National Commodity Derivatives Exchanges can carry forward unutilized investor protection fund

National Commodity Derivatives Exchanges(NCDE) can carry forward unutilized investor protection fund (IPF) interest income accruing during a specific financial year to the next financial year to enable effective utilization of such money by the exchanges during the extended period,Sebi clarified on Wednesday.

"NCDEs are hereby permitted to utilize IPF interest income for undertaking research activities related to commodities market, provided every such research activity/ project can be undertaken only after obtaining prior written approval of the trustees of the IPF Trust,who would inter alia, record the reasons, relevance and stated objectives of the research project while according approval to such activity/ project. Further, the Board of the exchange may be apprised of the research programs / activities being undertaken atleast once in every quarter or half year of a given financial year,"Sebi said in a circular.

The regulator said there will be an overall cap on the total amount,not more than 10% of the interest amount of IPF can be spent on research activities related to commodities market.