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

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

Overview:

The Investor Education and Protection Fund Authority (IEPFA), will organise a State Level Conference on Financial Literacy in Amrit Kaal - Empowering Investors in association with the Department of To

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