Rules 10 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.
After rules 1 to 9 constitute the Authority, rules 10 to 14 say what it does, how it meets and decides, how a member with an interest must behave, why vacancies do not invalidate its work and what protection its officers have. Schedules I and II are printed within the same range. This article 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. For IEPF matters, see our compliance advisory service.
The Authority administers the Fund for Investor Education and Protection; the Chief Executive Officer manages its affairs under the Chairperson's superintendence. The Authority and its Committees meet at least once a quarter, with at least four meetings a year and not more than one hundred and twenty days between meetings. More than fifty per cent of appointed members form the quorum. A member with a pecuniary interest must disclose it and not take part. Vacancies and defects do not invalidate proceedings, and good-faith action is protected.
Rule 10: functions
| Sub-rule | Provision |
|---|---|
| 10(1) | Subject to the Act, the Authority has the duty to administer the Fund for Investor Education and Protection |
| 10(2) | General management of the affairs of the Authority vests in the Chief Executive Officer, who may exercise powers authorised by the Authority |
| 10(3) | The CEO functions under the superintendence and direction of the Chairperson |
| 10(4)(a) | The Authority may constitute permanent Committees for overseeing its functions |
| 10(4)(b) | Each Committee has two Members, the CEO and the concerned functional head, who is the secretary of the Committee; it is headed by an ex-officio member |
| 10(4)(c) | A Committee may invite experts to assist it on a specific issue |
| 10(4)(d) | The Authority may outsource, if required, work related to Funds and Shares Management |
| 10(4)(e) | The broad functional divisions are as per Schedule II |
Schedule II: the six functional divisions
| Division | What it covers (in summary) |
|---|---|
| (1) Administration | Establishing and running administrative functions for the objects of the Fund; matters of the Authority and its committees |
| (2) Investment and Funds Management | Maintaining the funds to the credit of the Fund and investing them in an interest-bearing account of any nationalised bank; opening the Authority's depository account and moving securities to and from investors on settlement of claims |
| (3) Claims and Settlement | Refunds to eligible investors on claims under section 125(3)(a) and the rules; distribution of disgorged amounts under court, Tribunal or Authority orders, limited to the amount disgorged in that order |
| (4) Legal and Enforcement | Initiating cases against non-compliant companies or persons; handling disputes arising from claims; reimbursing legal expenses of class action suits under sections 37 and 245 as sanctioned by the Tribunal |
| (5) Investor Education and Protection | Registering bodies engaged in investor education; sanctioning and monitoring grants; collaborating with institutions; running awareness programmes; setting up infrastructure; publishing information; advising the Central Government; sponsoring studies for capital market development |
| (6) Finance, Accounts and Audit | Accounts of inflow and outflow; reconciliation of investors' accounts; accounting reports, audit work and annual report; returns to the Central Government; the Authority's budget; accounting for investors' claims, funds and securities |
A seventh item lets the Chairperson re-allocate functions, merge or sub-divide divisions as administratively required. Our article on claiming shares back from the IEPF shows how the claims division works in practice.
Rule 11: meetings
- Time and procedure. The Authority and its Committees meet at such times and places as they consider necessary and determine their own procedure. A meeting held elsewhere than New Delhi needs the Chairperson's approval, with reasons.
- Frequency (11(4)). At least once in a quarter, and at least four meetings in a financial year, with not more than one hundred and twenty days between two consecutive meetings.
- Chair. The Chairperson presides; if unable to attend, another Member chosen by the Members present presides.
- Decisions. A difference of opinion is settled by the majority.
- Quorum. More than fifty per cent of appointed Members for the Authority; two members for a Committee.
- Expenses. A non-official member or special invitee is reimbursed the actual expenditure for attending, up to the maximum applicable to a Senior Administrative Grade officer of the Government of India.
Rule 12: members with an interest
A member who has any pecuniary interest, direct or indirect, in a matter before the Authority or a Committee must, as soon as possible after the circumstances come to his knowledge, disclose the nature of his interest at the meeting. The disclosure is recorded in the proceedings, and the member shall not take part in any deliberation or decision on that matter.
Rule 13: vacancies and defects
No act or proceeding of the Authority or its Committees is invalid merely because of: (a) any vacancy or defect in the constitution; (b) any defect in the appointment of a person acting as a member; or (c) any laches in procedure not affecting the merits of the case.
Rule 14: protection of good-faith action
No suit, prosecution or other legal proceedings lie against the Central Government, the Authority, or any officer of the Central Government or any member, officer or other employee of the Authority for anything done or intended to be done in good faith under the rules.
Schedule I: officers and employees
Rule 9 refers to Schedule I, which is printed in the same range as rule 14:
| S. No. | Designation | Pay scale | Number of posts |
|---|---|---|---|
| 1 | General Manager | PB-4 + GP Rs. 8700 | 1 |
| 2 | Assistant General Manager | PB-3 + GP Rs. 5400 | 1 |
| 3 | Senior Accounts Officer | PB-3 + GP Rs. 5400 | 1 |
| 4 | Assistant Accounts Officer | PB-2 + GP Rs. 4800 | 2 |
A worked example
The IEPF Authority met on 5 January. Under rule 11(4), the next meeting must follow within one hundred and twenty days, and at least four meetings must be held in the financial year. At a later meeting, a member realises that his family firm has a pecuniary interest in an agenda item on outsourcing work related to Funds and Shares Management. He discloses the interest, the minutes record it and he takes no part in the deliberation or decision. A member's seat has been vacant for two months; rule 13 says the Authority's decisions are not invalid for that reason. Quorum for the Authority is more than fifty per cent of appointed Members.
For the people who sit on the Authority, see our article on rules 1 to 9; for the Fund's accounts, see rules 1 to 4 of the IEPF Accounting Rules. The Act's provision is in sections 124 and 125 of the Companies Act, 2013.
Need help with IEPF compliance?
Companies deal with the Authority at several points: the transfer of unpaid dividends and shares, and the verification of claims. Our compliance advisory team can map the process for your company and keep the records ready.
Key takeaways
- The Authority administers the Fund; the CEO manages its affairs under the Chairperson.
- Committees have two Members, the CEO and a functional head as secretary, headed by an ex-officio member.
- Meetings are at least quarterly, at least four a year, not more than one hundred and twenty days apart; quorum is more than fifty per cent of appointed Members.
- A member with a pecuniary interest discloses it and stays out of the decision.
- Vacancies and defects do not invalidate proceedings; good-faith action is protected.
Read next
- Rules 1-9 of the IEPF Authority Rules: composition, Chairperson, CEO and members
- Rules 1-4 of the IEPF Accounting Rules
- Sections 124 and 125 of the Companies Act, 2013: IEPF
- How to claim shares back from the IEPF in IEPF-5
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.