Recovery from Investor Education And Protection Fund
To protect investors' interests and promote awareness, IEPF was established under Section 125 of the Companies Act, 2013 ('Act'). All unpaid dividends or unclaimed amounts belonging to a company's investors are pooled and credited into the IEPF. The IEPF Authority will utilise and spend the money of the IEPF funds only for the purposes mentioned in the Act. The Comptroller and Auditor-General of India will audit the accounts of the IEPF.
What are the uses of this Fund?
> To issue refunds in respect of unclaimed dividends, matured deposits, matured debentures, to the people who have genuine case.
> To promote investors’ education, protection and awareness
> To make payment to the shareholders or debenture holders, or depositors who have suffered losses due to wrong actions by any Company, as directed by Courts
> To reimbursement of legal expenses as incurred by shareholders or debenture holders, or depositors who have suffered losses due to wrong actions by any Company
Thus, it is clear that Government’s is just holding these shares on behalf of the shareholders and they are to be transferred to the person who has a genuine claim for the investment. It is specifically written in the act that the prime use of this fund will be to refund money to the Investors. Until then Government continues to enjoy the fund.
We at KAA Recovery Advisors Pvt. Ltd, with a team of 10+ people including Chartered Accountants, Company Secretaries & Lawyers, understand that the end-to-end recovery process requires a patient, professional approach and thus our roles come into picture.
We can help the claimant end-to-end from calculation of his claim amount to the recovery of his claim. We offer the following services in this regard:
1) Calculation of the Claim amount for the claimant and certifying form the RTA of the Company
2) Opening of a Demat Account of the Claimant, if required
3) Filing of IEPF-5 to the authority
4) End to End following up with the RTA, Company and IEPF authority
5) Submitting necessary forms, documents, affidavits etc.
6) Making sure that the recovery process is completed in the shortest possible time