Investor Education and Protection Fund (IEPF) has been established under provision of Section 125 of the Companies Act, 2013 with the objective to make refund of unclaimed shares and amounts like unpaid dividend and other unpaid amounts which have been transferred by companies to IEPF.
The fund is to be utilised to make refund to eligible claimants and to promote investor education, awareness and protection. The fund is maintained under consolidated fund of India.
The authority has been entrusted with the responsibility to make refunds of unclaimed dividends, mature deposits, mature debentures, etc and to conduct Investor Education and Awareness Programme.
As per section 125 of the Companies Act, 2013, the following amounts are credited to the Fund:
As per provisions of the section 124(6) of the Companies Act, 2013, all shares in respect of which dividend has not been paid or claimed for seven consecutive years or more shall be transferred by the company in the DEMAT Account of IEPF Authority opened for the purpose.
As per the Section 125(3) of Companies Act, 2013, the fund shall be utilised for:
Any person claiming to be entitled to the amount referred in sub-section (2) may apply to the IEPF Authority for the payment of the money claimed.
For seeking refund, claimant is required to file e-form IEPF-5 online which is available on the website www.iepf.gov.in or www.iepfportal.in and submit the copy of filled e-form along with requisite documents to concerned company for verification. On receipt of documents from claimant, company is required to verify the same and furnish its verification report to the Authority recommending the acceptance or reject the refund claim with reasons there to. On the basis of verification report of the company, claims are processed in the Authority.
IEPF Authority has undertaken several awareness initiatives to create awareness among investors. These are: