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Monday, April 8, 2013



While Policymakers must make rules and regulations for fair play and equal opportunities, the real onus lies with the investors for it's optimum utilization and therefore Investor education  is at core heart of healthy market  One of the key challenges to the securities market regulators in India is protection and education of investors and making them aware about market, Corporate  different investment avenues, their merits and illegal transactions. The role of Market regulators is not only to protect the investors but also to provide them platform where, they can understand the grievances and remedies available to them.

The Investors Education and Protection Fund (Awareness and protection of Investors) Rules, 2001 and Section 205 C of Companies Act, 1956 provides for the establishment of Investors Education and Protection Fund. 

Fund shall comprise of following amounts: 
  • Amounts in unpaid dividend account.
  • Application Money received due for Refund.
  • Matured Deposits with Company.
  • Matured Debentures with Company.
  • Interest accrued on above
  • Grants of Govt. given to fund
  • Amount of interest Income on investment of fund.
Provided that the amounts mentioned in first 4 above shall not be credited by the Company to IEPF, unless and until the same has remained unclaimed and unpaid for a period of 7 years from the date on which they become due for payment to investors. Company need to make payment and furnish details of the same in form 1 of Investors education and protection fund.


The Companies who have outstanding amounts as specified in section 205 C of Companies act, 1956 are required to file a statement of the details in that regard in e Form No. 5 INV within 90 days from the Conclusion of Annual General Meeting.

After Filing form 5 INV we need to file excel file containing details of Investors of the Company within 14 days of Challan date of form 5 INV. Following details to be given in the excel file.

  1. Investor First Name
  2. Investor Middle Name.
  3. Investor Last Name
  4. Father/Husband First Name
  5. Father/Husband Second Name
  6. Father/Husband Last Name
  7. Address
  8. Country
  9. State
  10. District.
  11. Pin code.
  12. Folio Number
  13. Investment Type

Pursuant to Rule 7 of The Investors Education and Protection Fund (Awareness and protection of Investors) Rules, 2001, committee has been established for the purpose of administration of fund and it's application for the purposes set forth in the rules. Some of the major area of work for IEPF is;

  1. The Committee shall recommend the following activities relating to investors’ education, awareness and protection:
  2. Education Programs through Media;
  3. Organizing Seminars and Symposia;
  4. Proposals for registration of Voluntary Associations or Institution or other Organizations engaged in investor Education and protection activities;
  5. Proposals for projects for Investors Education and Protection including research activities and proposals for financing such projects;
  6. Coordinating with institutions engaged in Investor Education, awareness, and protection activities.The Committee may also be entrusted with such other functions for carrying out the objects for which the Fund has been established.
  7. The Committee may appoint one or more sub-committees whenever it considers necessary to facilitate efficient and speedy discharge of its functions. 
  8. Sub-committee shall be constituted from amongst the members.
  9. The Chairperson of the Committee may nominate any one of the members of the sub-committee as its convenor and where no such nomination has been made, the members of the sub-committee elect a convenor amongst themselves.
  10. The Committee may have Sub-Committee to examine the end use of grants and assistance and recommend release of funds.  
The Committee shall meet and decide from time to time about various aspects of Investor's Awareness. The Committee shall also be eligible to register various associations and institutions who are engaged in holding investor's awareness program and taking other initiatives with respect to investor's education. 

For the purpose of registration applicants need to file form 3 along with other particulars as required. Whereas Application for release of funds for the activities listed in Rule 7(i) from the organizations or Institutes registered with the Department of Company Affairs shall be made in Form 4. 

A copy of the summary or recommendations of the seminar or program conducted and copy of Accounts for such activity by such organisation e.g. registered associations or chambers of commerce or institutes shall be provided to the Committee within ten days of the conclusion of the seminar or program.

There have been many initiatives on the part of SEBI and other regulatory authorities in this regard for protection and promotion of Investors rights. Wise investors are the requirement of healthy securities market. Online systems and optimum disclosures are other initiatives in this regard, however, the ultimate person for optimum utilization of this facilities will remain the investor himself. 


  1. NICE BLOG!!! Education is the process of bringing desirable change into the behavior of human beings. It can also be defined as the “Process of imparting or acquiring knowledge or habits through instruction or study”. Thanks for sharing a nice information.
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  2. Thanks for sharing ur information..............

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