On 7 September, the government introduced the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules 2016. The salient features of the rules are as follows:
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- They define “authority”, “chairperson”, “funds”, “investors”, etc.
- They prescribe the list of amounts to be credited to a fund and its accounting treatment.
- They list the registers and books of accounts to be maintained by the Investor Education and Protection Fund (IEPF), and prescribe the format for the statement of amount credited to an IEPF; statement of unclaimed and unpaid amounts; and statement of shares unclaimed and unpaid dividends not transferred to an IEPF.
Further to this a sub-rule introduced to the IEPF rules states that the authority shall be a body corporate with perpetual succession, common seal power to acquire and dispose of property, and the capacity to sue or to be sued in its name.
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