Q 1. What is Investor Education and Protection Fund (IEPF)?
Investor Education and Protection Fund (IEPF) is a fund that is created by the Central Government under section 125 of the Companies Act, 2013 for the promotion of investors’ awareness and protection of the interests of investors.
Q 2. What is Investor Education and Protection Fund (IEPF) Authority?
The Authority is entrusted with the responsibility of:
Let’s discuss the provision of companies Act, 2013
(1) The Central Government shall establish a Fund to be called the Investor Education and Protection Fund (herein referred to as the Fund).
Q 3. What amount to be credited to the IEPF?
Following shall be credited to the Fund:-
Section 38 : Punishment for personation of acquisition etc. of securities
(4) The Amount received through disgorgement or disposal of securities under Section 38(3) shall be credited to IEPF.
Exception: The amount referred to in clauses (h) to (j) shall not be form part of the Fund unless such amount has remained unclaimed and unpaid for a period of 7years from the date it became due for payment.
Q 4. For what purpose the fund is utilised?
The Fund shall be utilised for:
Explanation: The disgorged amount refers to the amount received through disgorgement or disposal of securities.
However, the person whose amounts referred to in clauses (a) to (d) of section 205C (2) transferred to IEPF, after the expiry of the period of 7 years as per provisions of the Companies Act, 1956,
Q 5. How can any person claim fund?
Any person claiming to be entitled to the amount may apply to the IEPF authority for the payment of the money claimed (in form IEPF-5 alongwith requisite documents)
Procedure to claim Refund
Administration of Fund:
(5) The CG shall constitute an authority for the administration of the Fund, by notification, consisting of a chairperson and such other upto 7 members and a chief executive officer, as the Central Government may appoint.
(6) The manner of administration of the Fund, appointment of chairperson, members and chief executive officer, holding of meetings of the authority shall be in accordance with such rules as may be prescribed.
(7) The CG may provide to the authority such offices, officers, employees and other resources in accordance with such rules as may be prescribed.
(8) The authority shall administer the Fund and maintain separate accounts and other relevant records in relation to the Fund in such form as may be prescribed after consultation with the Comptroller and Auditor-General of India.
(9) It shall be competent for the authority constituted under sub-section (5) to spend money out of the Fund for carrying out the objects specified in sub-section (3).
(10) The accounts of the Fund shall be audited by the Comptroller and Auditor– General of India at such intervals as may be specified by him and such audited accounts together with the audit report thereon shall be forwarded annually by the authority to the Central Government.
(11) The authority shall prepare in such form and at such time for each financial year as may be prescribed its annual report giving a full account of its activities during the financial year and forward a copy thereof to the Central Government and the Central Government shall cause the annual report and the audit report is given by the Comptroller and Auditor-General of India to be laid before each House of Parliament.
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