On 22nd October 2021, the Securities and Exchange Board of India (SEBI) Issued a circular dated on June 13th, 2017, on Comprehensive guidelines for Investor Protection Fund (IPF), Investor Service Fund (ISF) and its related matters.
- Based on the internal deliberations/discussions, and the feedback received from the Stock Exchanges, SEBI has been decided to modify the following clause of the aforesaid circular:
Clause 2 (g) shall be substituted with the following:
- Determination of legitimate claims
The Stock Exchanges shall ensure that once a member has been declared defaulter, the claim shall be placed before the Member Core Settlement Guarantee Fund Committee for sanction and ratification, MCSGFC’s advice. legitimate claims shall be sent to the IPF Trust for disbursement of the amount immediately.
- The provisions of this circular shall come into effect from January 1st, 2022.
- The Stock Exchanges are advised to:
Make necessary amendments to the relevant byelaws, rules and regulations.
Communicate to SEBI, the status of the implementation of the provisions of this circular through the Monthly Development Report (MDR).
- This Circular is issued in exercise of the powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act 1992, read with Section 10 of the Securities Contracts (Regulation) Act, 1956 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market. All other provisions of the relevant circular will continue to be in force
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