Investor Education and Protection Fund Authority (IEPFA

30.04.2025

Investor Education and Protection Fund Authority (IEPFA

Why in the news?   

           IEPFA’s recent MoU with Kotak Mahindra Bank and the launch of the 'Niveshak Shivir' initiative, to boost digital investor awareness and financial literacy across India.

About Investor Education and Protection Fund Authority (IEPFA)

• The Investor Education and Protection Fund Authority (IEPFA) was established in 2016 under the Companies Act, 2013.
• It manages the Investor Education and Protection Fund (IEPF) and promotes investor awareness and financial protection.
• Nodal Ministry: Ministry of Corporate Affairs
• The IEPF consists of amounts that remained unclaimed for 7 years, including:
  • Unpaid dividends,
  • Application money is due for refund,
  • Matured deposits and debentures,
  • Interest on investments from the fund,
  • Grants or donations received from the government or other entities.

IEPFA’s ‘Niveshak Shivir’ Initiative:

• • ‘Niveshak Shivir’ is a joint initiative of IEPFA and SEBI launched to simplify the process of reclaiming unclaimed dividends and shares.
  • The camps will feature one-stop kiosks set up by companies and RTAs in cities with large numbers of unclaimed dividend holders, starting with Mumbai and Ahmedabad in May 2025.
  • Investors can update KYC and nominations, verify claim status, and get real-time grievance redressal at these camps.
  • The initiative aims to reduce investor dependence on intermediaries, thereby minimising fraud and misinformation risks.
• A QR-code-based Google Form will be used for pre-registration, supported by the regional offices of ICAI and SEBI.

Key facts about Kotak Mahindra Bank Limited:

• Kotak Mahindra Bank Limited, one of India’s premier financial institutions, serves millions of customers through its extensive network of over 2,000 branches and 3,000 ATMs, offering innovative banking and financial solutions.

                               Source: PIB

With reference to the Investor Education and Protection Fund Authority (IEPFA), consider the following statements:

1. It was established under the Companies Act, 2013 to promote investor awareness and safeguard investor interests.

2. It functions under the administrative control of the Ministry of Finance.

Which of the statements given above is/are correct?

A.1 only

B.2 only

C.Both 1 and 2

D.Neither 1 nor 2

Answer A