What is Investor Education and Protection Fund Authority (IEPFA)?

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 a Debenture?

Debentures are unsecured bonds or debt instruments released by a government authority or company to finance its long-term, capital-intensive projects.

Source: Conference on Financial Literacy in Amrit Kaal – Empowering Investors to be held at Vanapa Hall, Aizawl, Mizoram