Sebi notifies rules for using IPEF for refunding investors
Jan 09 2014 , Mumbai
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.