# Investor Education and Protection Fund (IEPF) — Utilization, Claims & Authority
Statutory Anchor: Section 125 of the Companies Act, 2013 (read with IEPF Authority (Accounting, Audit, Transfer and Refund) Rules, 2016).
## 1. Additional Credits to the IEPF (Rule 3 & related provisions)
Apart from the principal credits (unpaid dividend, matured deposits, etc.), the following also flow into the Fund:
- All sums received by the Authority from such other sources as the Central Government may decide.
- All income earned by the Authority in any year.
- All shares held by the Authority under Section 90 of the Act, along with all resulting benefits without any restrictions.
- Amounts payable under Section 10B(3) of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 and Section 10B of the 1980 Act.
- All other sums collected by the Authority under the Act.
- Shares held by the Authority under the proviso to Section 90(a) and resultant benefits, without restriction.
Special Rule: In case of term deposits and debentures of companies, due unpaid or unclaimed interest is transferred to the Fund along with the matured amount of such deposits/debentures.
## 2. Utilization of the Fund — Section 125(3)
The Fund shall be used for:
1. Refund of unclaimed dividends, matured deposits, matured debentures, application money due for refund and interest thereon.
2. Promotion of investors' education, awareness and protection.
3. Distribution of disgorged amounts among eligible and identifiable applicants/shareholders/debenture-holders/depositors who suffered losses due to wrong actions, per Court orders directing disgorgement.
4. Reimbursement of legal expenses incurred in pursuing class action suits under Sections 37 and 245 by members, debenture-holders or depositors, as sanctioned by the Tribunal.
5. Any other purpose incidental thereto under the IEPF Rules, 2016.
## 3. Claim Procedure — Section 125(2) read with 125(5)
Any person entitled to amounts credited to the Fund may apply to the IEPF Authority for payment of the money claimed. The claim is made directly to the Authority — not to the company.
## 4. The IEPF Authority — Governance Framework
### (a) Constitution
An Authority is constituted to administer the Fund and maintain its accounts and records.
### (b) Composition
| Position | Detail |
|---|---|
| Chairperson (ex-officio) | Secretary, Ministry of Corporate Affairs |
| Members | 6 members (maximum 7) |
| Convenor | Chief Executive Officer |
### (c) Central Government Support
The Central Government provides offices, officers, employees and other resources to the Authority per the Rules.
### (d) Consultation with C&AG
Accounts and records of the Fund are maintained in the form prescribed after consultation with the Comptroller and Auditor-General of India.
### (e) Spending Power
The Authority is competent to spend money out of the Fund only for purposes specified in Section 125(3).
### (f) Audit
- Accounts audited by C&AG at intervals specified by C&AG.
- Audited accounts + audit report forwarded annually to the Central Government.
### (g) Annual Report
- Authority prepares an annual report in prescribed form and time, covering its activities for the financial year.
- Forwarded to the Central Government.
- Central Government lays the annual report and C&AG audit report before each House of Parliament.
## 5. Memory Aid — The IEPF Reporting Chain
`Authority → Accounts audited by C&AG → Sent to Central Government → Laid before both Houses of Parliament`