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What is the significance of IEPF unclaimed dividend

What do you mean by IEPF?<br>The IEPF or Investor Education and Protection Fund had been a fund that was initially set up under the Companies Act, 1956. At present, it has been set up under the Companies Act, 2013.<br>It happens to be a fund that has been created for pooling in the dividends of the Asset Management Organizations, debentures, interests, share application interests, matured deposits, and so forth which have not been claimed for at least 7 years.

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What is the significance of IEPF unclaimed dividend

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  1. What is the significance of IEPF unclaimed dividend? What do you mean by IEPF? The IEPF or Investor Education and Protection Fund had been a fund that was initially set up under the Companies Act, 1956. At present, it has been set up under the Companies Act, 2013. It happens to be a fund that has been created for pooling in the dividends of the Asset Management Organizations, debentures, interests, share application interests, matured deposits, and so forth which have not been claimed for at least 7 years. It will be imperative to transfer the money accumulated from these sources to the IEPF. Investors attempting to look for a refund will be able to do so from the IEPF. This fund has been established under the mentorship of the MCA (Ministry of Corporate Affairs India) and SEBI.

  2. For what reason was IEPF introduced? In the initial stages, IEPF was introduced with the intention of utilizing the money of the investors for their benefits like awareness programs, education, and so forth. In the year 2016, the transfer of any underlying share on which there has been IEPF unclaimed dividend for 7 consecutive years was made compulsory by the government. This resulted in confusion in terms of processing of transferring the same to the authorities and there were also some other ambiguities amongst the stakeholders. Consequently, the MCA amended this several times which included the latest amendment in the year 2019 which has streamlined the process of IEPF share transfer. For what reason will the fund be used? The fund will be used for the following: • Promotion of the education, protection, and awareness of the investors. • The refund when it comes to matured deposits, IEPF unclaimed dividend, matured debentures. • Allocation of any expelled amount amongst identifiable and eligible applicants for debentures or shares, debenture-holders, shareholders, or depositors who have sustained losses because of incorrect actions by an individual according to the orders implemented by the Court. • Compensation of any legal expense suffered while pursuing class-action suits by members under sections 245 and 37, depositors, or debenture-holders as might be authorized by the Tribunal.

  3. What are the goals of IEPF? • To educate the investors such that it will be possible for them to analyze plus make sensible decisions. • Making investors educated regarding the operation of the market. • Making investors informed regarding the dynamism of the present market. • Encouraging surveys and research for spreading knowledge amongst investors. • Help the investors to be aware of their rights as well as different regulations regarding investing. Thank You Source Url: https://penzu.com/p/39e181f2 Address: Share SamadhanPvt. Ltd. B - 35, Lower Ground Floor, South Extension - Part II, Block B, New Delhi - 110049

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