Investor Protection Fund/Consumer Protection Fund (IPF/CPF)

Investor Protection Fund/Consumer Protection Fund (IPF/CPF)

In 1985, the Central Government had stipulated for the setting up of the IPF/CRF by different stock exchange which were following varying practices with respect to management and disbursement from the IPF/CPF. In order to bring uniformity in the practices follow by stock exchanges in respect of IPF/CPF, SEBI issued, in Oct. 2004, comprehensive Guidelines. Some of the provisions of these Guidelines are as follows:

  1. Constitution and Management of IPF/CPF: The constitution and management of IPF/CPF involves the following steps:
  • IPF/CPF is administered by way of a Trust.
  • The Trust will consist of one public representative, one from SEBI-registered investors associations and the ED/MD of the Stock Exchange.
  • IPF/CPF is immune from the liabilities of the Stock Exchange.

2. Contribution to IPF/CPF: Following contributions are to be made by the Stock Exchange.

  • 1% of the Listing fees received.
  • Interest earned on the security deposit

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