What is Investor Education and Protection Fund? | IEPF Section 125 | Investor Education | Enterslice скачать в хорошем качестве

What is Investor Education and Protection Fund? | IEPF Section 125 | Investor Education | Enterslice

The Investor Education and Protection fund or #IEPF, is a fund established to protect the interest of the investors and promote awareness among the investors. # To protect the investor from unfair harassment from the company, the Central government has established the authority, which is claimed to be known as Investor Education and Protection Fund Authority.# Initially, the concept was introduced with the intention of using the investor funds for their benefit, such as through investor education and investor awareness programmes. But after 2016, the government has made it mandatory to transfer the underlying shares held by the company in the #IEPFfund. What is the Composition of IEPF Authority? The Central Government, by way of Sub clause 5 of Section 125 of the Companies Act, provides that an authority is to be established who will manage the affairs of the IEPF authority. By way of legislative enactment in the Companies Act, 2013, the central government provides the authority a statutory power. The authority will be responsible for protecting the interest of the investor and promoting awareness among every #investor. A Chairperson who will be the secretary of Ministry of Corporate Affairs, and acts as an ex-office chairperson. A Chief executive officer of the authority who shall be appointed by the Central government. and other Six Members who will be nominated by#RBI and #SEBI and out of which 4 Persons shall possess special knowledge and experience of not less than 15 years in the field of law, accountancy or finance. What are the Amounts can be deposited in the IEPF Fund? • There are various amounts that can be deposited in the IEPF fund which shall as follows: • The amount granted by the central government after due appropriation made by the parliament • Any donations received in the fund given by the central government, state government, companies or any other institution. • The amount transferred by the company in the unpaid dividend account under sub clause 5 of Section 124 of Companies act. • Any amount which is lying in IEPF under Section-205C of the companies act. • Any income generated or interest accrued from the investment made from the fund. • Any amount received under Section-38(4) of the companies act • Any application money which is due for refund. • Any matured deposits • Any sale proceeds of fractional shares made out of the issuance of bonus shares, merger, and amalgamation for seven years or more. • Any redemption amount which remained underlying for more than 7 Years or more. • Any other amount which the government may prescribe from time to time What is the utilization of the IEPF Fund? The fund underlying in the account of the Investor Education and Protection Fund is to be utilised for: The refund in respect of matured deposits, unclaimed dividends, the application money due for refund, mature debentures and interest accrued over a period of time on the said deposits. The protection of the interest of the investor and provide awareness among them. 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, Reimbursement of all the legal expenses incurred in the class action suits under Section-37 and 245 of the companies Act, 2013. Any additional purpose, in accordance with the rules as prescribed by the central government from time to time. Who has the authority to audit the IEPF account? The comptroller and auditor general of India shall be the apex body in respect of auditing of accounts. The accounts of the IEPF fund shall be audited in such intervals as may be prescribed by the #CAG from time to time and The report of the #audit shall be supplied to the central government along with all the #financial documents. Know more visit: https://enterslice.com/learning/inves... Want to know more about #Enterslice Share, Support, Subscribe!!! to our YouTube channel: http://bit.do/fqM2B Facebook:   / enterslice   Twitter:   / enterslice   LinkedIn:   / enterslice   Instagram:   / enterslice_official