Move to Help Investors Settle Claims Faster: IEPFA to Get New Chief Executive Soon

New Delhi: The corporate affairs ministry is set to launch a much-awaited integrated portal this month aimed at expediting the transfer of old unclaimed shares and dividends to investors. This move comes after nearly two years of planning, preparation, and testing, according to people familiar with the details.

The upcoming portal will empower investors to check and submit claims directly through it. Shares, dividends, and matured debentures that remain unclaimed for seven years are transferred by companies to the Investor Education and Protection Fund Authority (IEPFA) under the corporate affairs ministry.

In addition to the new portal, the Appointments Committee of the Cabinet, led by the Prime Minister, has also approved the creation of a chief executive position for the IEPFA. Currently, the authority is headed by Anita Shah Akella, a joint secretary in the ministry, who manages these responsibilities alongside her other duties.

These latest initiatives are part of the government’s broader efforts to reduce delays in the transfer of old unclaimed shares and dividends. By leveraging technology, reforming processes as necessary, and strengthening personnel at the IEPFA, the administration seeks to enhance operational efficiency.

The new CEO position may be filled by someone from the private sector or another branch of the government. This individual will need to work under the ministry, as one insider noted, “Given that senior officers from the ministry already have their hands full with their usual workload, the government recognized the necessity of having a dedicated CEO for the IEPFA.

Portal Features

The portal, which was first announced by Finance and Corporate Affairs Minister Nirmala Sitharaman during her February 2023 budget speech, is expected to integrate data within the MCA-21 mechanism for corporate filings, depositories, and the public finance management system.

With this new development, investors will be able to submit claims easily, while the application programming interface will help reduce duplicate processes. Additionally, the entire refund process will be expedited, and the potential for malpractices will be minimized by limiting human interactions.