Description

Amendment to SEBI's Investor Protection and Education Fund regulations, adding provisions for delisting-related fund transfers.

Summary

SEBI has issued amendment regulations to the Securities and Exchange Board of India (Investor Protection and Education Fund) Regulations, 2009. The key change adds a new source of funds to the Investor Protection and Education Fund - amounts transferred under regulation 38B(3)(c) of the SEBI (Delisting of Equity Shares) Regulations, 2021.

Key Points

  • Amendment to regulation 4 adds a new clause (ठक) specifying funds transferred under delisting regulations
  • Amendment to regulation 5 updates references to include the new fund source in utilization provisions
  • Regulations effective from the date of publication in the Official Gazette
  • Published as notification F. No. SEBI/LAD-NRO/GN/2025/256 dated September 1, 2025

Regulatory Changes

  • New Fund Source: Addition of clause (ठक) in regulation 4(1) to include amounts transferred under SEBI (Delisting of Equity Shares) Regulations, 2021, regulation 38B(3)(c)
  • Updated References: Modification of regulation 5(3) and its proviso to include references to the new clause for fund utilization purposes
  • Legal Framework: Amendment made under section 30 of the Securities and Exchange Board of India Act, 1992

Compliance Requirements

  • No specific compliance actions required from market participants
  • Amendment is procedural, affecting SEBI’s internal fund management framework
  • Entities involved in delisting processes should be aware of fund transfer mechanisms to the Investor Protection and Education Fund

Important Dates

  • Notification Date: September 1, 2025
  • Publication Date: September 2, 2025
  • Effective Date: From the date of publication in the Official Gazette

Impact Assessment

This amendment has limited direct market impact as it primarily affects SEBI’s internal fund management processes. The inclusion of delisting-related fund transfers strengthens the Investor Protection and Education Fund’s scope, potentially providing additional resources for investor protection initiatives. Companies undergoing delisting procedures may see enhanced clarity on fund transfer obligations to the regulatory fund.

Impact Justification

Technical regulatory amendment affecting fund transfer mechanisms for delisting scenarios