IEPFA (Syllabus: GS Paper 3 – Economy)

Context: The finance ministry is currently contemplating recent amendments to the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, to enable public sector banks (PSBs) to transfer shares to the Investor Education and Protection Fund (IEPF) if dividends from those shares remain unclaimed by investors for seven consecutive years.

Investor Education and Protection Fund Authority (IEPFA)

• About: 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 and to promote awareness among investors.
• Established: In 2016 under the Companies Act, 2013.
• It is a special organization set up by the government because of a law called the Companies Act 2013.
• Nodal Ministry: Ministry of Corporate Affairs
• It takes care of a fund that's made to help and educate people who invest money. This fund is called the Investor Education and Protection Fund.
• Objective: To spread knowledge and awareness among investors, and to keep them safe from any problems that might come up.

Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970

• About: The Act focuses on acquiring and transferring specific banking companies, considering factors like resources, coverage, and size, to regulate economic growth and align with national policy objectives.
• Purpose of the Amendment: It aims to control economic fluctuations and effectively cater to the evolving needs of economic development in alignment with national policies and objectives.
• Scope: The Act covers the acquisition and transfer of certain banking companies, emphasizing their significance in economic development and national objectives.
• Implementation: Except for section 21, the provisions of this Act were enforced on July 19, 1969, to initiate the regulatory measures outlined within it.