TaxTMI 
TaxTMI 
Comprehensive guidelines for Investor Protection Fund, Investor Service Fund and its related matters at National Commodity Derivatives Exchanges
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....g to Investor Protection Fund, issued by the erstwhile FMC, applicable to the National Commodity Derivatives Exchanges (herein after referred to as Exchanges). 2. With the objective to align with the practices in securities markets, based on the internal deliberations, discussions and feedback as received from the National Commodity Derivatives Exchanges, it has been decided to modify certain clauses in the aforesaid circular as under : Constitution and management of the IPF a) Clause 3.2. shall be substituted the following - 3.2. The IPF Trust of the exchange shall have maximum 5 trustees. The IPF Trust shall consist of three public interest directors, one representative from investor associations recognized b....
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....een filed during the specified period for reasons beyond the control of the claimant. Provided that any claim received after three years from the date of expiry of the specified period may be dealt with as a civil dispute. e) Clause 6.3. shall be deleted f) Clause 6.4. shall be substituted the following- 6.4. The investor claim arising out of a default of a broker/member of the exchange shall be eligible for compensation from IPF. Determination of legitimate claims g) Clause 7.1. and 7.2. shall be substituted as following- 7.1. In case of claims against a defaulter member, the claims of the claimant shall be placed before the defaulters' committee for sanction and ratification. ....
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.... of Claims from the IPF k) Clause 9.2. and 9.3. shall be substituted the following: 9.2. The compensation shall be disbursed to the investor from the IPF in case there is a shortage of defaulter broker's assets after its realization. 9.3. The Exchange shall ensure that the amount realized from the assets of the defaulter member is returned to the defaulter member after satisfying the claims of the exchanges and SEBI in accordance with the bye-laws of the exchange. Provided that in case of a member broker having membership on multiple exchanges, amount realized from the assets of the defaulter member shall be returned to the said member only after satisfying eligible claims of the concerned exchange, SEBI,....
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....l be ploughed back to IPF. In addition to above, the income earned on the IPF corpus may be utilized in other manner as prescribed/permitted by SEBI in the interest of investors from time to time. 6. In order to ensure effective utilization of income earned on IPF, supervision of utilization of interest on IPF will rest with the IPF Trust of the exchange. Investor Service Fund (ISF) 7. Exchanges are mandated to set up Investor Service Fund (ISF) for providing following basis minimum facilities at various Investor Service Centers (ISC). a. The ISC shall provide 4 financial newspapers with at least one in the Regional language. b. The ISC shall install computer software (marketed by some vendors) which provide infor....
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....elevant laws, financial analysis, market trend analysis etc. for the education of the investors. h. The ISC shall conduct various investor education and investor awareness programs through seminars, lectures, workshops, publications (print and electronic media), training programs etc. enhance literacy and promoting participation in the commodity derivatives market. Contribution to ISF a. At initial stage, the exchange shall contribute a minimum of Rs Ten Lakhs towards setting up of Investor Service Fund (ISF). Subsequently, onwards, the Exchanges shall transfer the 1% percent of the turnover fees charged by the exchange from its members on monthly basis towards ISF within 7 days of the end of the month, subject to....