{"id":5311,"date":"2020-03-25T15:51:06","date_gmt":"2020-03-25T10:21:06","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=5311"},"modified":"2024-07-17T11:29:39","modified_gmt":"2024-07-17T05:59:39","slug":"investor-education-and-protection-fund-iepf","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/investor-education-and-protection-fund-iepf\/","title":{"rendered":"Investor Education and Protection Fund- IEPF"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Ministry\nof Corporate Affairs (MCA) under sub-section (1) of 205C of the Companies Act,\n1956 has established a fund called as the Investor Education and Protection\nFund (IEPF) through the Companies (Amendment)\nAct, 1999. The prime objective behind this was to educate, aware and secure\nthe interests of investors\nin securities and further encourage governing the securities market and things\nconnected. IEPF is supervised under\nSecurities and Exchange Board of India (Investor\u2019s Protection and Education Fund)\nRegulation, 2009<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/investor-education-and-protection-fund-iepf\/#What_is_the_Reasoning_behind_IEPF\" >What is the Reasoning behind IEPF?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/investor-education-and-protection-fund-iepf\/#How_IEPF_is_being_Managed\" >How IEPF is being Managed?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/investor-education-and-protection-fund-iepf\/#How_IEPF_create_awareness\" >How IEPF create awareness?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/investor-education-and-protection-fund-iepf\/#Various_forms_to_submit_with_authority\" >Various forms to submit with authority:<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_Reasoning_behind_IEPF\"><\/span>What is the Reasoning behind IEPF?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The main apprehension behind IEPF is to account for unclaimed dividends account of a company, share application amount or matured debentures which remains unclaimed for a period of seven long years from the date of declaration of dividend. This unclaimed amount, along with interest accrued, shall be transferred by company to utilize for investor education, awareness activities and further for protection activities. In order to transfer the same, a company need to share certain details with authority. A statement containing the details of the transfer shall be shared by company to authority in a prescribed form. Further after due scrutiny of said funds concerned authority which administer the said fund shall furnish a receipt to the company indicating such transfer.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img decoding=\"async\" width=\"581\" height=\"374\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/03\/image-48.png\" alt=\"reasoning behind IEPF\" class=\"wp-image-5312\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/03\/image-48.png 581w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/03\/image-48-300x193.png 300w\" sizes=\"(max-width: 581px) 100vw, 581px\" \/><\/figure><\/div>\n\n\n<h3 class=\"wp-block-heading\">How do authority so utilization of funds?<\/h3>\n\n\n\n<p><strong><em>Below mentioned shall be part and parcel of IEPF fund if remain unpaid for a time period of 7 years:<\/em><\/strong><\/p>\n\n\n\n<ul>\n<li>Unclaimed funds in dividend account of the company<\/li>\n\n\n\n<li>Funds due and unclaimed for refund received for issuance of\nsecurity<\/li>\n\n\n\n<li>Deposits which have been matured and unclaimed<\/li>\n\n\n\n<li>Debentures which have been matured and remain unclaimed<\/li>\n\n\n\n<li>Any interest accrued and unclaimed on funds as mentioned\nabove<\/li>\n\n\n\n<li>Any sponsorship or donation was given by Government, central\nor state, any company or institution for the purpose of this fund<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_IEPF_is_being_Managed\"><\/span>How IEPF is being Managed?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In order to manage IEPF, Government has constituted a\nCommittee consisting various members such as secretary, various members from Company\/Corporate Affairs,\nsenior members from Reserve Bank of India (RBI) , Security and Exchange Board\nof India (SEBI) and various others experts in this domain. The reasoning behind\nforming a committee is to aspire fund utilization for activities like investor\neducation and protection. Further, it is also the liability of the board to\nensure proper maintenance of all accounts and other relevant details related to\nthe fund.<\/p>\n\n\n\n<p>The objective of IEPF and the said committee is to build a lawful and fair stock market to secure the interest of investors. &nbsp;Further, to empower investors by educating them in order to enable systematic and effective competitive market, ensuring guaranteed and safe investment avenues.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/compelling-investor-pitch-deck\/\">Essentials to Create a Compelling Investor Pitch Deck<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_IEPF_create_awareness\"><\/span>How IEPF create awareness?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>From the time\nof its commemoration, IEPF has conducted numerous awareness programs in order\nto promote protection and investor education. Authority has conducted these\nprograms through institutions engaged with it such as Partner Institutions,\nMinistry of Mass and communication, IT department of Indian Government, CSC\netc. Further authority has conducted various awareness programs focusing on\neducating people about the significance of investment, providing information\nabout mutual funds, debentures, pension funds, equity, investment policies etc.\nwith the help of various associations like ICSI, ICAI, Institute of Corporate\nAffairs, National foundation and many others.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Investor\nAwareness campaign or program:<\/h3>\n\n\n\n<p>The IEPF, in\norder to create awareness among people, conduct various awareness programs by\nengaging partners throughout the country, basically in rural and semi-rural\nareas.<\/p>\n\n\n\n<p>Various\nawareness campaigns are conducted taking in alliance with various Educational\ninstitutions, Professional academies and institutions, various local chambers\nand associations. Yearly many such kinds of campaigns or programs are being\nconducted by association with help of hundreds of associations or participants.\nAuthority also sends the invitation to local government authorities for their\nparticipation to enlighten people about it. Volunteers do a detailed writeup of\nthe campaign and upload complete details of the program over the official\nwebsite of IEPF to create awareness among people. <\/p>\n\n\n\n<p>More than\n36,000 Investor Awareness Programmes have been organized by authority\nthroughout the country in various rural and urban areas. This was done in order\nto create awareness among people with the help of various Professional\nInstitutes organized under the Ministry of Corporate Affairs (MCA) and Common\nService Centers (CSCs) and others. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">The main responsibility of the authority:<\/h3>\n\n\n\n<p>As per the\nprovisioning of the amendment act, the authority has been given the\nresponsibility to administer and regulate the funds assigned for Investor\nEducation and its Protection.<\/p>\n\n\n\n<ul>\n<li>Chairperson\nis the supreme authority of the organization, who supervise and administer all\npowers vested in the authority;<\/li>\n\n\n\n<li>Chief\nExecutive Officer (CEO) works under supervision and directions of Chairperson\nand has been allocated with powers to administer affairs of the general\nmanagement of the authority;<\/li>\n\n\n\n<li>As\nper the legal provisions Permanent Committee(s) can be formed to oversee the\naffairs of authority;<\/li>\n\n\n\n<li>Every\ncommittee shall contain two (2) members, which shall be headed by an ex-officio\nmember. One member to be Chief Executive Officer (CEO) and other be Functional\nhead, who shall also be the secretary of the concerned committee;<\/li>\n\n\n\n<li>In\norder to address any specific issue committee may appoint experts with special\nknowledge and expertise in the same domain;<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Various_forms_to_submit_with_authority\"><\/span>Various forms to submit with authority:<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul>\n<li>IEPF Form 1- Fund statement that is credited to authority<\/li>\n\n\n\n<li>IEPF Form 2- Fund Statement of unclaimed and unpaid amounts paid to authority<\/li>\n\n\n\n<li>IEPF Form 3- Fund Statement of shares &amp; unclaimed\/unpaid dividend that is not transferred to authority<\/li>\n\n\n\n<li>IEPF Form 4- Shares statement that is transferred to authority<\/li>\n\n\n\n<li>IEPF Form 5- Application in order to claim unpaid amounts &amp; shares out of authority<\/li>\n\n\n\n<li>IEPF Form 6- Fund statement of the unclaimed amount transferred to the authority <\/li>\n<\/ul>\n\n\n\n<p>The mentioned forms can be downloaded from the official website of the authority.<\/p>\n\n\n\n<p>Recently the authority has simplified the provisions of the act dated 14.08.2019 by amending the Investor Education &amp; Protection Fund (Accounting, Audit, Transfer and Refund) Rules 2016 vide GSR No.571 (E). By this authority has simplified the procedure for claiming refund with the authority, i.e. the Investor Education &amp; Protection Fund Authority. Via amendment certain provisions have been changed to simplify the refund procedure inter-alia providing transparent and faceless digitalization procedure of claims by the authority. The further amendment has also simplified and systemize the procedure and has made it system-driven and time-bound with procedural enforcement.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/filing-of-financial-statement-with-registrar\/\">Filing of Financial Statement with Registrar\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Ministry of Corporate Affairs (MCA) under sub-section (1) of 205C of the Companies Act, 1956 has established a fund called as the Investor Education and Protection Fund (IEPF) through the Companies (Amendment) Act, 1999. The prime objective behind this was to educate, aware and secure the interests of investors in securities and further encourage governing [&hellip;]<\/p>\n","protected":false},"author":21,"featured_media":5329,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[128],"tags":[421],"acf":{"service_id":"230"},"authorName":"Navdeep Kaur","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/03\/IMG_20190122_114933.jpg","authorDescription":"Navdeep is working as legal counsel in Enterslice group companies having more than 4 years of experience. She has expertise in legal, corporate and regulatory matters.","postViews":8353,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/5311"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/21"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=5311"}],"version-history":[{"count":25,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/5311\/revisions"}],"predecessor-version":[{"id":65419,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/5311\/revisions\/65419"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/5329"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=5311"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=5311"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=5311"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}