Rules explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
These rules give the Investor Education and Protection Fund Authority its shape: who chairs it, who sits on it, how long they serve and how they can be removed. This article covers rules 1 to 9, including rule 3A. It is as amended up to G.S.R. 853(E) dated 5 September 2016 per the MCA e-book. Later amendments should be checked before you rely on it. If you are dealing with unclaimed dividends or shares, see our compliance advisory service.
The Authority consists of a Chairperson, six members and a Chief Executive Officer (CEO, who is its convenor). The Secretary, Ministry of Corporate Affairs is the ex-officio Chairperson. Two members are ex-officio nominees of the Reserve Bank of India and SEBI and four are experts with at least fifteen years' experience, serving three years (or until age sixty-five, whichever is earlier), for not more than three terms. Rule 3A makes the Authority a body corporate.
Rule 1: short title, extent and commencement
The rules may be called the Investor Education and Protection Fund Authority (Appointment of Chairperson and Members, holding of meetings and provision for offices and officers) Rules, 2016. They were notified on 13 January 2016 as G.S.R. 26(E) under section 125(5), (6) and (7) read with section 469, and came into force on the date of publication.
Rule 2: definitions
| Term | Meaning |
|---|---|
| "Authority" | The Investor Education and Protection Fund Authority constituted under section 125(5) |
| "Chairperson" | The chairperson of the Authority appointed under rule 5 |
| "Company" | A company under section 2(20), including a "corresponding new bank" under the Banking Companies (Acquisition and Transfer of Undertakings) Acts of 1970 and 1980 as printed |
| "Fund" | The Investor Education and Protection Fund established under section 125 |
| "Investor" | A person who has committed money in shares, debentures, bonds or deposits under a scheme or plan of a company registered under the Act |
| "Member" | A member of the Authority appointed under section 125(6) |
The Act side is in our post on sections 124 and 125 of the Companies Act, 2013.
Rules 3 and 3A: the Authority
- Rule 3. The Authority is established on such date as the Central Government notifies.
- Rule 3A (inserted by G.S.R. 853(E) of 5 September 2016). The Authority is a body corporate by the name aforesaid, with perpetual succession and a common seal, with power to acquire, hold and dispose of movable and immovable property and to contract, and it sues and is sued by that name.
Rule 4: composition
The Authority consists of: (a) the Chairperson, (b) six members and (c) the Chief Executive Officer. The CEO is the convenor.
Rules 5 and 6: Chairperson and CEO
- Rule 5. The Secretary, Ministry of Corporate Affairs is the ex-officio Chairperson.
- Rule 6. The Central Government appoints a person as the Chief Executive Officer.
Rule 7: members
The Central Government may appoint as members:
- a person not below the rank of Executive Director nominated by the Reserve Bank of India as ex-officio member;
- a person not below the rank of Executive Director nominated by the Securities and Exchange Board of India as ex-officio member; and
- four persons with special knowledge and experience of not less than fifteen years in finance, management, accountancy or law, one person from each discipline, whose knowledge or professional experience is, in the Central Government's opinion, useful to the Authority.
Rule 8: term, resignation and removal
| Sub-rule | Provision |
|---|---|
| 8(1) | Members under rule 7(iii) hold office for three years and are eligible for reappointment. No member holds office for more than three terms, and a member is eligible for reappointment only after a cooling off period of three years after his term |
| 8(2) | Despite sub-rule (1), the Central Government may terminate the services of a rule 7(iii) member at any time by not less than three months' written notice, for reasons in sub-rule (4); the member may relinquish office by not less than three months' written notice to the Central Government |
| 8(3) | Rule 7(iii) members hold office for three years or until the age of 65 years, whichever is earlier |
| 8(4) | The Central Government shall remove a member who (a) is or has been adjudicated insolvent; (b) is of unsound mind and so declared by a competent court; (c) has been convicted of an offence which, in the Government's opinion, involves moral turpitude; or (d) has so abused his position, in the Government's opinion, as to make his continuation detrimental to the public interest |
| 8(4) proviso | No member is removed unless given a reasonable opportunity of being heard |
Rule 8(1) and (3) both speak of three years; rule 8(3) adds the age limit of sixty-five years, which ends the term earlier if reached first.
Rule 9: officers and employees
The Authority has such number of officers and other employees for secretarial assistance and day-to-day functions as are set out in Schedule I to the rules. Schedule I is printed with rule 14; see our article on rules 10 to 14.
The Authority at a glance
| Seat | Who | Source |
|---|---|---|
| Chairperson | Secretary, Ministry of Corporate Affairs (ex-officio) | Rule 5 |
| Member | RBI nominee, not below Executive Director | Rule 7(i) |
| Member | SEBI nominee, not below Executive Director | Rule 7(ii) |
| Four members | One each from finance, management, accountancy and law, with fifteen years or more | Rule 7(iii) |
| Chief Executive Officer | Appointed by the Central Government; convenor | Rules 4 and 6 |
A worked example
Dr. Aarti Sen, an accountant with twenty years' experience, is appointed under rule 7(iii) at age fifty-nine. She holds office for three years. Because rule 8(3) also stops the term at sixty-five, it would end at sixty-five if that came first. If reappointed, she may serve at most three terms, and after a term she must wait three years to be reappointed. If she were convicted of an offence involving moral turpitude in the Government's opinion, the Government must remove her after giving her a reasonable opportunity of being heard.
For how the Authority's money works, see our article on rules 1 to 4 of the IEPF Accounting Rules, and for a general explanation, see what the IEPF is.
Need help with IEPF matters?
Investors and companies meet the Authority when unclaimed dividends and shares are transferred or claimed. Our compliance advisory team can explain how the Authority works and prepare the company-side records and filings.
Key takeaways
- The Authority has a Chairperson, six members and a CEO, who is the convenor.
- The Secretary, Ministry of Corporate Affairs is the ex-officio Chairperson.
- Two members are RBI and SEBI nominees; four are experts with at least fifteen years, one each from finance, management, accountancy and law.
- Expert members serve three years or until sixty-five, up to three terms, with a three-year cooling off.
- Rule 3A makes the Authority a body corporate with perpetual succession and a common seal.
Read next
- Rules 10-14 of the IEPF Authority Rules: functions, meetings and protection
- Rules 1-4 of the IEPF Accounting Rules: definitions, the Fund and accounts
- Sections 124 and 125 of the Companies Act, 2013: IEPF
- The Investor Education and Protection Fund explained
Disclaimer: Based on the Companies Act, 2013 rules (and the Companies (Auditor's Report) Order, 2020) named above as consolidated in the MCA e-book (consulted on 3 October 2026), with the later notifications the article names. Later amendments, fees, forms and the Companies Act, 2013 provisions referred to should be checked. This article is general information, not legal advice; check the official text before acting.