SEBI notifies Investor Protection and Education Fund Regulations

May 19, 2009: SEBI has notified the SEBI (Investor Protection and Education Fund) Regulations, 2009, on May 19, 2009, with a view to strengthening its activities for investor protection.

The salient features of these regulations are as follows:

The Fund shall be used for the protection of investors and promotion of investor education and awareness, in ways like:-

(a) educational activities including seminars, training, research and publications, aimed at investors;

(b) awareness programmes through media - print, electronic, aimed at investors;

(c) funding investor education and awareness activities of investors’ associations recognized by the Board;

(d) aiding investors’ associations recognized by the Board to undertake legal proceedings in the interest of investors in securities that are listed or proposed to be listed.



The Board shall constitute a seven-member advisory committee for recommending investor education and protection activities as mentioned above, to the Board. This Committee would comprise of both SEBI officials and outside experts.

These regulations also provide for suitable amendment to the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations 1997, to provide for one of the sources of income for the IPEF.

NOTE: SEBI had, by way of an executive order, created the fund on July 23, 2007 by crediting an initial corpus of Rs 10 crore out of the SEBI General Fund. After the delay of almost two years, market regulator SEBI has operationalised the fund.

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