The Investor Education and Protection Fund (IEPF) is a government-backed fund that was established to protect the interests of investors in the securities market. The fund is funded by a number of sources, including amounts transferred by companies that have defaulted on their dividend payments, amounts transferred by companies that have been dissolved or wound up, and fines imposed by the Securities and Exchange Board of India (SEBI) on companies or individuals for violating securities laws.
As of March 2023, the IEPF had a corpus of over ₹1,500 crore. However, a significant portion of this wealth is lying idle. As of March 2023, there were over 1.16 billion unclaimed shares and debentures in the IEPF, with a face value of over ₹5,000 crore. This means that there are millions of investors who are entitled to this money, but they are not aware of it or they have not claimed it.
There are a number of reasons why investors' wealth is lying idle with the IEPF. One reason is that many investors are unaware that they are entitled to this money. Another reason is that the process of claiming unclaimed shares and debentures can be complex and time-consuming. Finally, some investors may simply not be interested in claiming this money.
The government has taken some steps to address the issue of unclaimed shares and debentures in the IEPF. In 2022, the government launched an online portal where investors can search for unclaimed shares and debentures that are held in their name. However, more needs to be done to ensure that investors are aware of their rights and that they are able to claim the money that is rightfully theirs. The government should continue to promote awareness about unclaimed shares and debentures, and it should make the process of claiming this money even easier.
As of March 2023, the IEPF had a corpus of over ₹1,500 crore.
There were over 1.16 billion unclaimed shares and debentures in the IEPF, with a face value of over ₹5,000 crore.
The oldest unclaimed share in the IEPF was issued in 1938.
The most common reason for shares and debentures to become unclaimed is that investors have moved and have not updated their contact details with the company.
Conclusion
Millions of investors' wealth is lying idle with the IEPF. This money could be used to improve the lives of these investors, but it is currently being wasted. The government needs to take further steps to ensure that investors are aware of their rights and that they are able to claim the money that is rightfully theirs.
What can you do?
If you think you may be entitled to unclaimed shares or debentures it is important to claim your unclaimed shares and debentures as soon as possible. The longer you wait, the more likely it is that the money will be lost.
If you have any questions or concerns, please do not hesitate to contact us at 8839401961/7987768169 or email us at info@lawfinadvisor.com. We are available during regular business hours and looking forward to serve you. For more information visit our website www.lawfinadvisor.com.
Comments