Modification to Investor Protection Fund (IPF)/ Customer Protection Fund (CPF) Guidelines

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.... circular no MRD/DoP/SE/Cir-38/2004 dated October 28, 2004 had issued comprehensive guidelines for regulation of Investor Protection Fund (IPF)/ Customer Protection Fund (CPF) required to be maintained by Stock Exchanges. Further vide circular No. MRD/DoP/SE/Cir-21/2006 dated December 14, 2006, SEBI issued a clarification to Clause 24 of the Annexure to Circular dated October 28, 2004, specifying ....

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....auses of the abovementioned Annexure, with a view to harmonise the practices followed by various exchanges to meet investor claims. 3. Thus it has been decided to modify the Comprehensive Guidelines - a) Clause 8 shall be substituted with the following - 8."The specified period for inviting legitimate claims against a defaulter member, shall be a minimum of ninety days." ....

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.... the investor from the IPF/ CPF incase there is a shortage of defaulter broker's assets after its realization." e) Clause 24, as it reads after incorporation of clarification vide Circular dated December 14, 2006, shall be substituted with the following - 24."The Stock Exchange shall ensure that the amount realized from the assets of the defaulter member is returned to the defaul....