Recently, in a step towards financial literacy, Investor Education and Protection Fund Authority (IEPFA) launched two Investor Awareness Vans titled “Niveshak Sarathi" as part of the Azadi ka Amrit Mahotsav celebrations.
About Investor Education and Protection Fund Authority
- It was established in 2016 under the Companies Act, of 2013.
- The Authority is entrusted with
- The responsibility of administration of the Investor Education Protection Fund (IEPF).
- Make refunds of shares, unclaimed dividends, matured deposits/debentures etc. to investors and promote awareness among investors.
- Nodal Ministry: Ministry of Corporate Affairs
Key facts about the Investor Education Protection Fund (IEPF)
- 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
Q1) What is debenture?
A debenture is a type of long-term debt instrument issued by a company or government to raise funds. When you purchase a debenture, you are essentially lending money to the issuer in exchange for regular interest payments and the eventual repayment of the principal amount at the maturity date.