Sebi Proposes Allowing Depositories to Use IPF Income for Operational Expenses
Sebi mulls allowing depositories to use IPF income for specific expenses
Business Standard
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The Securities and Exchange Board of India (Sebi) has proposed that depositories be permitted to use a portion of the income from their Investor Protection Fund (IPF) for specific operational expenses. However, any excess costs must still be covered by the depositories themselves, and unused funds must be returned to the IPF corpus.
- 01Sebi's proposal aims to ease operational costs for depositories.
- 02Only a portion of the IPF income can be used for expenses.
- 03Excess expenses beyond the limit will remain the responsibility of depositories.
- 04Unused funds from the IPF must be returned to the corpus.
- 05The proposal is still under consideration and not yet finalized.
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The Securities and Exchange Board of India (Sebi) has put forward a proposal that would allow depositories to utilize a portion of the income generated from their Investor Protection Fund (IPF) for specific operational expenses. This move is intended to help depositories manage their costs more effectively. However, Sebi has stipulated that any expenses exceeding the proposed limits must continue to be borne by the depositories themselves. Additionally, any unused amounts from the IPF must be returned to the fund's corpus. This proposal is currently under consideration and has not yet been finalized, indicating that further discussions may take place before any changes are implemented.
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This proposal could help depositories manage their operational costs more efficiently, potentially leading to lower fees for investors in the long run.
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