The Securities and Exchange Board of India (SEBI) on July 07, 2026, issued a circular regarding the revision of Utilization Norms for Depositories' Investor Protection Fund (IPF) Income.
The following has been stated:-
•SEBI has revised the norms for utilization of interest or income earned from Depositories' Investor Protection Fund (IPF) investments to align the framework with stock exchanges and ensure greater uniformity.
•Under the revised provisions, at least 95% of the annual interest or income must be reinvested into the IPF corpus, while up to 5% may be used for IPF Trust administrative, statutory, audit, and related expenses during the financial year.
•Any unutilized portion of the 5% or expenses exceeding the prescribed limit must be borne by the depository or credited back to the IPF corpus, as applicable.
•The revised norms will come into effect from September 01, 2026, and depositories are required to update their systems, rules, and stakeholder communications accordingly.
[Circular No.: HO/47/14/13(4)2026-MRD-POD3/ I/15577/2026]
