Tuesday October 26 2021

News Source: Global Exchanges

Focus: Stock Exchange Regulation

Type: General

Country: India

Link: https://bit.ly/2ZmnXdc

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 theĀ  Stock Exchanges, SEBIĀ  hasĀ  beenĀ  decidedĀ  to modify theĀ  following clause ofĀ  theĀ  aforesaid circular:

Clause 2 (g) shall be substituted with the following:

  • Determination of legitimate claims

The Stock Exchanges shall ensure that onceĀ  aĀ  memberĀ  hasĀ  beenĀ  declared defaulter,Ā  theĀ  claim shallĀ  beĀ  placedĀ  beforeĀ  theĀ  MemberĀ  CoreĀ  Settlement Guarantee Fund Committee for sanction and ratification, MCSGFCā€™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 toĀ  promoteĀ  theĀ  developmentĀ  of,Ā  andĀ  toĀ  regulateĀ  theĀ  securities market. All other provisions of the relevant circular will continue to be in force

Click on the above link for further information