Focus: GS II: Polity and Governance
Why in News?
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 Tourism in Aizawl.
About Investor Education and Protection Fund Authority:
- The Investor Education and Protection Fund Authority was established in 2016 under the Companies Act of 2013, and it operates under the Ministry of Corporate Affairs.
- The main responsibility of the Authority is to administer the Investor Education Protection Fund (IEPF), make refunds of shares, unclaimed dividends, matured deposits/debentures, and promote awareness among investors.
Investor Education Protection Fund (IEPF)
- The Investor Education Protection Fund (IEPF) was established under Section 205C of the Companies Act, 1956, by way of the Companies (Amendment) Act, 1999.
- The fund is created to safeguard the interests of investors and promote awareness among them.
- 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
- The Fund also receives grants and donations from 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 is also credited to the Fund.