Question

Which of the following amounts shall be credited to Investor Education and Protection Fund, if they remain unpaid/unclaimed for seven years from the date they become due?

• A. Matured debentures of a company
• B. Tax arrears
• C. Proceeds of sale property
• D. Provision for doubtful debts

Answer 1

The correct option is A Matured debentures of a company

Investor Education and Protection Fund (IEPF) is for promotion of investors’ awareness and protection of the interests of investors.

Investor Education and Protection Fund (IEPF) has been set-up under Section 205C of the Companies Act, 1956 by way of the Companies (Amendment) Act, 1999. As per the Act, the following amounts which have remained unclaimed and unpaid for a period of seven years from the date they became due for payment shall be credited to the IEPF:-

(a) Unpaid dividend accounts of the companies;

(b) The application moneys received and due for refund;

(c) Matured deposits;

(d) The interest accrued in the amounts referred to in clauses (a) to (d);

(e) matured debentures;

(f) Grants and donations by the Central Govt., State Govt., companies or any other institutions ;

(g) The interest or other income received out of the investments made from the fund.