IEPFA Committee Proposes Simplified Documentation For Low-Value Claims To Enhance Ease Of Living

(MENAFN- IANS) New Delhi, Sep 6 (IANS) A committee formed by the Investor Education and Protection Fund Authority (IEPFA) submitted its proposal to simplify documentation for low-value claims to enhance ease of living, the government informed on Saturday.

This initiative is expected to significantly reduce timelines, improve transparency, and provide hassle-free services to investors, an official statement said.

IEPFA, under the Ministry of Corporate Affairs, had formed the Committee to review existing procedures and recommend reforms for simplifying documentation in low-value claim cases

The Committee comprised representatives from the Ministry of Corporate Affairs (MCA), the Investor Education and Protection Fund Authority, the Securities and Exchange Board of India (SEBI) and the Institute of Chartered Accountants of India (ICAI).

Further members from the Institute of Cost Accountants of India (ICMAI), the Institute of Company Secretaries of India (ICSI), the Federation of Indian Chambers of Commerce and Industry (FICCI), the PHD Chamber of Commerce and Industry (PHDCCI), the Confederation of Indian Industry (CII), and the Registrar Association of India (RAIN) were also part of the committee.

The suggestions, once adopted by IEPFA, would apply to claims valued up to Rs 5 lakh (physical securities), Rs 15 lakh (demat securities), and dividends up to Rs 10,000, as suggested by the committee.

The Investor Education and Protection Fund Authority (IEPFA), since 2016, has been managing the Investor Education and Protection Fund, which focuses on safeguarding investor interests by facilitating the refund of shares, unclaimed dividends, and matured deposits or debentures.

Through its initiatives, the IEPFA aims to ensure transparency, protect investors' rights, and promote financial literacy across the country. IEPFA recently launched a national drive aimed at empowering shareholders by creating awareness about unclaimed dividends held by companies and guiding them through the process of updating their KYC and nomination details to reclaim their rightful dividends.

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