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

 

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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.

Source: Investor Education and Protection Fund Authority (IEPFA) and Common Service Centre (CSC) launches “Niveshak Sarathi” Vans for Delhi-NCR