Finance Minister launched “Central Scrutiny Centre” and “IEPFA App”

What is the news?

The Finance Minister has virtually launched the Central Scrutiny Centre(CSC). She also launched the mobile app for the Investor Education and Protection Fund Authority(IEPFA).

 About Central Scrutiny Centre:

• Central Scrutiny Centre is an initiative of the Ministry of Corporate Affairs. It aims to scrutinize the forms filled by companies under straight-through processes.
• Objective: The objective is to ensure that data quality is free from flaws.
• Features of the Central Scrutiny Centre:
  CSC will primarily do the following things,
  • Firstly, it will Scrutinize the filings made by users under straight-through processes
  • Secondly, the CSC will identify data quality issues and irregularities.
  • Further, It will communicate the data quality issues to the concerned Registrar of Companies. Then the corrective steps can be taken to restore the authenticity and correctness of data.

About the Investor Education and Protection Fund Authority(IEPFA) App:

• It is a mobile app. It aims to achieve the goal of financial literacy, spreading awareness and education among investors.
• Features:
  • The IEPFA App will have the facility of tracking the status and progress of the IEPF claim and refund process.
  • The app will also provide a mechanism for investors and common citizens to report on suspected fraudulent schemes.

Investor Education and Protection Fund (IEPF):

• IEPF has been established under the Companies Act,1956 by the Companies (Amendment) Act,1999.
• Purpose: IEP Fund has been established for the promotion of investors awareness and protection of the interests of investors.
• If the amounts such as dividends, applications money, matured deposits, etc. remained unpaid or unclaimed for a period of 7 years, then they will be transferred to the IEPF.
• Credited to: The amounts credited to IEPF are maintained under the consolidated fund of India (Article 266 of the Constitution).
• Utilisation of Fund:
  • The fund is utilized for promoting investor awareness and protection of investor interests.
  • Based on the order of the court, the Fund can also be utilized for distribution of any disgorged amount among eligible applicants who suffered losses due to wrong actions by any person.

IEPF Authority:

• IEPF has been set up under the Ministry of Corporate Affairs as a statutory body under the Companies Act 2013.
• Aim: It aims to administer the Investor Education and Protection Fund.
• Chairperson: Secretary Ministry of Corporate Affairs is the Chairperson of the authority.

Source: Business Today