The Securities Exchange Board of India (SEBI) on May 11, 2026, issued the Consultation Paper on Review of utilization of interest or income from IPF Corpus of Depositories.
The following has been stated:
• SEBI issued a consultation paper proposing changes in the utilization of interest or income earned from the Investor Protection Fund (IPF) corpus maintained by depositories such as National Securities Depository Limited and Central Depository Services (India) Limited. At present, unlike stock exchanges, depositories are not permitted to use any portion of the interest or income generated from IPF investments for administrative expenses, and such costs are borne entirely by the depositories.
• It has proposed allowing depositories to utilize up to 5% of the annual interest or income earned from IPF investments for expenses related to dedicated IPF Trust employees, administrative and statutory expenses, including taxes, audit fees, and charity commissioner fees.
• Any expenditure beyond this limit would continue to be borne by the depositories, while any unutilized amount shall be transferred back to the IPF.
• The proposal was discussed and supported by the Secondary Market Advisory Committee (SMAC). As of March 31, 2026, the IPF corpus stood at ₹87.78 crore for NSDL and ₹95.18 crore for CDSL.
• Public comments on the proposal are invited by June 01, 2026.
