The Securities and Exchange Board of India (SEBI) on July 07, 2026, has revised the norms governing the utilization of interest or income generated from the Investor Protection Fund (IPF) of Depositories by amending the relevant provisions of the SEBI Master Circular for Depositories dated December 03, 2024. The revised provisions shall come into effect from September 01, 2026.
The following has been stated:
• Depositories shall contribute at least 95% of the interest or income earned from investments made out of the IPF to the IPF corpus every year, replacing the earlier requirement of 100%.
• A maximum of 5% of the annual interest or income from IPF investments may be utilized towards expenses relating to dedicated IPF Trust employees, administrative and statutory expenses such as taxes, audit fees and charity commissioner’s fees. Any unutilized amount must be ploughed back into the IPF, while any excess expenditure shall be borne by the depository.
• Depositories have been directed to implement the revised framework, make necessary amendments to their bye-laws, rules and regulations, and disseminate the changes to market participants and investors.
Please refer to the document attached below for more details.
[SEBI Circular No. HO/47/14/13(4)2026-MRD-POD3/I/15577/2026]
