The Investor Education and Protection Fund (IEPF) Authority has been able to force The Peerless General Finance and Investment Company Ltd to transfer deposits worth about Rs 1,514 crore to the IEPF.
This depositor’s money was pending with the company (The Peerless General Finance and Investment Company Ltd) for the last 15 years.
This amount was taken by the company by issuing about 1.49 crore Deposit Certificates to more than 1 crore individual investors.
The majority of these investors are common citizens belonging to the lower and middle income group, including daily wage earners, among others. The majority of investors belong to West Bengal
The Investor Education and Protection Fund
The IEPF fund has been set up under the Ministry of Corporate Affairs for promotion of investor awareness and protection of investor interests.
Unclaimed dividend, refund of application money, matured company deposits and debentures, and interest on them are moved to the IEPF fund if not claimed within seven years.
The IEPF is monitored by a trust, which decides how the money will be utilised for specific activities of investor awareness and education.
Once the amount is credited to the IEPF fund, an investor can’t recover the unclaimed amount.
Investors can claim unpaid amounts from the company before they are credited to the IEPF account by following the procedure prescribed by the company.
For administration of Investor Education and Protection Fund Government of India has on 7th September, 2016 established Investor Education and Protection Fund Authority under the provisions of section 125 of the Companies Act, 2013.
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.