INVESTOR EDUCATION AND PROTECTION FUND
Applicable section-125
Central Government shall establish a Fund to be called the Investor Education and Protection Fund
(2) There shall be credited to the Fund—
(a) the amount given by the Central Government (MCA) by way of grants after due appropriation made by Parliament (LOK AND RAJAYA SABHA) by law in this behalf for being utilized for the purposes of the Fund (IN CASE OF GRANT REQUIRE APPROVAL FROM PARLIAMENT)
(b) donations given to the Fund by the Central Government, State Governments, companies (section 181 of companies ACT 2013) or any other institution for the purposes of the Fund (IN CASE OF DONATION NOT REQUIRED APPROVAL FROM PARLIAMENT FOR CG)
SECTION 181 OF COMPANIES ACT 2013
The Board of Directors of a company may contribute to bona fide charitable and other funds (INCLUDE IEPF FUND)
Required Board Approval and amount of Contribution LESS OR EQUAL TO 5% OF ANP FOR THE 3 IPFY
Required ORDINARY RESOLUTION (PRIOR PERMISSION) and amount of Contribution EXCEED 5% OF ANP FOR THE 3 IPFYY
(c) the amount in the Unpaid Dividend Account of companies transferred to the Fund under sub-section (5) of section 124;
(d) the amount in the general revenue account of the Central Government which had been transferred to that account under sub-section (5) of section 205A of the Companies Act, 1956 (1 of 1956), as it stood immediately before the commencement of the Companies (Amendment) Act, 1999 (21 of 1999), and remaining unpaid or unclaimed on the commencement of this Act;
(e) the amount lying in the Investor Education and Protection Fund under section 205C of the Companies Act, 1956;
(f) the interest or other income received out of investments made from the Fund;
(g) the amount received under sub-section (4) of section 38;
(h) the application money received by companies for allotment of any securities and due for refund;
(i) matured deposits with companies other than banking companies;(NOT FOR BANKING COMPANY)
(j) matured debentures with companies;
(k) interest accrued on the amounts referred to in clauses (h) to (j);
(l) sale proceeds of fractional shares arising out of issuance of bonus shares, merger and amalgamation for seven or more years;
(m) redemption amount of preference shares remaining unpaid or unclaimed for seven or more years; and
(n) such other amount as may be prescribed:
Provided that no such amount referred to in clauses (h) to (j) shall form part of the Fund unless such amount has remained unclaimed and unpaid for a period of seven years from the date it became due for payment.
#(3) The Fund shall be utilized for—
(a) the refund in respect of unclaimed dividends, matured deposits, matured debentures, the application money due for refund and interest thereon;(REFUND)
(b) promotion of investors’ education, awareness and protection;
(c) distribution of any disgorged amount among eligible and identifiable applicants for shares or debentures, shareholders, debenture-holders or depositors who have suffered losses due to wrong actions by any person, in accordance with the orders made by the Court which had ordered disgorgement;
(d) reimbursement of legal expenses incurred in pursuing class action suits under sections 37 and 245 by members, debenture-holders or depositors as may be sanctioned by the Tribunal; and
(e) any other purpose incidental thereto, in accordance with such rules as may be prescribed:
HOW TO REFUND MONEY FORM IEPF
STEP-1 claimant MAKE ONLINE APPLICATION TO IEPF IN THE E-FORM IEPF-5 IN THE WEBSITE http://www.iepf.gov.in
STEP-2 SEND COPY OF original physical share certificate, bond, deposit certificate, debenture certificate, as the case may be along with Indemnity Bond, Advance Receipts, any other document as attach in Form No. IEPF-5, duly signed by him - TO THE NODAL OFFICER (CS OR DIRECTOR) OF THE CONCERNED COMPANY AT ITS REGISTERED OFFICE FOR VERIFICATION OF THE CLAIM. (CLAIMANT SEND DOCUMENT TO COMPANY)
STEP-3 The company shall, within thirty days(TOTAL 60 DAYS) from the date of receipt of claim, send an online verification report to the authority and shall attach the scanned copy of all the original documents submitted by the claimant in physical form duly certified by its Nodal Officer along with the e-verification report along with a scanned copy of both sides of original physical share certificate or original bond or deposit or debenture certificate/s duly cancelled and certified (ONLINE VERIFICATION REPORT+ scanned document + scanned certificate)
STEP-4 After receipt of verification report from concerned company, The IEPF authority shall disposed of the application within 60 days from the date of receipt of verification report.
