BUSINESS

Sebi to notify investors' protection scheme terms

Source:PTI
February 14, 2009 17:06 IST

Market regulator Securities and Exchange Board of India is expected to notify the provisions of investor group protection scheme within a month, a Sebi member said in Ahmedabad on Saturday.

"The provisions of investors group protection scheme is likely to be notified within a month, and the related guidelines will be released within next three months," whole time member Sebi M S Sahoo told PTI on the sidelines of launch of BCFM online certification in Gujarati.

"Sebi will support the investors if they approach as a group and go to seek court's help," he added.

The market regulator has constituted a seperate and dedicated fund for education and protection of investors, with an initial corpus of Rs 15 crore (Rs 150 million) at its disposal, and the funds size is expected to grow further, Sahoo said.

Sebi has also moved a proposal to the government saying that earnings made through levy of penalty that presently is diverted to consolidated funds as per the provisions of Act, should be changed. We want it to go to investor protection fund, he added.

"Unless the requisite changes are made in the Act, the funds coming through levy of penalty cannot be diverted to investor protection fund, Sahoo said.

Source: PTI
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