India 2018

270 India 2018
records and conducting of audit thereof subject to the specified threshold limits.
The cost records help the compilation of cost database for the own use of such
companies for the purpose of cost management, pricing and other related
functions. These records are also used by various government agencies like
price-fixation authorities, regulatory bodies, WTO implementation and
monitoring agencies, Competition Commission of India (CCI), Serious Fraud
Investigation Office (SFIO), revenue authorities, and other institutions. The
Ministry analyses the cost audit reports and monitors compliance to the Act/
Rules by the specified companies.
Investor Education and Protection Fund
The Companies Act provides for establishment of Investor Education and
Protection Fund (IEPF) for promoting Investor Awareness and protecting their
interests. The amount of dividend, matured deposits, matured debentures,
application money, etc., which remained unpaid/unclaimed for a period of
seven years from the date they first become due for payment, are transferred to
IEPF. Section 205 C of the Companies Act, 1956 did not allow the refund of
such amount to individual once it is transferred to IEPF. Section 125 of
Companies Act, 2013 allows refund of unpaid amounts transferred to IEPF.
Such refunds are to be made by the Investor Education and Protection Fund
Authority under Section 125 of the Act.
IEPF Authority was made functional from September, 2016. The IEPF
Authority is also entrusted with the responsibilities of carrying out investor
awareness activities using the amounts transferred to IEPF. Investor Awareness
Programmes (IAPs) are organized in association with three professional
institutes namely; (a) Institute of Chartered Accounts of India, (b) Institute of
Company Secretaries of India and (c) Institute of Cost Accounts of India. In
addition, investor awareness activities like Crawler messages on Doordarshan
through Prasar Bharti and airing jingles on All India Radio for the period of 90
days to create and increase investor's awareness were taken up.
Indian Corporate Law Service
Ministry of Corporate Affairs is the cadre controlling authority of the Indian
Corporate Law service (ICLS). The erstwhile Indian Company Law Service
was rechristened in November, 2008 as the Indian Corporate Law Service.
Serious Fraud Investigation Office
The Serious Fraud Investigation Office (SFIO) was set up in July, 2003. The
Companies Act, 2013, interalia, has accorded statutory status to SFIO and its
functions and powers have been enhanced substantially with number of
enabling provisions in the Act and it was established under Section 211 of the
Companies Act, 2013.
The main function of SFIO is to investigate corporate frauds of serious
and complex nature. It takes up investigation of frauds characterized by
complexity, and having inter-departmental and multi-disciplinary ramifications,
substantial involvement of public interest to be judged by size of either monetary