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Investor Education and Protection Fund Authority (IEPFA) Organises “Niveshak Shivir” in Hyderabad

31 Aug 2025 GS 3 Economy
Investor Education and Protection Fund Authority (IEPFA) Organises “Niveshak Shivir” in Hyderabad Click to view full image

Context: The Investor Education and Protection Fund Authority (IEPFA), under the Ministry of Corporate Affairs, Government of India, in collaboration with the Securities and Exchange Board of India (SEBI), successfully organised Niveshak Shivir in Hyderabad.

“Niveshak Shivir” – a nationwide investor assistance initiative aimed at enabling investors to reclaim unclaimed dividends and shares with greater ease, improving financial literacy and reducing reliance on intermediaries. The initiative will feature dedicated helpdesks, allowing investors to interact directly with company representatives and Registrars and Transfer Agents (RTAs) for end-to-end assistance.

Investor Education and Protection Fund Authority (IEPFA)

Establishment

  • Introduced under: Section 125, Companies Act, 2013

  • IEPF Authority: Constituted on 7 Sept 2016 by GoI.

  • Statutory body under Ministry of Corporate Affairs.

  • Purpose: Protect investors’ interests, refund unclaimed funds, and promote financial literacy.

Administration of IEPF

  • Authority Composition: Chairperson, CEO, and up to 7 members (appointed by GoI).

  • Functions:

    • Administer IEPF funds.

    • Maintain accounts & records (audited by CAG of India).

    • Submit annual report + audit report to GoI, which is laid before Parliament.

Amounts Credited to IEPF

  1. Grants from the Central Government (appropriated by Parliament).

  2. Donations from Central Govt., State Govts, companies, or other institutions.

  3. Unpaid dividend account amounts (unclaimed for 7 years) with interest.

  4. Shares for which dividend not claimed/paid for 7 consecutive years or more.

  5. Unpaid amounts under Companies Act, 1956 (Sec 205A & 205C).

  6. Interest or income from IEPF investments.

  7. Application money for securities (due for refund).

  8. Matured deposits/debentures (except from banks) unclaimed for 7 years.

  9. Sale proceeds of fractional shares (from bonus, mergers, amalgamations).

  10. Unclaimed redemption of preference shares (≥7 years).

Utilisation of IEPF Amount

  1. Refunds: Unclaimed dividends, matured deposits, matured debentures, application money + interest.

  2. Investor education, awareness & protection.

  3. Distribution of disgorged amount to eligible investors (per court orders).

  4. Reimbursement of legal expenses for class action suits (Sections 37 & 245, CA 2013).

  5. Other incidental purposes under prescribed rules.

Refund of Amounts Credited to IEPF

  • Eligible claimants (shareholders, depositors, debenture-holders) can reclaim funds.

  • Process:

    • File Form IEPF-5 (online on IEPF website).

    • Submit form + documents to company’s Nodal Officer (IEPF).

    • Company verifies and submits report to IEPFA.

    • IEPFA releases refund → Direct transfer to claimant’s Aadhaar-linked bank account.


The IEPF not only refunds unclaimed investor amounts but also acts as a financial literacy and investor protection platform (outreach, education, class-action support).



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