Investor Education and Protection Fund Authority (IEPFA)

Context:  The IEPFA is seeking applications from young students and scholars for its short-term internship programme which began recently.

About IEPFA:

• IEPF is a statutory body under the Ministry of Corporate Affairs, established under the Companies Act 2013.

• It administers the Investor Education and Protection Fund.
• IEPF Authority has undertaken a proactive approach to achieve its mandate of promoting investor education, awareness and protection.
• Its objective is to promote Investor Education, Awareness, and Protection.
• The Amounts credited to IEPF are maintained under the Consolidated Fund of India (Article 266 of the Constitution).

• Composition:

• Secretary Ministry of Corporate Affairs is the Chairperson of the Authority.

• The Joint Secretary Ministry of Corporate Affairs is the Chief Executive Officer of the Authority.

• The Authority is entrusted with the responsibility of administration of the Investor Education Protection Fund (IEPF), make refunds of shares, unclaimed dividends, matured deposits/debentures etc. to investors and to promote awareness among investors.
• The Authority has taken a 360 degree approach to sensitize stakeholders to include household investors, housewives, professionals, etc. across the country in rural and urban areas through direct investor awareness programmes, media campaign and engaging with other stakeholders with the common goal.
• In the urban and semi-urban areas the Authority organizes investor awareness programmes in association with the Institute of charted Accountants of India, Institute of Cost Accountants of India and Institute of Company Secretaries of India.
• In the rural areas the programmes are organised in collaboration with CSC e-governance Services Private Limited through the Common Service Centre (CSC’s) located in villages.
• Multilingual Information, Education and Communication booklets and films have been developed for creating awareness.
• A Joint Awareness campaign has been launched in association with Reserve Bank of India, Securities and Exchange Board of India & Department of Consumer Affairs.

The IEPF is to be utilized for :

• The refund of unclaimed dividends , matured deposits, debentures , application money due for refund and interest thereon.
• Promotion of investor’s education, awareness and protection.
• Distribution of any disgorged amount among eligible and identifiable applicants for shares or debentures , shareholders, debenture-holders or depositors who have suffered loss due to wrong actions by any one person , in accordance with the ordered made by the court which had ordered disgorgement.

SOURCE:   AIR

Previous year Questions

Q.1) With reference to the ‘Banks Board Bureau (BBB)’, which of the following statements is correct? (2022)

1. The Governor of RBI is the Chairman of BBB.
2. BBB recommends the selection of heads for Public Sector Banks.
3. BBB helps Public Sector Banks in developing strategies and capital-raising plans.

Select the correct answer using the code given below:

1. 1 and 2 only
2. 2 and 3 only
3. 1 and 3 only
4. 1, 2 and 3

Q.2) With reference to “National Investment and Infrastructure Fund’, which of the following statements is/are correct? (2018)

1. It is an organ of NITI Aayog.
2. It has a corpus of Rs. 4, 00,000 crores at present.

Select the correct answer using the code given below:

1. 1 only
2. 2 only
3. Both 1 and 2
4. Neither 1 nor 2