Depositories can use part of IPF corpus income for trust costs
Sebi has proposed allowing depositories to use up to 5% of their investor protection fund (IPF) income for administrative and statutory expenses. This move aims to align IPF trust operations with existing stock exchange frameworks. The IPF corpus ...
By ET Bureau |
IANS
If the administrative or statutory expenses exceed 5% of the interest or income generated during the year, the excess amount would have to be borne by the depository itself.
MUMBAI: Sebi on Monday proposed to allow depositories to use a portion of income earned from their investor protection fund (IPF) corpus to meet administrative and statutory expenses of IPF trusts.
The regulator said this would align the framework with rules already applicable to stock exchanges.
As of March 31,2026, the IPF corpus stood at ₹87.78 crore for NSDL and ₹95.18 crore for CDSL.
Sebi has proposed allowing depositories to utilise up to 5% of the annual interest or income received from investments of the IPF corpus towards expenses related to dedicated IPF trust employees, audit fees, applicable taxes and charity commissioner fees.
If the administrative or statutory expenses exceed 5% of the interest or income generated during the year, the excess amount would have to be borne by the depository itself.
The regulator said this would align the framework with rules already applicable to stock exchanges.
As of March 31,2026, the IPF corpus stood at ₹87.78 crore for NSDL and ₹95.18 crore for CDSL.
Sebi has proposed allowing depositories to utilise up to 5% of the annual interest or income received from investments of the IPF corpus towards expenses related to dedicated IPF trust employees, audit fees, applicable taxes and charity commissioner fees.
If the administrative or statutory expenses exceed 5% of the interest or income generated during the year, the excess amount would have to be borne by the depository itself.
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