Regulation 5 - Utilisation of Fund - Securities and Exchange Board of India (Investor Protection and Education Fund) Regulations, 2009

Utilisation of Fund. 5. (1) The Fund shall be utilised for the purpose of protection of investors and promotion of investor education and awareness in accordance with these regulations. (2) Without prejudice to the generality of the object in sub-regulation (1), the Fund may be used for the following purposes, namely:- (a) educational activities including seminars, training, research and publications, aimed at investors; (b) awareness programmes including through media - print, electronic, aimed at investors; (c) funding investor education and awareness activities of Investors Associations recognized by the Board; (d) aiding investors associations recognized by the Board to undertake legal proceedings in the interest of investors in securities that are listed or proposed to be listed; (e) refund of the security deposits which are held by stock exchanges and transferred to the Fund consequent on de-recognition of the stock exchange as mentioned in clause (d) of regulation 4, in case the concerned companies apply to the Board and fulfill the conditions for release of the deposit; (f) expenses on travel of members of the Committee, who are not officials of the Board, and special invitees to the meetings of the Committee, in connection with the work of the Committee; (g) salary, allowances and other expenses of office of Ombudsman; 2 [ ***** ] 3 [ (ga) any reward under the guidelines as may be issued by the Board from time to time for the grant and payment of reward to the informants for providing original information to the Board to recover amounts under section 28A of the Act or section 23JB of the Securities Contracts (Regulation) Act, 1956 (42 of 1956) or section 19-IB of the Depositories Act, 1996 (22 of 1996); and ] (h) such other purposes as may be specified by the Board. 5 [ (3) Notwithstanding the provisions of sub-regulations (1) and (2),- i. the amounts disgorged and credited to the Fund in accordance with clause (h) of sub-regulation (1) of regulation 4 of these regulations and the interest accrued thereon shall, in cases where the Board deems fit to make restitution to eligible and identifiable investors who have suffered losses resulting from violation of securities laws or for rewarding informants who provide original information to the Board to recover amounts directed to be disgorged, be utilised only for the purposes of such restitution or reward; ii. the amounts credited to the Fund in accordance with clauses (j), (k) and (l) of sub-regulation (1) of regulation 4, shall be utilised for refund to the entities transferring the said amounts, pursuant to their making payment to eligible and identifiable investors and making a claim to the Fund in the manner specified by the Board: Provided that monies remaining in the Fund after earmarking, - i. the amount for the process of restitution to eligible and identifiable investors credited to the Fund in accordance with clause (h) of sub-regulation (1) of regulation 4; and ii. the amount for refund to the entities transferring the said amounts credited to the Fund in accordance with clauses (j), (k) and (l) of sub-regulation (1) of regulation 4; may be utilised for the purposes of the Fund as specified in sub-regulations (1) and (2): Provided further that no claim for restitution from the disgorged amounts in a specific case shall be admissible after a period of seven years from the date of invitation of claims for disgorgement in the said case by the Board. ] ************** NOTES:- 1. Inserted vide Notification No. LAD-NRO/GN/2013-14/38/49 dated 09-01-2014 2. Omitted vide Notification No. SEBI/LAD-NRO/GN/2023/126 dated 28-02-2023 , before it was read as, and 3. Inserted Vide Notification No. SEBI/LAD-NRO/GN/2023/126 dated 28-02-2023 , 4. Substituted vide Notification No. SEBI/LAD-NRO/GN/2023/126 dated 28-02-2023 , before it was read as, ,be utilised only for the purposes of such restitution 5. Substituted vide Notification No. SEBI/LAD-NRO/GN/2023/157 dated 20-10-2023 before it was read as, 1 [(3) Notwithstanding the provisions of sub-regulations (1) and (2), amounts disgorged and credited to the Fund in accordance with clause (h) of regulation 4 of these regulations and the interest accrued thereon shall, in cases where the Board deems fit to make restitution to eligible and identifiable investors who have suffered losses resulting from violation of securities laws 4 [ or for rewarding informants who provide original information to the Board to recover amounts directed to be disgorged, be utilised only for the purposes of such restitution or reward: ] : Provided that monies left in the Fund after earmarking the amount for the process of restitution to eligible and identifiable investors may be utilised for the purposes of the Fund specified in sub-regulations(1) and (2): Provided further that no claim for restitution from the disgorged amounts in a specific case shall be admissible after a period of seven years from the date of invitation of claims for disgorgement in the said case by the Board.]