Investor Education and Protection Fund Authority (IEPFA)

About Investor Education and Protection Fund: 

• It has been established under Section 205C of the Companies Act, 1956 by way of the Companies (Amendment) Act, 1999.
• The following amounts that remained unpaid and unclaimed for a period of seven years from the date they became due for payment are credited to the Fund:
  • Amounts in the unpaid dividend accounts of the companies
  • The application money received by companies for allotment of any securities and due for refund
  • Matured deposits with companies
  • Matured debentures with companies
  • Grants and donations are given to the fund by the Central Government, State Governments, companies or any other institutions for the purposes of the Fund
  • The interest or other income received out of the investments made from the fund
• This fund is managed by the Investor Education Protection Fund Authority (IEPFA)
  • IEPFA was established in 2016 under the Companies Act, of 2013.
• Nodal Ministry: Ministry of Corporate Affairs

Q1: What is a debenture?

It is a medium- to long-term debt security issued by a company as a means of borrowing money at a fixed interest rate. Unlike most investment-grade corporate bonds, it is not secured by collateral.

Source: Banking law amendments propose four nominees to an account