Daily News Analysis

Investor Education and Protection Fund Authority (IEPFA)

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Recently, the Investor Education and Protection Fund Authority (IEPFA), in collaboration with the Securities and Exchange Board of India (SEBI), organised a “Niveshak Shivir” in Jaipur, aimed at enhancing investor awareness and financial literacy.

About Investor Education and Protection Fund Authority

The Investor Education and Protection Fund Authority (IEPFA) was established in 2016 under the provisions of the Companies Act, 2013.
It functions as a statutory body dedicated to
promoting investor awareness, education, and protection through continuous outreach programmes and strategic collaborations.

Purpose and Mandate

The primary purpose of IEPFA is to protect the interests of investors by ensuring greater transparency, awareness, and access to financial information.
It focuses on
financial literacy, prevention of investor fraud, and facilitation of claims related to unclaimed financial assets.

Key Functions of IEPFA

IEPFA performs the following important functions:

  • Management of the Investor Education and Protection Fund (IEPF).

  • Refund of unclaimed shares, dividends, matured deposits, and debentures to rightful investors.

  • Promotion of investor education and awareness to enable informed financial decision-making.

  • Safeguarding investor interests by facilitating recovery of unclaimed assets and reducing instances of financial exploitation.

Investor Education and Protection Fund (IEPF)

The IEPF consists of amounts that have remained unclaimed for a period of seven years, including:

  • Unpaid or unclaimed dividends

  • Application money due for refund

  • Matured deposits and debentures

  • Interest earned on investments from the Fund

  • Grants or donations received from the government or other entities

Nodal Ministry

The Ministry of Corporate Affairs (MCA) is the nodal ministry responsible for overseeing the functioning of the IEPFA.

Major Initiatives of IEPFA

IEPFA implements several flagship initiatives to promote investor education:

  • Niveshak Didi – Focuses on empowering women investors at the grassroots level.

  • Niveshak Panchayat – Promotes financial awareness in rural and semi-urban areas.

  • Niveshak Shivir – Provides on-ground assistance for investor grievance redressal and claim facilitation.

These initiatives aim to create a financially informed and aware citizenry.

Significance

IEPFA plays a crucial role in enhancing trust in financial markets, improving financial inclusion, and ensuring protection of small investors.
By returning unclaimed assets and spreading financial awareness, it strengthens India’s
investor protection framework.


 


 

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