MANU/SDEP/0001/2016

Ministry : Securities and Exchange Board of India

Department/Board : Market Regulation Department

Circular No. : SEBI/HO/MRD/DP/CIR/P/2016/58

Date : 07.06.2016

Notification/ Circulars Referred : Circular no. SMDRP/Policy/Cir-05/2001 dated February 01, 2001 MANU/SSMD/0022/2001

Citing Reference:
Circular no. SMDRP/Policy/Cir-05/2001 dated February 01, 2001 MANU/SSMD/0022/2001  Referred

To,

The Depositories,

Dear Sir / Madam,

Investor Protection Fund (IPF) of Depositories

1. The Depository System Review Committee (DSRC) had examined various aspects of the depository IPF including utilization and investment policy of IPF and quantum of funds to be transferred to IPF. The Expert Committee on Clearing Corporations also deliberated the issue with regard to quantum of funds to be transferred by the Depositories to their IPF.

2. SEBI (Depositories and Participants) (Amendment) Regulations, 2012 require every depository to establish and maintain an Investor Protection Fund (IPF). Pursuant to the aforesaid committee recommendations, the SEBI (Depositories and Participants) Regulations were amended mandating the depositories to credit five per cent or such percentage as may be specified by the Board, of its profits from depository operations every year to the IPF.

3. Based on recommendations of DSRC and Expert Committee on Clearing Corporations, the following guidelines are being issued with regard to IPF of the Depositories.

Utilization of the IPF

4. The IPF may be utilized for the following purposes with a focus on depository related services:

i. Promotion of investor education and investor awareness programmes through seminars, lectures, workshops, publications (print and electronic media), training programmes etc. aimed at enhancing se........