Lok Sabha Question No. 1209 (UNSTARRED), answered on 2020-02-10
Subject: Performance of IEPF
Ministry: CORPORATE AFFAIRS
Asked by: Raja Amareshwara Naik, Sukanta Majumdar, Sangeeta Kumari Singh Deo, Bhola Singh, Vinod Kumar Sonkar, Jayanta Kumar Roy

## GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA

UNSTARRED QUESTION NO. 1209 ANSWERED ON MONDAY THE 10 th  FEBRUARY, 2020 MAGHA 21, 1941 (SAKA)

## PERFORMANCE OF IEPF

QUESTION

1209. SHRI RAJA AMARESHWARA NAIK:

DR. SUKANTA MAJUMDAR:

SHRI MATI SANGEETA KUMARI SINGH DEO:

SHRI BHOLA SINGH:

SHRI VINOD KUMAR SONKAR:

DR. JAYANTA KUMAR ROY:

Will the Minister of CORPORATE AFFAIRS be pleased to state:

कारपोरेट कार्य मंत्री

- (a) Whether the Government has set up the Investor Education and Protection Fund (IEPF) to distribute amount to eligible depositors who have suffered losses due to wrongful act by companies and if so, the details thereof;
- (b) the details of funds allocated to Non-Government    Organisations  (NGOs) and physical performance of IEPF during the last three  years;
- (c) the details of complaints regarding the misappropriation of funds   by NGOs and action taken against them;
- (d) whether the Government has launched an Investor Helpline to   provide a mechanism  for  redressal  of  Investor's  grievances  and  if  so,  the  details thereof including number of complaints received, resolved and pending; and
- (e) the steps being taken by the Government to protect the   interest of  small investors?

## ANSWER

THE MINISTER OF STATE FOR FINANCE AND CORPORATE AFFAIRS                                           (SHRI ANURAG SINGH THAKUR) वित्त एिं कारपोरेट कार्य मंत्रालर् में राज्र् मंत्री                                                                        (श्री अनुराग स ंह ठाक ु र)

(a): The Investor Education and Protection Fund (IEPF) is to be inter alia utilised for  distribution  of  disgorged  amount  among  eligible and  identifiable  applicants who have suffered losses due to wrong actions by any person, in accordance with the orders made by the Court which had ordered disgorgement. Till 05.02.2020, no such order for distribution of any amount has been received.

(b)&(c): During the last three years no funds have been allocated from IEPF to NonGovernment Organisations (NGOs) and hence no complaints regarding misappropriation of funds by NGOs have been received in the last three years.  The IEPF is inter-alia utilised for settlement of claims filed by Claimants and promotion of  investor  education,  awareness  and  promotion.  During  the  last  three  years performance of the IEPF is as under:-

|   S. No. | Particulars                                              | 2016-17   | 2017-18   | 2018-19   |
|----------|----------------------------------------------------------|-----------|-----------|-----------|
|        1 | Number of Claims disposed                                | 18        | 623       | 1,037     |
|        2 | Amount Refunded to claimants (Rs. in lakh)               | 47.4      | 72.9      | 177.7     |
|        3 | Number of Shares Refunded to claimants                   | Nil       | Nil       | 5,00,771  |
|        4 | Number of Investor Awareness Programmes (IAPs) conducted | 2,171     | 5,876     | 27,639    |

(d):  The  IEPF  Authority  has  a  toll  free  helpline  to  provide  the  status  of  refund applications  to  the  Claimants.  The  number  also  provides  a  mechanism  for  the companies to provide resolution with reference to the various forms relating to the IEPF filed by them. An Interactive Voice Response System (IVRS) has also put in  place  which  gives  information  about  the  status  of  the  claim  filed  by  the Claimant.  During the period from September, 2019 to January. 2020, 16,736 calls were answered through the helpline.

(e):  The  IEPF  Authority  organizes  Investor  Awareness  Programmes  (IAPs),  for creating awareness amongst the Investors as a part of its mandate. During the last 3 years, 35686 such programmes have been organised in rural and urban areas of the country. Apart from this, awareness creating messages are disseminated from time to time through print and electronic media.

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