Govt plans investor protection fund
The government is planning to set up an investor protection fund safeguaring interests of investors.
By Deepshikha, TNN |
NEW DELHI: The government is planning to set up an investor protection fund safeguaring interests of investors. The fund is proposed to be set up with amounts collected by the market regulator SEBI by way of fines and penalties.
At present, fines and penalties collected by Sebi are credited to the Consolidated Fund of India as required under Securities Contracts (Regulations) Act, 1956, the SEBI Act, 1992 and the Depositories Act, 1996, Finance Minister P Chidambaram told the Lok Sabha in a written reply on Friday.
He said the fund can be established after amending the relevant laws, and permitting credit of these amounts to it.
Protection of investors would the broad objective of the fund while its specific objectives would be determined in consultation with SEBI, he said.
Though, the Investor Education and Protection Fund set up under the Companies Act is administered by ministry of company affairs, this fund is proposed to be set up under the wings of SEBI, he said.
However, he said no budgetary allocation has been made for IPF so far as it is to be set up with amounts collected by SEBI by way of fines and penalties, he said. The fund was proposed in the union budget 2006-07.
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