IEPF: The government will soon launch an online facility for retail investors to claim their deposits from chitfund companies and NBFCs. The decision has been taken to help those small investors who have been duped by dubious companies who collect money from small investors but don't pay back to them upon maturity of deposit certificates. The Investment Education and Protection Authority (IEPF) under the ministry of corporate affairs will soon commission online service for aggrieved investors. The online service will directly collect the information from investors. It will collect information like when their deposits have matured and still pending with NBFCs, chitfund companies for repayment or payment of interests. This online service is important as millions of small and marginal investors have been duped by thousands of crores of rupees by dubious companies. Supreme Court and SEBI have also cracked down on companies like Sahara, Saradha and Rose Valley for not refunding the investors money. Most of the complaints against chitfund and NBFCs relate to nonpayment of funds upon maturity. This facility will only collect essential details of investors and then the IEPF will take action against these companies to ensure compliance with provisions of the Companies Act, 2013 and other legal provisions. Cracking the whip IEPF has already recovered over Rs 1,500 crore from Peerless that will be refunded to depositors. The IEPF has also issued more than 4,000 notices to companies under section 206(4) of the companies act, asking them to provide information about the unclaimed funds pending with them for over 7 years. As per the law, NBFCs, chit fund companies and such entitites are required to transfer the unclaimed amount pending with them for seven years to the government. The IEPF also provides option to aggrieved depositors to file form 5 with the authority. Depositors whose unpaid money lying with the companies has been transferred to the IEPF can claim refund from the authority by filing IEPF form 5.