividend money held by mutual funds climbed sharply during 2025-26, even as the amount of redemption proceeds awaiting collection edged lower, according to the Securities and Exchange Board of India’s (SEBI) Annual Report 2025-26. Data in the regulator’s latest annual report showed that unclaimed mutual fund dividends rose 15.7 per cent to Rs 2,689 crore as of March 31, 2026. The amount was Rs 2,324 crore at the end of the previous financial year, representing an increase of Rs 365 crore.

At the same time, unclaimed redemption proceeds moved in the opposite direction. The amount fell marginally by 0.5 per cent to Rs 1,122 crore in 2025-26, compared with Rs 1,128 crore in 2024-25.

“Meanwhile, the unclaimed dividend amount registered an increase of 15.7 per cent, reaching Rs 2,689 crore in 2025-26 from Rs 2,324 crore in 2024-25,” SEBI said in the report.

When unclaimed dividends and redemption proceeds are combined, the total amount pending with mutual funds stood at Rs 3,811 crore at the end of March 2026.

This was higher than the Rs 3,452 crore recorded a year earlier. The increase of Rs 359 crore was driven primarily by the rise in unclaimed dividend balances, which more than offset the small decline in redemption amounts.

The data highlights the importance of investors keeping their bank, KYC and nomination details updated so that payments and investments can be transferred or claimed without unnecessary delays.

SEBI Expands Digital Access To Investment Holdings

The rise in unclaimed assets comes against the backdrop of several initiatives by SEBI to make it simpler for investors and nominees to locate and access financial holdings.

As part of these efforts, the regulator has enabled integration of investment holdings with DigiLocker. This allows investors to access information related to their demat accounts and mutual fund investments through a centralised digital location.

SEBI has also introduced a mechanism aimed at simplifying the process of reporting an investor’s death. Under the system, a nominee can report the death to a KYC Registration Agency once, after which the information can be disseminated to other financial intermediaries.

Niveshak Shivir Helps Investors Recover Unclaimed Assets

SEBI and the Investor Education and Protection Fund Authority (IEPFA) have separately launched the “Niveshak Shivir” programme to improve awareness about unclaimed shares and dividends and help investors recover their financial assets.

The initiative assists investors with several processes, including filing Form IEPF-5, dematerialising securities and updating KYC and nomination information.

During 2025-26, six Niveshak Shivirs were conducted across Pune, Hyderabad, Amritsar, Jaipur, Bengaluru and Bhubaneswar. Dedicated seva kendras were also made operational in six states to provide investors with assistance.

These initiatives are intended to address one of the key challenges associated with unclaimed financial assets: helping investors or their legal nominees identify investments and complete the documentation required to recover them.

Rs 2,689 Crore Figure Applies To Mutual Funds

It is important to note that the Rs 2,689 crore figure mentioned in the SEBI report specifically refers to unclaimed dividend amounts held by mutual funds.

The figure should not be interpreted as the total value of unclaimed dividends belonging to listed companies. Listed-company dividends and mutual fund distributions are covered under different frameworks and mechanisms for recovery.

The latest figures therefore underline the growing value of dividends within mutual funds that remains unclaimed, while SEBI’s digital and investor-awareness initiatives seek to make it easier for investors and nominees to trace and recover such financial assets.

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