Sebi notifies rules for using IPEF for refunding investors

Tags: Investors, IPEF, SEBI, News
Aiming to help those having suffered losses due to irregularities in the capital markets, the Sebi today notified new norms that would allow it to utilise IPEF funds for the purposes of refund to aggrieved investors.

The new norms have been included in Sebi's regulations for 'Investor Protection and Education Fund (IPEF)'.

According to the new norms, the Securities and Exchange Board of India (Sebi) can in certain cases it "deems fit" make "restitution to eligible and identifiable investors who have suffered losses resulting from violation of securities laws...".

So far, the IPEF funds was utilised for the purposes of protection and education of investors including activities like seminars, training, for aiding investor associations and refund of the security deposits, among others .

The latest norms state that the money left in IPEF after refund to eligible investors would be used for other purposes specified in the regulations such as those relating to investor education.

Moreover, Sebi said "that no claim for restitution from the disgorged amounts in a specific case shall be admissible after a period of seven years from the date of invitation of claims for disgorgement in the said case by the Board (Sebi)".

Following the amendments these norms will be called the 'Securities and Exchange Board of India (Investor Protection and Education Fund) (Amendment) Regulations, 2014'.

The new norms were approved by the market regulator in its last board meeting in December, 2013.

The IPEF includes funds contributed by Sebi and grants and donations from the central and state governments.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • For those who are left to survive a war-torn world, let there be peace

    The hunger games have begun, and they have started reaping our children. There is no way around it.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Urs Schöttli

Shifting sands in the Far East

As was to be expected, Japanese prime minister Shinzo Abe ...

Zehra Naqvi

When humanity died, bestiality prevailed

The terrorist attack that killed 132 children in Peshawar has ...

Bubbles Sabharwal

Why self-esteem must be your best friend forever

Two negatives do make a positive! Imagine no doubts, no ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture