January 15, 2002
‘7’
GOVERNMENT CONSTITUTES COMMITTEE TO ADMINISTER INVESTOR PROTECTION FUND
The Government in the Department of Company Affairs (DCA) has issued a notification under sub-section (4) of Section 205C of the Companies Act, 1956, constituting a 13-member Committee to administer the Investor Education and Protection Fund established by the Central Government with effect from October 1, 2001.
The Committee shall comprise a Chairman and 12 other members. The Secretary, DCA, Shri Vinod Dhall will be the Chairman. The Members are: Smt. Aruna Makhan, Additional Secretary and Financial Advisor, DCA, S/Shri N. Sadasivan, Executive Director, Reserve Bank of India, R.M. Joshi, Executive Director, Securities and Exchange Board of India, S. Balasubramaniam, Vice Chairman, Company Law Board, Prof. J.L. Gupta, Sri Ram College of Commerce, P.N. Vijay, Investment Analyst, Delhi, Ms. Sucheta Dalal, Journalist, Mumbai, Kirit Somaiya, Member of Parliament (Lok Sabha), Manu Chadha, Chartered Accountant, Rajendra Chitale, Chartered Accountant, Ajay Shah, Consultant, Department of Economic Affairs, Ministry of Finance and Rajiv Mehrishi, Joint Secretary, DCA.
The Members of the Committee shall hold office for a period of two years from now onwards.
The Investor Education and Protection Fund will comprise amounts in unpaid dividends accounts of companies; the application moneys received by companies for allotment of any securities and due for refund; matured deposits with companies; the interest accrued on the amounts. The amounts that shall form part of the fund are such amounts that have remained unclaimed and unpaid for a period of seven years from the date they become due for payment.
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.