SEBI Update - Comprehensive guidelines for Investor Protection Fund (IPF) and Investor Services Fund (ISF) for Stock Exchanges having commodity derivatives segment

SEBI vide circulars dated September 26, 2016, June 13, 2017, March 14, 2018 and October 22, 2021 has issued provisions for Investor Protection Fund and Investor Service Fund for commodity derivatives segment. Further, circular on Price Dissemination through SMS/Electronic Communication Facility was issued on August 30, 2016. These aforementioned Circulars have been rescinded with issuance of Master Circular for Commodity Derivatives Segment dated August 04, 2023. SEBI vide Circular dated May 30, 2023 has issued Comprehensive guidelines for Investor Protection Fund and Investor Services Fund at Stock Exchanges and Depositories (excluding Commodity Derivatives Exchanges) with inclusion of new provisions. Further, representations were received from market participants with respect to propositions on Ease of Doing Business in commodity derivatives segment. Considering these developments, the IPF and ISF guidelines for commodity derivatives segment are being revised.

After due consultation with the stock exchanges, the new requirements have been framed as under

Guidelines for Investor Protection Fund (IPF)

Constitution and Management of the IPF Contribution to the IPF Manner of inviting claims from the Investors Eligibility of Claims Threshold limit for Claims: Determination of Legitimate Claims Disbursements of claims from the IPF Deployment of funds of IPF Utilisation of IPF Utilization of Interest or Income earned on IPF

The Circular shall come into force from June 01, 2024.

Link - View Circular