Reliance Industries has paid Rs 25.82 crore to the department of company affairs (DCA) under section 205 (c) of the Companies Act towards the Investor Protection Fund.
The central government had notified the establishment of the Investor Education and Protection Fund under section 205 (C) of the Companies Act, with effect from October 1, 2001.
However, companies had sought clarifications on certain issues and it is now that the companies have started complying with the fund requirement.
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Under the provision, the companies have to contribute towards the fund from the amounts in unpaid dividend accounts of companies; application moneys received by companies for allotment of securities and due for refund; matured deposits with companies and interest accrued on amounts in the above accounts.
The amount referred to above are such that have remained unclaimed and unpaid for seven years from the date they became due for payment.
The Centre has also notified the rules for operationalising the fund under the Investor Education and Protection (Awareness and Protection of Investors) Rules, 2001.
The rules provide for the modalities as to how the companies will credit their unclaimed amounts to the fund, furnish details to the Registrar of Companies concerned, the manner of accounting of the money received and more such matters.