Investor Education And Protection Fund?

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Investor Education And Protection Fund
Investor Education and Protection Fund | Ministry of Corporate Affairs » Updated on March 5, 2023, 22623 views education and protection fund or IEPF is a fund set up under the Section 205C of the Companies Act, 1956 to pool all the dividends of the, matured deposits, share application interests or money,, interests, etc.
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What is investor education and protection fund?

Investor Education and Protection Fund (IEPF) – Investor Education and Protection Fund (IEPF) has been established under Section 205C of the Companies Act, 1956 by way Companies (Amendment) Act, 1999 for promotion of investors awareness and protection of the interests of investors.

  • Acts, Rules & Guidelines TOP The IEPF is administered under the provisions of Section 205C of Companies Act, the Rules framed there under and the guidelines issued by the Committee and the Sub- Committee.
  • For more details click the relevant links below.
  • Section 205C of the Companies Act, 1956 provides for establishment of Investor Education and Protection Fund which was introduced by way of Companies (Amendment) Act, 1999 w.e.f.31.10.1998.

For more details, please click at the links below. Act The Fund is administered as per the provisions of Investor Education and Protection Fund (awareness and protection of investors) Rules, 2001 notified on 01.10.2001. For more details, please click at the links below Rules In addition the Committee/Sub-Committee on IEPF has formulated certain guidelines for the various activities under IEPF.

  1. Submission of Research Proposals Guidelines for submission of Research Proposals 1.2000 word outline of the research program that is being proposed including rationale of why the same fits the goal of Investor Education and Protection Fund.2.
  2. Resume of all the Researchers involved giving the full details along with their background.3.

Three best recent published/unpublished papers of the researchers.4. Letters of commitment by researchers promising that they will put atleast 50% of their time for the proposed project from a stated starting date and a stated ending date.5. Two specific paper proposals of 1000 words each, out of the larger research program.6.

  1. The guidelines of the NSE Research Initiative for writing paper proposals should be rigidly used (see NSE web site).
  2. Funding NGOS To fight Class Action Suits Guidelines for funding NGOs to fight class-action suits” (1) Organisation should be registered by the Department of Company Affairs under the IEPF.

(2) Whenever funding will be required under IEPF to fight a class-action suit prior approval of the Department of Company Affairs/IEPF will be required to be obtained. (3) No request for funding will be entertained in a case where any of the Government Departments or other regulatory bodies are made respondents; (4) Legal expenses will be reimbursed (not given in advance) only in cases where the judgment is in favour of the investors; (5) Expenditure on fee to advocates shall be regulated as per provisions of Delegation of Financial Powers Rules, 1978; (6) The total quantum of assistance will be on expenditure incurred on fee of advocates, official documents and other related expenses and not on creation of assets like furniture, computers etc.; (7) The quantum of assistance will not exceed 5% of the budget of IEPF that year, out of which 20% of the expenses will be borne by the voluntary organization; (8) No frivolous cases shall be launched to gain popularity and publicity; (9) Amount given shall be subject to audit by the Department of Company Affairs or any other Government agency; Financial Assistance from the IEPF Criteria/guidelines for the purpose of financial assistance from the Investor Education and Protection Fund (i) Any organisation/entity who has a viable project proposal on investors education and protection should be eligible for assistance from the Fund.

(ii) The limit for each person/organisation for assistance from the Fund should be subject to 5% of the budget of IEPF during that financial year and not exceeding 80% of the amount to be spent on the proposed programme/activity. (iii) The associations or institutions or organisations already engaged in activities relating to investor awareness, education and protection and proposing to take up investors programmes, organising seminars, symposia etc.

shall undertake projects for investor protection including research activities. (iv) The associations or institutions or organisations shall be registered under the Societies Registration Act or formed as Trusts or incorporated companies. (v) Associations or institutions or organisations, shall unless specific exemption has been made in this regard by the Committee on IEPF, be in existence for a minimum period of 2 years prior to its date of application for registration.

Vi) Associations or institutions or organisations shall have a minimum of 20 Members and a proven record of 2 years. (vii) The association or institution or organisation shall have rules, regulations and or by-laws for the governance and management of the association or institution or organisation. These rules, regulations and or by-laws shall be in conformity with the conditions of registration.

The association or institution or organisation shall be managed by a governing Board/management committee. (viii) No profit making association or institution or organisation shall be eligible for registration for the purposes of financial assistance from the fund.

  1. Ix) Notwithstanding the above the Committee on IEPF can give a project to any organisation.
  2. X) The amount of grant assistance given from the Fund shall be subject to an audit by the Department of Company Affairs to ensure its proper utilization.
  3. Xi) While considering the proposals the Committee will take into account the audited accounts and the annual reports of the last three years of the organisation seeking assistance from the Fund.

Committee TOP There is a Committee (Commonly referred to as Main Committee or Apex Committee) to administer the IEPF. The Committee can appoint Sub – Committee to facilitate efficient and speedy discharge of its functions. To know more about the Main Committee or Sub- Committee click on the relevant links below.

  1. Main Committee Brief of Main Committee Pursuant to Section 205C(4) read with Rule 7 of the IEPF Rules 2001, the Central Government has constituted a Committee vide SO No.125(E) dated 28-1-2004.
  2. Secretary, Department of Company Affairs is Chairman of the Committee.
  3. The members are representatives of Reserve Bank of India, Securities Exchange Board of India, and experts from the field of investors education and protection.

The non-official members of the Committee hold office for a period of two years. The official members hold office for a period of two years or until they occupy their position whichever is earlier. The term of the present Committee is two years with effect from 28th January, 2004.

Previous Committees (SO 1280 (E), dated 28th December, 2001 ) Present Committee Notification -S.O.125 (E) Dated 28th January,2004 Functions of the Main Committee The Committee shall recommend the following activities relating to investors education, awareness and protection: (a) Education Programmes through Media; (b) Organizing Seminars and Symposia; (c) Proposals for registration of Voluntary Associations or Institution or other Organizations engaged in Investor Education and Protection activities; (d) Proposals for projects for Investors Education and Protection including research activities and proposals for financing such projects; (e)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.

(f)The Committee may appoint one or more Sub-Committees whenever it considers necessary to facilitate efficient and speedy discharge of its functions. (i) Sub-Committee shall be constituted from amongst the members. (ii) 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.

Iii) The Committee may have Sub-Committee to examine the end use of grants and assistance and recommend release of funds. Functions of Committee The Committee shall recommend the following activities relating to investors education, awareness and protection: (a) Education Programmes through Media; (b) Organizing Seminars and Symposia; (c) Proposals for registration of Voluntary Associations or Institution or other Organizations engaged in Investor Education and Protection activities; (d) Proposals for projects for Investors Education and Protection including research activities and proposals for financing such projects; (e) 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.

(f)(i) The Committee may appoint one or more Sub-Committees whenever it considers necessary to facilitate efficient and speedy discharge of its functions. (i) Sub-Committee shall be constituted from amongst the members. (ii) 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.

1 Shri Anurag Goel, Secretary, Ministry of Company Affairs Chairman
2 Additional Secretary &Financial Adviser Ministry of Company Affairs Member
3 Dr. Nitish Sengupta Member
4 Shri R.K. Pandey Member
5 Shri S.R. Bansal Member
6 Executive Director, RBI Member
7 Shri Dilip Cherian Member
8 Shri Chinubhai R. Shah Member
9 Executive Director, SEBI Member
10 Shri Mohan Guruswamy Member
11 Shri B.D. Narang Member
12 Shri Y.S. Malik, Jt. Secretary, Ministry of Company Affairs Convener

Shri S Balasubramanian, Chairman, Company Law Board – Special Invitee Shri Y.S. Malik, Joint Secretary, Department of Company Affairs – Convenor Sub Committee Brief of Sub-Committee Rule 7(f) of the Investor Education and Protection Fund (awareness and protection of investors) Rules, 2001 provides that the Committee may appoint one or more sub-committees amongst its members whenever it considers necessary to facilitate efficient and speedy discharge of its functions.

  1. The Chairperson 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.
  2. The Committee may have Sub-Committee to examine the end use of grants and assistance and recommend release of funds.

Constitution of the Sub-Committee on IEPF A sub-committee consisting of the following members has been reconstituted:

1 Additional Secy. & Financial Advisor/MCA Chairman
2 Shri Dilip Cherian Member
3 Shri R.K. Pandey Member
4 Shri S.R. Bansal Member
5 Shri Y.S. Malik, Joint Secretary/MCA Convenor

Credits to IEPF TOP Section 205C (2) of the Companies Act, 1956 specifies the amounts that shall be credited to Investor Education and Protection Fund in the prescribed manner. For more details please click on the following links. Amount to be Credited to IEPF The following amounts that remained unpaid and unclaimed for a period of seven years from the date they became due for payment is credited to the fund:

1 Amounts in the unpaid dividend accounts of the companies
2 the application moneys received by companies for allotment of any securities and due for refund
3 matured deposits with companies
4 matured debentures with companies
5 the interest accrued on the amounts referred to in clauses (i) to (iv
6 grants and donations given to the fund by the Central Government, State Governments, companies or any other institutions for the purposes of the fund; and
7 the interest or other income received out of the investments made from the fund

Procedure for Crediting (i) Any amount required to be credited by the companies to the Fund, as provided in the Act shall be remitted into the concerned specified branches of Punjab National Bank, within a period of thirty days of such amounts becoming due to be credited to the Fund.

Ii) (a) The amount shall be tendered by the companies on behalf of the Central Government in authorized branches of Punjab National Bank along with Challan (in triplicate) and the Bank will return two copies duly stamped to the Company as token of having received the amount. (b) Every Company shall file with the concerned Registrar of Companies one copy of the Challan referred to in (a) evidencing deposit of the amount to the Fund.

The Company shall fill in the full description and nature of the amount tendered and its Head of Account. (c) Every Company shall, when effecting a credit to the account of the Fund, will separately furnish to the concerned Registrar of Companies a statement in Form 1 duly certified by a Chartered Accountant or a Company Secretary or a Cost Accountant practicing in India or by the statutory auditors of the company.

However, it is mandatory that each Company keep a record relating to folio number, Certificate Number etc. in respect of persons to whom the amount of unpaid or unclaimed dividend, application money, matured deposit or debentures, interest accrued or was payable, for a period of three years and the Committee or Sub-Committee shall have powers to inspect such records of that period.

Manner of Accounting: All amounts received shall be accounted for under the following Heads of account, which shall thereafter be transferred to the Fund. MAJOR HEAD 0075 – Miscellaneous General Services. Minor Head 104 – Unclaimed and unpaid dividends, deposits and debentures etc.

Interest on unpaid dividendInterest on unpaid application money received by Companies for allotment of securities and due for refund. Interest on unpaid matured deposits. Interest on unpaid matured debentures.

Note: (a) to (d) shall be sub-heads, (e)(i) to (iv) shall be detailed heads. Current Credit As per the figures furnished by the ROCs the amount of Rs.241,59,51,347.45 is credited to the Fund at the end of the financial year 2003-2004. The entire amount is maintained in the Consolidated Fund of India. Forms for Crediting Activities TOP Investor Education and Protection Fund (awareness and protection of investors) Rules, 2001 stipulates the activities related to investors education, awareness and protection for which the financial sanction can be provided under IEPF. (i) Activities stipulated under Rules Education programme through Media Organising Seminars and Symposia; Proposals for registration of Voluntary Associations or Institution or other organizations engaged in Investor Education and Protection activities. Proposals for projects for Investors Education and Protection including research activities and proposals for financing such projects; Coordinating with institutions engaged in Investors Education, awareness and protection activities. (ii) Activities undertaken by IEPF Educating and creating awareness among investors through Voluntary associations or organisations registered under IEPF.15 associations have been registered so far. Educating investors through Media. – Conducted Panel discussions on DD (Delhi, Mumbai, Kolkata, Chennai and Ahmedabad), Telecast of TV Video spots on DD & private channels, advertisement in national as well as regional newspapers. All these programmes have been undertaken in Hindi, English and regional languages. Organising seminars and workshops through associations registered under IEPF. Financing research projects pertaining to investor education, awareness; Coordinating with institutions engaged in investor education, awareness Indian Institute of Capital Markets (IICM) has been engaged for conducting research/study on unclaimed dividend, interest etc. and also conducting Training of Trainers programme Registration of Organisation TOP Any voluntary organisation or association engaged in investor education and protection activities may register itself under IEPF. For details please click on the following links:- Procedure for registration Any association or institutions or organizations, engaged in the activities relating to investors awareness, education and protection and proposing for investors programmes; organizing seminar; symposia and undertake projects for investor protection including research activities may register itself under Investor Education and Protection Fund. Such NGOs/Voluntary agencies which fulfill the Criteria/guidelines for the purpose of financial assistance from the Investor Education and Protection Fund may apply to the IEPF for such assistance in Form 3 and Form 4, Form 3 List of organisations registered under IEPF, Procedure for Registration Financial Sanctions TOP Any voluntary organisation registered under IEPF may apply for financial assistance under IEPF in the prescribed form. For details please click on the links below:- Who can Apply Any organisation/Association/Society which fulfills the Criteria/ guidelines for financial assistance under the IEPF can apply. Procedure for Financial Assistance General Procedure Any association or institution or organization which fulfills the criteria/guidelines for financial assistance under IEPF and engaged in the activities relating to investors awareness, education and protection and proposing for investors programmes, organizing seminar; symposia and undertake projects for investor protection including research activities may register for financial assistance under Investor Education and Protection Fund. Such NGOs/Organisation may submit the application in Form 3 and Form 4. The feasibility of the project, quantum of financial assistance, genuineness of the organisation, etc. are considered by the Sub Committee in its meeting held in a regular intervals. After the Sub -Committee approves the proposal of the organisation, the IEPF Section issues fincnial sanction with the approval of Internal Finance Wing of the Ministry of Company Affairs. The amount is released to the organization only after submission of the BOND and pre receipt to the IEPF. After the project is over, the organisation is required to submit the utilization certificate and copies of the bills etc. to the IEPF for scrutiny. Who can apply Any organisation/Association/Society which fulfills the Criteria/guidelines for financial assistance under the IEPF can apply. How to apply The organisations are required to submit their applications in Form 3 and Form 4 Form 4 Details of financial assistance sanctioned under IEPF Media Programmes This Ministry is also educating investors and creating awareness through media activities. Programmes relating to Investors Awareness and Education were undertaken over the Electronic Media. For details (click here). Advertisement to educate the investors regarding the agencies to be approached for settling of their grievances was published in the National dailies. (click here) Electronic Media Print Media Special Schemes TOP Financial assistance has also been provided under this Fund for some special projects and research activities for the benefits of investors. To know about these projects please click at the links below Watchoutinvestors.com Class Action Suits Training of Trainers Programme(TOT) Frequently Asked Questions (FAQ’s) TOP Q1. Who can Apply for Financial Sanctions? Answer: Any organisation/Association/Society which fulfills the Criteria/ guidelines for financial assistance under the IEPF can apply. Q2. How to Apply ? Answer: The organisations are required to submit their applications in Form 3 and Form 4 Q3. What is IEPF? Answer: Investor Education and Protection Fund (IEPF) has been established under Section 205C of the Companies Act, 1956 by way Companies (Amendment) Act, 1999 for promotion of investors awareness and protection of the interests of investors. Q4. What activities are being undertaken ? Answer :Investor Education and Protection Fund (awareness and protection of investors) Rules, 2001 stipulates the activities related to investors education, awareness and protection for which the financial sanction can be provided under IEPF. (i) Activities stipulated under Rules Education programme through Media Organising Seminars and Symposia; Proposals for registration of Voluntary Associations or Institution or other organizations engaged in Investor Education and Protection activities. Proposals for projects for Investors Education and Protection including research activities and proposals for financing such projects; Coordinating with institutions engaged in Investors Education, awareness and protection activities. Q5. What is the procedure for Registration? Answer: (ii)Activities undertaken by IEPF Educating and creating awareness among investors through Voluntary associations or organisations registered under IEPF.15 associations have been registered so far. Educating investors through Media. – Conducted Panel discussions on DD (Delhi, Mumbai, Kolkata, Chennai and Ahmedabad), Telecast of TV Video spots on DD & private channels, advertisement in national as well as regional newspapers. All these programmes have been undertaken in Hindi, English and regional languages. Organising seminars and workshops through associations registered under IEPF. Financing research projects pertaining to investor education, awareness; Coordinating with institutions engaged in investor education, awareness Indian Institute of Capital Markets (IICM) has been engaged for conducting research/study on unclaimed dividend, interest etc. and also conducting Training of Trainers programme. Q6. What is procedure for crediting to IEPF ? Answer: (i)Any amount required to be credited by the companies to the Fund, as provided in the Act shall be remitted into the concerned specified branches of Punjab National Bank, within a period of thirty days of such amounts becoming due to be credited to the Fund. ii) (a) The amount shall be tendered by the companies on behalf of the Central Government in authorized branches of Punjab National Bank along with Challan (in triplicate) and the Bank will return two copies duly stamped to the Company as token of having received the amount. (b) Every Company shall file with the concerned Registrar of Companies one copy of the Challan referred to in (a) evidencing deposit of the amount to the Fund. The Company shall fill in the full description and nature of the amount tendered and its Head of Account. (c) Every Company shall, when effecting a credit to the account of the Fund, will separately furnish to the concerned Registrar of Companies a statement in Form 1 duly certified by a Chartered Accountant or a Company Secretary or a Cost Accountant practicing in India or by the statutory auditors of the company. However, it is mandatory that each Company keep a record relating to folio number, Certificate Number etc. in respect of persons to whom the amount of unpaid or unclaimed dividend, application money, matured deposit or debentures, interest accrued or was payable, for a period of three years and the Committee or Sub-Committee shall have powers to inspect such records of that period. Q7. Which amounts are to be credited to IEPF ? Answer :The following amounts that remained unpaid and unclaimed for a period of seven years from the date they became due for payment is credited to the fund: (i) amounts in the unpaid dividend accounts of the companies; (ii) the application moneys received by companies for allotment of any securities and due for refund; (iii) matured deposits with companies; (iv) matured debentures with companies; (v) the interest accrued on the amounts referred to in clauses (i) to (iv); (vi) grants and donations given to the fund by the Central Government, State Governments, companies or any other institutions for the purposes of the fund; and (vii) the interest or other income received out of the investments made from the fund: Q8. What is the manner of Accounting ? Answer :All amounts received shall be accounted for under the following Heads of account, which shall thereafter be transferred to the Fund. MAJOR HEAD 0075 – Miscellaneous General Services. Minor Head 104 – Unclaimed and unpaid dividends, deposits and debentures etc. of Investors in Companies: (a) Unpaid dividend. (b) Unpaid application money received by Companies for allotment of securities and due for refund (c) Unpaid Matured Deposit. (d) Unpaid Matured Debentures. (e) Interest accrued on (a) to (d) (i) Interest on unpaid dividend (ii) Interest on unpaid application money received by Companies for allotment of securities and due for refund. (iii) Interest on unpaid matured deposits. (iv) Interest on unpaid matured debentures. Note: (a) to (d) shall be sub-heads, (e)(i) to (iv) shall be detailed heads.

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How do I get my shares back from IEPF?

Process of refund of Securities Claimant to claim amount / shares by submitting an online application in Form IEPF-5. Claimant to submit the print out of Form IEPF-5 along with other documents to the Nodal Officer of the company at its registered office for verification of the claim.
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How do I claim investor protection fund?

Undertaking by a Client Making a Claim – Any client desirous of making a claim under these Bye-laws shall be required to sign and submit an undertaking to the Exchange while submitting a claim to the effect that the decision of the Relevant Authority shall be final and binding on him.
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What are the objectives of investor education and protection fund?

➢ Empowering the investors by making them aware of their rights and responsibilities under various laws ➢ Continuously disseminating information about unscrupulous elements and unfair practices in securities market and ➢ Broadening the investors’ base by encouraging new investors to participate in securities market ➢
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How does investor protection fund work?

NSE has established an Investor Protection Fund with the objective of compensating investors in the event of defaulters’ assets not being sufficient to meet the admitted claims of investors, promoting investor education, awareness and research. The Investor Protection Fund is administered by way of registered Trust created for the purpose.

Ms. Mona Bhide, Chairperson Mr. K Narasimha Murthy, Trustee Mr. Surinder Verma, Trustee Ms. Priya Subbaraman, Trustee Mr. S Ravindran, Trustee

IPFT Corpus

FINANCIAL YEAR CLAIMS PAID/PROVIDED (IN RS. CRORES) CLOSING IPFT CORPUS (IN RS. CRORES)
2015-16 15.83 548.92
2016-17 17.84 579.76
2017-18 13.57 644.46
2018-19 106.21 619.37
2019-20 69.03 590.48
2020-21 552.56 1773.94
2021-22 534.92 1603.44
2022-23* 124.41 1587.37

As on February 28, 2023 (Unaudited and Provisional) Download Status of Claims (.xlsx)
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What is the main purpose of investors protection?

Office of Investor Assistance and Education – Securities and Exchange Board of India (SEBI) has been established with the prime mandate to protect the interest of investors in securities. It is also mandated to promote the development of, and to regulate the securities market. An investor enjoys investing, if

he knows how to invest; he has full knowledge of the market; the market is safe and there are no miscreants; and there are arrangements for redressal in case of grievances. Accordingly, SEBI’s investor protection strategy has four elements.

First, build the capacity of investors through education and awareness to enable an investor to take informed investment decisions. SEBI endeavours to ensure that the investor learns investing, that is, he obtains and uses information required for investing, evaluates various investment options to suit his specific goals, ascertains his rights and obligations in a particular investment, deals through registered intermediaries, takes necessary precautions, seeks help in case of any grievance, etc.

SEBI has been organizing investor education and awareness workshops directly, and through investor associations and market participants, and been encouraging market participants to organize similar programmes. It maintains an updated, comprehensive web site for education of investors. It publishes various kinds of cautions through media.

It responds to the queries of investors through telephone, e-mails, letters, and in person for those who visit SEBI office. Second, make available every detail relevant for investment in public domain. SEBI has adopted disclosure based regulatory regime.

  • Under this framework, issuers and intermediaries disclose relevant details about themselves, the products, the market and the regulations so that the investor can take informed investment decisions based on such disclosures.
  • SEBI has prescribed and monitors various initial and continuous disclosures.

Third, ensure that the market has systems and practices which make transactions safe. SEBI has taken various measures such as screen based trading system, dematerialization of securities, T+2 rolling settlement, and framed various regulations to regulate intermediaries, issue and trading of securities, corporate restructuring, etc.

  • To protect the interests of investors in securities.
  • It also ensures that only the fit and proper persons are allowed to operate in the market, every participant has incentive to comply with the prescribed standards, and the miscreant are awarded exemplary punishment.
  • Fourth, facilitate redressal of investor grievances.

SEBI has a comprehensive mechanism to facilitate redressal of investor grievances against intermediaries and listed companies. It follows up with the companies and intermediaries who do not redress investors’ grievances, by sending reminders to them and having meetings with them.

  • It takes appropriate enforcement actions as provided under the law (including launch of adjudication, prosecution proceedings, directions) where progress in redressal of investor grievances is not satisfactory.
  • It has set up a comprehensive arbitration mechanism in stock exchanges and depositories for resolution disputes of the investors.

The stock exchanges have investor protection funds to compensate investors when a broker is declared a defaulter. Depository indemnifies investors for loss due to negligence of depository or depository participant.
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How long does IEPF stock take to recover?

IEPF Refund – IEPF Zone Are you looking for IEPF Refund ? If yes then you’re at the right place, please continue reading this article! Investor Education and Protection Fund (IEPF) has been established under Section 205C of the Companies Act, 1956 by way Companies (Amendment) Act, 1999 for promotion of investors’ awareness and protection of the interests of investors.

  1. If you do not claim your dividend for 7 years, then it is handed over to the IEPF refund authority created by the Government of India so that your money is kept in safe custody and the company cannot misuse it.
  2. The rule of IEPF says that 2 months before the company transfers unclaimed dividends, shares, debentures to IEPF authorities, will try to find investors through mail, post and telephone and tell them that we have your unclaimed amount.

You take it or else it will be given to IEPF, But very few people are able to find in this process because almost everyone’s address, email, phone has changed over time. That is why you must have seen that nowadays every company keeps updating KYC time to time so that important information can be given to investors without any glitch.

Even after informing, if someone does not make a claim, then it is given to the IEPF refund authority and the company puts this information on its website so that anyone can see it, and can take the information from there while claiming their IEPF refund or claim. Now once your belongings transferred to IEPF and if you want your money back then you have to fill the IEPF refund Form-5 along with requisite documents and give it to the Nodal Officer appointed by the IEPF,

This process may take from 1 month to 1 year, depending on which category your case belongs to. With the IEPF Authority, you can not only claim a dividend, but can also claim a share refund matured deposit / debentures, etc. The IEPF Authority keeps the investors aware of these things from time to time by running various programs.

However, despite the efforts by company and IEPF, still huge sum of unclaimed money is kept with IEPF refund authority. We have seen in so many years that many people are not able to claim their shares, debentures, dividends etc. from IEPF because it is not as easy as the process looks. There is a lot of complexity in this especially when you are claiming the money of a person who is no longer in this world.

A lot of people come to our website and say that we are not able to claim because IEPF is not listening to us, IEPF rejects our claim because our form has a loophole and sometimes the signal gets mismatched etc. All such problems come to us, which our experts very easily understand and deal with the whole case.

  • We tell people why their form has been rejected by the IEPF Refund Authority.
  • We show them what to do and what requisite documents you have to attach with the claim form so that you can get your refund easily and you do not have to run around.
  • We at have a team of CAs, Lawyer and Market experts and IEPF Consultants who have been handling these cases for many years.

So what are you waiting for, come to us and claim your IEPF refund, : IEPF Refund – IEPF Zone
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What happens to unclaimed shares?

As soon as you choose MUDS as your shares recovery accomplice, we handle all correspondence, documentation, and procedures for reclaiming unclaimed or dismantled shares. However, some papers, such as the FIR (Missing share certificate), Legal Heir or Succession Certificate, require your physical presence.

You don’t need to worry; we have a legal staff that can handle everything mentioned above and complete the procedure quickly. – Who can opt for recovery of lost shares/unclaimed shares service? Any person or business that has shares, dividends, matured deposits, or application money that has been transferred to IEPF but has not been claimed may file a claim with IEPF.

A legal heir of a dead shareholder may also file an IEPF claim with the IEPF for recovery of lost shares and transfer the interests in their name.

Serial No. Unclaimed Investmen Unclaimed Dividend Unclaimed Bonus Share
1 Unclaimed investments are the investments in different financial forms, and the legal owners are unable to claim for years due to any reason. Usually, the unclaimed investments are found in lapsed insurance policies, unclaimed dividends, mutual funds, split shares, bonuses, etc. When a dividend is not claimed by the legal shareholder, it is declared an unclaimed dividend. According to the Companies Act 1956, a dividend is declared unclaimed when the actual shareholder doesn’t claim his dividend due to any reason. Dividends not claimed are transferred to a separate account, and the actual investor can claim the amount in the next seven years. If in case the amount isn’t claimed even for seven years, it goes to the Investor Education and Protection Fund, managed and controlled by the Ministry of Corporate Affairs. Various companies give benefits to shareholders in the form of additional or bonus shares. A bonus share is declared ‘unclaimed bonus share’ when the shareholder is unable to get the advantage due to any reason including non-transfer or non-delivery of the shares. If the actual shareholder for quite long does not claim the bonus share, the concerned company transfers it to the suspense account.

Thanks Muds Team for their all round support in successful delivery of services. Their approach is Client Centric and they possess the deep understanding of the Subject
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How do I know if I have unclaimed dividends?

Explainer: Steps for shareholder to get unclaimed dividends Nigeria has a high record of unclaimed dividends, which has continually grown over the years. As of December 2021, the unclaimed dividends were about N177 billion, up from the N168 billion in 2020, according to the Securities and Exchange Commission (SEC).

  • According to Investopedia, a dividend is a distribution of earnings by a company to its shareholders in the form of cash or stock reinvestment either quarterly, bi-annually or annually.
  • Over the years, dividend payments by companies have sustained many investors and have also encouraged them to remain in the market, while the issue of unclaimed dividends has also been a big challenge in the stock market.
  • Stockholders have several reasons for not claiming their dividends including lack of information, perceived hassle that comes with the processing of the funds, inattention, forgotten investments, and death.
  • According to the provisions of the Finance Act 2020, the federal government can borrow from the pool of unclaimed dividends of quoted companies that have remained unclaimed for a period of not less than six years from the date of declaring such dividends.
  • Over time, Nigerian regulators and operators in the financial markets have been working together to ensure that unclaimed dividends are reduced considerably, particularly with the advent of technology and digitalised processes.

Below are two simple steps which shareholders can use to claim their dividends. They can also do the E-dividend registration, which automates dividend payment directly to bank accounts upon linkage. The first step is to check if you or your relatives have an unclaimed dividend through the SEC database for non-mandated accounts at www.sec.gov.ng/non-mandated.

  1. It will display all the companies you have shares in and the registrars in charge, as SEC has about 18 registrars managing over 100 listed companies on the Nigerian bourse.
  2. Read also:
  3. Secondly, download and fill your registrar’s form, which is usually beside the company’s name on the website or get the names of the registrar and go to their office for further action and direction.
  4. To fill the form, you will need to provide vital information such as name, Bank Verification Number, account number, and contact information.
  5. A completed and signed copy of the e-dividend mandate form is taken to the bank for signing, after which it is returned to the broker or registrar who will complete the process on your behalf.
  6. While this ensures your subsequent dividends are paid directly into your bank account, you can make enquiries on the status of your unpaid dividend haven done the needful and how to get them back.
  7. At the second Capital Market Committee meeting held in August, Lamido Yuguda, director-general of SEC, said dividends are now distributed electronically and can be paid directly into the investors’ account, adding that if everybody mandates their accounts, there would be few unclaimed dividends in the system.
  8. “The reason why the number may be going higher is that a lot of investors have not mandated their accounts, SEC has invested a lot of resources and embarked on various programmes to ensure people mandate their accounts; this can be done with the registrars and forms can be obtained from the banks too,” he said.

: Explainer: Steps for shareholder to get unclaimed dividends
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Which investors are protected investors?

1. The Committee noted that the growth in the numbers of investors in India was encouraging. The trends revealed that in addition to FIIs and Institutional Investors, small investors were also gradually beginning to regain the confidence in the capital markets that had been shaken consequent to the stock market scams during the past decade.

  1. It is imperative for the healthy growth of the corporate sector that this confidence is maintained.
  2. For this purpose, the Committee feels that not only should corporate systems and processes be credible and transparent, the interests of the investors may be safeguarded in a manner that enables them to exercise their choice in an informed manner while making investment decisions, and also providing them with a fair exit option.2.

The concept of investor protection has to be looked at from different angles taking into account the requirements of various kinds of investors i.e. (i) investors in equity (ii) large institutional investors (iii) Foreign Investors (iv) investors in debentures and (v) small investors/deposit holders etc.

The Committee also noted the initiatives taken by the Central Government for investor education and protection. Some State Governments have also taken initiatives through legislation for protection of depositors. Separate Law for Investor Protection? 3. The question as to whether a separate Act is required for protection of investors was examined.

After detailed discussion, the Committee formed the view that it was essential to ensure safeguarding the interest of investors through proper articulation of corporate governance in a manner that ensures transparency and accountability. The concept of investor protection cannot be treated in isolation from all the corporate processes.

  1. As such a framework exists in the country to deal with criminal offences the requirement is to provide a suitable orientation to corporate law so that the investor, irrespective of size, is recognized as a stakeholder in the corporate processes.
  2. Besides, a separate Act would require special enforcement mechanism with attendant coordination issues.

Therefore, a separate Act for investor protection is not considered necessary. This aspect may be dealt with comprehensively and effectively in the Company Law itself. Role of Regulators 4. The interface between the companies and its stakeholders including investors should be regulated through the legislative framework of the Companies Act and other civil and criminal laws of the country as well as by different regulators such as SEBI, RBI, etc.

as well as institutions such as the Stock Exchanges through their rules of operation. Sometimes, various agencies pursue action in their respective domain without regard to the comprehensive picture. This results in overlap of jurisdiction or regulatory gaps. There is a need to bring about coordination in the role and action of various regulatory agencies to enable effective investor protection.5.

In particular, the capital market regulator, SEBI has a significant role to play in safeguarding the interest of investors. The Committee feels that such a role could be played by the regulator discharging its functions in a rational and objective manner with due regard to the interests, rights and obligations of all the stakeholders.

  1. SEBI has done a commendable job in developing the framework for Indian capital market in its formative stages subsequent to the liberalization process initiated in the 1990s.
  2. However, there is a need for the framework to develop further in a balanced manner keeping in view the Indian context while enabling best international practices.

In doing so, the regulator must examine different aspects of capital market operation and the roles played by different intermediaries as also the interaction amongst them so that the capital market is able to deliver finance to meet requirements of the corporate sector promptly, in a cost effective manner and in keeping with the changing requirements of new business models.

  1. In carrying out this function, it should ensure the credibility of its processes in the eyes of the investors.
  2. Much remains to be done to achieve this objective.
  3. End use of Funds 6.
  4. The Committee discussed the need for regulators to monitor the end use of funds collected from the public.
  5. The Committee felt that this should be the responsibility of the shareholders of the company who should charge company management with the responsibility coupled with adequate authority to ensure prudent and proper use of funds collected from the public.

In doing so however, there is need for transparency so that both the regulators, investigative agencies as well as the investor are able to access appropriate financial information to form an opinion as to the financial conduct and performance of the company.

Therefore, there should be a proper regime of disclosures in the public domain so that various agencies are able to reach their conclusion in a non-intrusive manner. Private companies could devise their own mechanism to the satisfaction of shareholders and lending institutions. Credit Rating 7. The Committee examined the utility of credit rating to enable protection of investor interests.

It was felt that while credit rating could only provide indicative information for the investor to assess the general standing of the company, credit rating was not an infallible assessment of the company. An impression, therefore, should not be created that sole reliance can be placed on credit ratings for investment decisions.

However, credit rating would be a good evaluation mechanism and its wide use would be generally beneficial. There is however, no need to mandate credit rating by law except for companies accepting public deposits. Special Provisions for Depositors Risk cover for depositors 8.1 The Committee deliberated on the need for companies to take risk cover/insurance for depositors.

It was felt that while risk cover may not be possible for equity investors, the insurance option should be explored for deposits with companies. It was felt that while the Banking companies and NBFCs were regulated by the RBI in the interest of the depositors, there was no similar mechanism in the case of deposits with other types of companies.

  1. Depositors, being in the nature of unsecured creditors, also do not get adequate protection under law in the event of liquidation or winding up of the company.
  2. It was also not feasible to develop a separate regulatory mechanism for this modality of mobilizing finance.
  3. However, some protection would be available to the depositors if the companies seeking deposits were also compelled to obtain insurance coverage for deposits.

The Committee felt that this was a mechanism which would compel scrutiny into the credit-worthiness of the companies by the insurance companies in the interest of the depositors and hence recommend the same. Other provisions 8.2 The Committee, during its deliberations discussed various aspects through which protection could be offered to safeguard the interests of depositors and made suggestions while considering the relevant corporate operations.

The Committee, however, felt that the following aspects need to be brought out in a consolidated manner as follows :- Companies accepting public deposits should be required to · appoint independent directors; · appoint audit / remuneration / stakeholders relationship committees; · under take deposit insurance; · undertake credit rating; · create adequate cash reserves being set aside for repayment of deposits as may be prescribed by the rules; · be subjected to close monitoring in respect of implementation of any scheme for repayment of deposits that may be sanctioned by CLB/Tribunal/Court; · be subjected to a stringent disclosure regime; and · be subjected to stringent penalties for irresponsible / fraudulent behaviour by the companies.

Compensation to Investors 9. The Committee also discussed issues relating to compensation to investors. It was felt that the capital market included investment into risk bearing instruments. In such cases, the investor was required to make his own assessment of risk and reward.

  • No compensation could be visualized for such investors whose investments were in risk bearing instruments.
  • Similarly, investment in a fixed return instrument necessitated a careful review of the borrowing entity.
  • Such actions would also be subjected to known or declared risks.
  • Besides, the capital market also provides an opportunity for an investor to exit.

The need therefore, is to ensure proper and healthy market operation so that investors could exercise their exit options in a reasonable and equitable environment. However, there may be situations where such a frame work is distorted through frauds. There may be provisions for compensation in the event of fraud by companies being established in securing funds from investors.

  1. For this purpose lifting of corporate veil may be enabled by the law.
  2. Certain pre-emptive measures may also be incorporated in the law so that the ill-gotten gains acquired through cheating of investors can be accessed and disgorged.
  3. The Committee, therefore, feels that compensation to investors may be payable only in cases of established fraud, through a judicial process from the assets of the company or by lifting the corporate veil, those of the promoters or other beneficiaries of such fraud, accessed through a process of disgorgement.

Investor Grievance Redressal 10. The Committee also took the views of the investor activists into account during its deliberations. The Committee noted that the phenomenon of vanishing companies had undermined investor confidence. Concerns about some of the practices followed by the depository participants to the detriment of small shareholders were also noted.

  1. An effective investor grievance redressal mechanism at the corporate level could ensure protection of the interest of investors through timely interventions.
  2. The Committee recommends that Stakeholders Relationship Committee should be mandatory for a company having a combined shareholder/deposit holder/debenture holder base of 1000 or more.

Consumer courts / Capital Market Ombudsman 11.1 Since shares and securities are also legally deemed to be “goods” under the Consumer Protection Act, 1986, investors should have the option to approach Consumer Courts under the Consumer Protection Act as a forum to redress their complaints.

  • The extent to which the jurisdiction of the Consumer Courts may apply in such cases would have to be defined with regard to the nature of the investment and the entitlements arising from the related transaction.
  • The capacity of the consumer courts to adjudicate on such matters will have to be upgraded through capacity building and training of judicial officers manning such courts.

Training institutes may be set up by Government/Capital market Regulator to provide such training.11.2 With the increase in the number of investors and greater awareness on their part, timely and simplified institutional structure for dispute resolution is desirable so that the investors are not compelled to resort to costly legal proceedings for protection of their rights.

This would be particular relevant for the small investors. In this context, the institution of Ombudsman for Capital Market set up by SEBI should also be strengthened. Investor Education and Protection Fund 12.1 The Government has established an Investor Education and Protection Fund (IEPF) under Sec.205 C of the Companies Act, 1956 under which unclaimed funds on account of dividends, matured deposits, matured debentures, share application money etc.

are transferred through the IEPF to the Government by the company on completion of seven years. The Government is required to utilize this amount through an Investor Education and Protection Fund. For this purpose, the proceeds from the companies are credited to the Consolidated Fund of India through this fund.

This constitutes a cumbersome mechanism and has to be carefully examined in context of the rights of holders of securities and the role of the Government in protecting them while providing resources for investor education.12.2 The Committee recognizes a need for ensuring the expropriated amounts to be credited back to the IEPF in their entirety.

It would be desirable if this is enabled through a direct transfer of unclaimed amounts directly to a separate statutory fund under the control, supervision and management of an Administrator, without routing it through Consolidated Fund of India. The Government should also provide funds to augment the corpus of the fund through grants which may be properly deployed and managed.

  1. Returns from such a Fund should be available to be utilized for a comprehensive programme of education of small investors.
  2. The Fund may then be entrusted with full fledged responsibility to carry out activities for education of investors and protection of their rights.12.3 The Committee also discussed various means by which funds already available under the IEPF could be utilized more effectively.

It noted that the Ministry of Company Affairs, who administer the Fund, had already initiated some schemes in this regard. The Committee recommended that the structure and administration of the Fund should be revamped as above and schemes should be made more comprehensive and their scope expanded to enable flow of correct information to the investors as well as their education in respect of their rights.

Such programmes should have special components for education at school/college level, on line and distance learning, support genuine efforts in the Non-Governmental sector, information collection, research and analysis on matters of small investor concerns, enable capacity building of adjudicators such as Consumer Courts on issues involved in legal redressal of investor complaints.

State expropriation of dividend 13. The mechanism of expropriating certain unclaimed amounts due to the investors for transfer to the IEPF as provided in the present law also raises a basic issue as to the right of the State to expropriate such proceeds when the underlying instrument or security is still in the hands of the investor who has not been able to claim it for any reason.

  1. The Committee remained unconvinced as to how the rights of the claimant holding a particular instrument could be extinguished in such cases.
  2. In view of the Committee, law should enable investors to claim returns on the securities as long as such instruments are held by them.
  3. Court ordered refunds should also be made from the funds available with IEPF.

For this purpose, there should be suitable amendment in the law. It goes without saying that the procedure for making claims also needs to be simplified to facilitate reimbursement of such claims speedily. There was, therefore, a need to review the existing provisions of Section 205 C of the Companies Act and payment of unpaid dividend to the legitimate claimants, irrespective of the lapse of time.

  1. Role of NGOs in Investors education 14.
  2. Many problems relating to investors, particularly, small investors, can be tackled by educating the investors.
  3. Small investors should be encouraged to either invest through Mutual Fund mechanisms, or should take investment decisions only after getting adequate information about risks and rewards.

The investors should also be encouraged to participate in the proceedings at general meetings (either physically or through postal ballot, including by electronic media) in a constructive manner. This requires improving the general awareness of the investors through informal mechanisms.

The help of various NGOs engaged in investor protection activities should also be taken for this purpose. The Committee perceives a positive role for Investors’ Associations / NGOs in this regard which should be supported by both the Government as well as corporate entities. Class Action / Derivative Suits 15.

A situation may arise whereby the interest of the company may need to be protected from the actions of the persons in control of the company. At the same time, the interests of the larger body of investors/shareholders may have to be provided legal avenues to protect the company in their interest.

  1. For this purpose, the law should provide for ‘class action/derivative suits on behalf of depositors/shareholders.
  2. The promoters, managers held guilty of misfeasance / fraud should be asked to pay the legal costs, if proven guilty.
  3. This concept has been considered by the Committee while examining issues relating to minority rights.

The Committee feels that similar principles would also be relevant for investor protection and recommends the same. Disclosures and Investor Protection 16.1 The Committee is of the view that proper and timely disclosures are central to safeguarding investor interests.

The law should ensure a disclosure regime that compels companies to disclose material information on a continuous, timely and equitable basis. Information should be disclosed when it is still relevant to the market. The companies should, therefore, be made to disclose routine information on a periodic basis and price sensitive information on a continuous basis.

Capital market regulator and stock exchanges have a significant role to play in ensuring that such information is accessible by all market participants rather than a few select market players.16.2 Use of modern technology, internet, computers, should be enabled to enhance the efficiency of the disclosure process.

It should be possible to submit and disseminate financial and non-financial information by electronic means.16.3 Law should also provide a regime for enforcement of standards for accounting, audit and non-financial disclosure through setting of such standards and their effective monitoring and enforcement.

At the same time, the Government should ensure the professional independence of standard setters, transparency of their activities and adequate means of disciplining defaulters.16.4 There should be a regime of stringent penalties, both civil and criminal for default in disclosure.
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What are the 3 main objectives of every investment?

Secondary Objectives – Safety, income, and capital gains are the big three objectives of investing. But there are others that should be kept in mind when they choose investments. Tax Minimization: Some investors pursue tax minimization as a factor in their choices.

A highly-paid executive, for example, may seek investments with favorable tax treatment to lessen the overall income tax burden. Contributing to an individual retirement account or any other tax-advantaged retirement plan is a highly effective tax minimization strategy for all of us. Liquidity: Investments such as bonds or bond funds are relatively liquid, meaning they can in many cases be converted into cash quickly and with little risk of loss.

Stocks are less liquid since they can be sold easily but selling at the wrong time can cause a serious loss. Many other investments are illiquid. Real estate or art can be excellent investments unless you are forced to sell them at the wrong time. The safest investments are found in the money market.
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Why is investor education necessary?

It is therefore necessary to educate the end investors so that they better understand the notion of risk and return. Financial education develops retirement savings and promotes long-term investing. Many people lack the level of financial education required to decide how much they should save to prepare for retirement.
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How does investors Group get paid?

Unlimited income potential from an exceptional compensation package – At IG Wealth Management, we foster an entrepreneurial spirit and a total rewards package to accompany it. Advisors are compensated based on new business generated and residual income based on assets under management.
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Does investment fund give guaranteed returns to investors?

Are mutual funds Guaranteed? – Since mutual funds don’t guarantee you the capital protection of fixed returns but it provides you higher returns provided you need to stay long in your investments. Moreover, mutual funds are also tax-efficient as compared to traditional products.

  1. Short-term and long-term gains from mutual funds are taxed in such a manner that it doesn’t eat into your returns.
  2. Mutual funds make most of the sense in the longer term and will support your longer stay in the form of returns that will start amassing constructive returns.This is because of the power of compounding where your returns will be rewarded to you in compensation for risk which you have endured it throughout the times you continued staying in your current mutual fund product.

Over most long periods, your superior returns on your can start beating the prevailing rate of inflation provided you should have managed your investment by diversifying your mutual fund product across different asset classes in your own portfolio. To sum up, mutual funds are safe.

Investors should not worry or become anxious about losing their money while investing in them. Just focus on the right kind of mutual fund to match your investment objective and your mutual fund’s long-term objective. As you know time is a great healer, so the time also makes mutual funds safe and rewarding for you.

So, be patient and invest wisely!
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How do ETFs pay investors?

Exchange-traded funds (ETFs) buy shares of several stocks on behalf of their investors, and when those stocks pay dividends, the money is passed along to the investor. Most ETFs pay out these dividends quarterly on a pro-rata basis. That is, the payments will be based on the number of shares the investor owns.
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What are the steps of investor protection?

Investor Protection Measures by SEBI – Investor protection legislation is implemented under the Section 11(2) of the SEBI Act. The measures are as follows:

Stock Exchange and other securities market business regulation. Registering and regulating the intermediaries of the business like brokers, transfer agents, bankers, trustees, registrars, portfolio managers, investment consultants, merchant bankers, etc. Recording and monitoring the work of custodians, depositors, participants, foreign investors, credit rating agencies, etc. Registering investment schemes like Mutual fund & venture Capital funds, and regulating their functioning. Promotion and controlling of self-regulatory companies. Keeping a check on frauds and unfair trading methods related to the securities market. Observing and regulating major transactions and take-over of the companies. Carry out investor awareness and education programme. Train the intermediaries of the business. Inspecting and auditing the security exchanges (SEs) and intermediaries. Assessment of fees and other charges.

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Who maintains investor education and protection fund?

Investor Education And Protection Fund Authority Investor Education and Protection Fund Authority was established by Government of India on 7 th September, 2016 for administration of Investor Education and Protection Fund under the provisions of section 125 of the Companies Act, 2013. Objectives The Authority is entrusted with the responsibility of administration of the Investor Education Protection Fund (IEPF) Make refunds of shares, unclaimed dividends, matured deposits/debentures etc. to investors Promote awareness among investors For more information visit Investor Education and Protection Fund Authority
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What is investor education?

Why Investor Education | JamaPunji Investor education focuses on issues relevant to the education and information needs of individuals who participate, or are considering participating, in the financial markets. In addition, investor education can also help investors better assess the relevance and suitability of investment advice.

Enable investors to understand and manage risk Expanding outreach of financial services and products Participation in financial markets with esteemed confidence Reduce investors vulnerability to fraudulent schemes Informed financial and retirement planning Protecting investors by educating them on their rights

Regulators across the globe have adopted investor education as a key strategy to enhance investor protection, promote investor confidence and foster investor engagement in financial planning and decision-making. The need for investor education came under the spot light after global financial crisis in 2008 as investors were exposed to complex products posing multiple risks.

  1. A cross jurisdiction study was conducted by the SECP in 2012 to see standing of Pakistan vis-a-vis comparable countries.
  2. The study concluded that Pakistan lagged in a number of indicators clearly pointing to the fact that greater emphasis needs to be put on financial literacy, saving and investment culture, and market outreach.

Pakistan’s capital market, non-bank financial and insurance sectors have immense potential; however, statistics clearly indicate low level of investor penetration due to lack of investor confidence and awareness about non-banking financial sector. Main theme of the Investor Education Program will be financial planning, budgeting, market setup and operations, product features and risks, rights and obligations of user and providers of financial products, and dispute resolution.

It is expected that the program, apart from creating awareness, would help the investors to take prudent measures before entering into a contractual agreement with a financial services provider, educate investors on strategies to mitigate risks associated with various investment products, engender investor confidence, and lead to an effective investor protection regime.

The program covers capital market, insurance sector, and NBFC sector including the investment banks, asset management companies, unit trusts and private pension. In addition to these regulated sectors, information would be provided on company registration and entrepreneurship.

  • Under the program, education would be imparted through digital means – web portal, SMS and social media – and physical interaction via seminars and investor days.
  • Web portal is envisioned to play a pivotal role in the overall IEP as it would act as a single point learning resource for existing and potential users of financial products offered in capital market, mutual fund, pension fund and insurance industry and company registration.

Following are the primary objectives of a well-structured and efficiently implemented Investor Education Program:

Protecting investors by educating them on their rights and responsibilities Empowering with knowledge to evaluate different financial products and make informed decisions Enable investors to understand and manage risk Reduce investors vulnerability to fraudulent schemes Expanding outreach of financial services and products Informed financial and retirement planning Participation in financial markets with esteemed confidence

Investor Web portal is envisioned to play a pivotal role in the overall IEP as it would act as a single point learning resource for existing and potential users of financial products offered in capital market, mutual fund, pension fund, insurance industry and company registration. Apart from that, education would be imparted through:

Media (electronic, print and social) Educational Material in the form of guides, publications, booklets and articles, etc. Seminars

The seminars will be conducted in all 4 provinces of Pakistan to expand outreach of the program as far as possible. We have allocated the three stock exchanges (Karachi, Lahore and Islamabad) in various geographical areas of Pakistan where they will be responsible for conducting seminars.

The three stock exchanges will only be responsible for those areas which are allotted to them, while all other stakeholders will provide assistance throughout all areas. As per the program we plan on holding one seminar every week across every region which would be 3 seminars per week in total. Material for the seminars has been drafted in accordance with 3 different difficulty levels (basic, intermediate and advanced).

The level of difficulty will depend on the segment of population being targeted as well as the region in which the seminar is being conducted. To effectively implement the program we will use a large pool of Resource Persons that will support us in conducting seminars, through acting as presenters.

The Resource persons have been identified across various cities and include members or officials of all stakeholders identified above, members of various professional associations (Institute of Charted Accountants, Cost and Management Accountants, CFA Institute, etc.) and personnel from various corporates.

For adequate outreach, we have created linkages with various institutions within Pakistan to provide us with physical, financial, logistical assistance as well as human resource. The program, in its first stage is planned for 3 years, after which we will make modifications to the program based on our experience.
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Why is investor education necessary?

It is therefore necessary to educate the end investors so that they better understand the notion of risk and return. Financial education develops retirement savings and promotes long-term investing. Many people lack the level of financial education required to decide how much they should save to prepare for retirement.
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What are the features of investor protection fund?

The Investors’ Protection Fund may provide compensation against a genuine and bonafide claim made by any client, who has either not received the securities bought from a trading member for which the payment has been made by such client to the trading member thereagainst or has not received the payment for the
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