2014 (1) TMI 1839

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....urities contract (Regulation Act 1956). With a view to protect the interest of investor regarding legitimate investment claims the Government of India vide notification No. F 14/4/SE/85 dated 22.8.1985 stipulated setting up an Investor Protection Fund by all recognised Stock Exchange. In pursuant to the said notification of the Government of India, SEBI has also circulated comprehensive guidelines vide the Circular dated 28.10.2004 for setting up the Investor Protection Fund by the Stock Exchange. Thus, MCX Stock Exchange Ltd. has set up Investor Protection Fund being the assessee with the object in brief as under: a) Compensating Investors, who suffer loss on account of any Defaulter Member, through whom they trade and/or who had ....

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....Having considered the rival submissions and careful perusal of the relevant record we note that the application for registration u/s 12AA has been rejected by the DIT(Exemption) on the following grounds: i) the activity of the assessee being carried out not for the object of the general public utility but meant for benefit for specific persons investing through specific Stock Exchanges. ii) that the assessee does not qualify as a charitable institution as it does not cater for any public at large but it has been created to indemnity the investors against the loss caused on account of negligence etc. 6. At the outset we note that the Co-ordinate Bench of the Tribunal has dealt with both the objections of the DIT(Exemptio....