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Informist, Monday, May 11, 2026

MUMBAI – The Securities and Exchange Board of India has proposed to allow depositories to use part of the interest received from their investments in the investor protection fund to meet expenses related to employees of the IPF Trust, according to a consultation paper Monday. Depositories may spend up to 5% of the interest received from their investments in the investor protection fund every year on employee related expenses, and other administrative and statutory expenses such as taxes, audit fees, and charity commissioner's fee.

Any additional expenses, beyond the 5% limit, will be borne by the depositories. Further, any funds that are not utilised must be ploughed back to the investor fund, SEBI said.

These changes will bring the rules related to the investor protection fund of depositors in line with those for stock exchanges, SEBI said. As of Mar. 31, the two depositories – Central Depository Services Ltd. and National Securities Depository Ltd. – had investor protection fund corpus of INR 951.80 million and INR 878.80 million, respectively.

Public can send their comments and suggestions about the consultation paper by Jun. 1. CDSL, which is listed on the National Stock Exchange, closed at INR 1,226.80 per share on Monday and NSDL, which is listed on the BSE, closed at INR 869.60 per share. These stocks ended the session 1-3% lower than on Friday.  End

Reported by Anshul Choudhary

Edited by Avishek Dutta

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