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The Investor Education and Protection Fund Authority (IEPFA), established in 2016 under the Companies Act, 2013, functions under the Ministry of Corporate Affairs (MCA) with the mandate of safeguarding investor interests, refunding unclaimed financial assets, and promoting financial literacy across India.

Mandate and Fund Structure

The Investor Education and Protection Fund (IEPF) consists of amounts that remain unclaimed for seven years, including:

• Unpaid dividends,
• Application money due for refund,
• Matured deposits and debentures,
• Accrued interest on investments,
• Grants and donations received from government or other entities.

The fund is utilized to refund unclaimed shares/dividends to rightful investors and to spread financial awareness among citizens.

Recent Developments: Integrated Portal

IEPFA is in the final phase of testing its Integrated Portal, a unified digital platform aimed at:

• Streamlining claim processes for unclaimed shares/dividends,
• Enhancing accessibility for both investors and companies,
• Integrating stakeholders such as depositories and the Public Financial Management System (PFMS).

Companies have been urged to upload their IEPF-1/7 SRNs with prescribed templates to enable smooth data verification and claim processing.

Key Features of the New System

• Simplified claims for low-value refunds through reduced documentation.
• Integrated Call Center to strengthen grievance redressal and ensure responsive communication with stakeholders.
• Temporary disruptions may occur during transition, but the reforms promise faster, transparent, and investor-friendly outcomes.

Investor Awareness Initiatives

IEPFA also undertakes extensive financial literacy campaigns through programs like:

• Niveshak Didi,
• Niveshak Panchayat,
• NiveshakShivir.

These initiatives empower citizens, particularly in rural and semi-urban areas, to make informed financial decisions and protect themselves from fraud and mismanagement.

Significance

• For Investors: Easier access to unclaimed assets and improved grievance redressal.
• For Companies: Structured compliance framework and digital integration with regulators.
• For Governance: Strengthens India’s financial ecosystem by combining investor protection with financial literacy.