November 21, 2001
‘7’ACCRUALS TO INVESTOR EDUCATION AND PROTECTION FUND
Unpaid dividend, unpaid application money received by companies for allotment of securities and due for refund, unpaid matured deposits and unpaid matured debentures, which remain unclaimed and unpaid for a period of seven years from the date they become due for payment, shall be credited to the Investor Education and Protection Fund, set up under Section 205C of the Companies (Amendment) Act, 1999, which has been operationalised with effect from October 1, 2001.Besides, interest accrued on unpaid dividend, interest on unpaid application money received by companies for allotment of securities and due for refund, interest on unpaid matured deposits and interest on unpaid matured debentures shall form part of the Fund.
The Investor Education & Protection Fund shall be utilised for promotion of Investors’ awareness & protection of the interest of Investors in accordance with Investor Education & Protection Fund Rules 2001.
The Rules provide for the modalities as to how the companies shall credit their unclaimed amounts to the Fund, furnish details to the concerned Registrar of Companies, the manner of accounting of the money received, constitution and function of the committee, expenses of the committee and audit of its accounts, the powers of the committee, the matters relating to meetings and how the Committee will register various voluntary agencies or Non-Government Organisations engaged in the activities relating to Investors awareness & education and recommend the utilisation of funds for Education Programmes, organising seminars and conducting projects for Investor protection including research activity, to them.