SEBI Revises Guidelines on ‘Investor Protection Fund’ and ‘Investor Services Fund’
- Blog|News|Company Law|
- 2 Min Read
- By Taxmann
- |
- Last Updated on 1 June, 2023
Latest from Taxmann
Circular No. SEBI/HO/MRD/MRD-PoD-3/P/CIR/2023/81, Dated: 30.05.2023
The SEBI has merged and revised the guidelines on Investor Protection Fund (IPF) and Investor Services Fund (ISF) maintained by stock exchanges and depositories. These guidelines cover the constitution and management of the IPF. As per the revised guidelines, all stock exchanges and depositories are required to establish an IPF.
The IPF of the stock exchange and depository shall be administered through separate trusts created for the purpose. The IPF Trust of the stock exchange and depository shall consist of five trustees. The maximum tenure of a trustee (excluding the Chief Regulatory Officer or Compliance Officer, whose trusteeship would be co-terminus with their service) shall be five years or as specified by SEBI.
Further, the SEBI has provided for the contribution to IPF by exchanges and depositories and utilization of IPF. The amount in IPF along with any interest or income generated from the IPF of the stock exchanges and depositories shall be utilized for the purposes as provided in the guidelines.
The funds of the IPF Trust shall be invested in instruments such as Central Government securities, fixed deposits of scheduled banks and any such instruments which are allowed as per the investment policy approved by the respective governing boards of the stock exchanges and depository.
The balance available in the IPF as at the end of each month and the amount utilised during the month including the manner of utilization shall be reported to SEBI in the Monthly Development Reports of the stock exchanges and depository respectively.
Also, the stock exchanges and depositories are required to conduct a half-yearly review (by the end of March and September every year) to ascertain the adequacy of the IPF corpus. In case, the IPF corpus is found to be inadequate, the same shall be enhanced appropriately. The guidelines shall be effective from 29.06.2023.
Click Here To Read The Full Circular
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
Sign Up
To subscribe to our weekly newsletter please log in/register on Taxmann.com
Latest Books
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
CA | CS | CMA
