As of the end of FY 2022-23, unclaimed dividends, interest on bonds, and other unclaimed investments in the Investor Education and Protection Fund (IEPF) totaled ₹5,714.51 crores. This amount grew to ₹8,237.20 crores by the end of FY 2023-24 (unaudited figure), tripling from ₹4,310.36 crores in FY 2019-20. Despite the significant growth in unclaimed funds, the Companies Act, 2013 does not allow for these funds to be spent on welfare programs or corporate social responsibility (CSR) activities. The funds in the IEPF are used solely for purposes specified in Section 125(3) of the Companies Act.
GOVERNMENT OF INDIA
MINISTRY OF CORPORATE AFFAIRS
LOK SABHA
UNSTARRED QUESTION NO. 3347
ANSWERED ON MONDAY THE 16TH DECEMBER, 2024
AGRAHAYANA 25, 1946 (SAKA)
USE OF IEPF FUND FOR CSR ACTIVITIES
QUESTION
3347. SHRI PRABHAKAR REDDY VEMIREDDY:
Will the Minister of CORPORATE AFFAIRS
be pleased to state:
(a) whether the unclaimed dividend, interest on bonds and other unclaimed investments are estimated to be about Rs. 5,500 crores at the end of 2022-23 and if so, the current status thereof;
(b) whether it is also true that this money has been tripled during the last 5-6 years in the Investor Education and Protection Fund (IEPF); and
(c) if so, whether the Government is planning to spend this money for the welfare programmes or CSR activities?
ANSWER
MINISTER OF STATE OF THE MINISTRY OF CORPORATE AFFAIRS AND MINISTRY OF ROAD TRANSPORT AND HIGHWAYS
(HARSH MALHOTRA)
(a) & (b): At the end of Financial Year (FY) 2022-23, the unclaimed dividend, interest on bonds and other unclaimed investments with Investor Education and Protection Fund (IEPF) was ₹ 5,714.51 crores. Further, the unclaimed amount in the IEPF at the end of FY 2023-24 is ₹ 8237.20 crores (unaudited figure). The unclaimed amount in IEPF in FY 2019-20 was ₹4310.36 Cr.
(c): There is no provision under the Companies Act, 2013 to spend the amount from the IEPF on welfare programmes or CSR activities. The amount under IEPF is utilised for all the purposes mentioned in Section 125(3) of the Companies Act, 2013.
