The Securities and Exchange Board of India (Sebi) has unveiled draft regulations on how to utilise the fund created by the watchdog for investor protection and education.Investor Protection and Education Fund has been created, as its name suggests, for education and protection of investors so that the market regulator meets the objectives suggested by various expert groups and the Joint Parliamentary Committee which is looking into the Ketan Parkeh scam.The regulations, on which public comments are invited by April 10, have also proposed setting up of a 10-member committee to advise the Sebi board on utilising the fund. The proposed regulations also suggested how the fund — created by Sebi with an initial sum of Rs 10 crore — will get further contributions. As per the draft regulations, the fund would get contributions from Sebi Board, grants and donations by the Centre and state governments, interest or other income received out of the investments made from the fund.The fund would also get money from interest on one per cent security deposit for new public issues, which are held by stock exchanges for the purpose of redressing complaints. The Joint Parliamentary Committee on Ketan Parekh Scam had recommended that Sebi undertake investor education and awareness campaign effectively. The committee had also suggested that investor education and protection fund and investor education resources of the Reserve Bank should be shifted to Sebi and a joint campaign for investor education should be undertaken by the regulator.While the amendments to Sebi Act are yet to be carried out for creating such kind of the fund, the market regulator by way of an executive order has created an Investor Protection and Education Fund.
