SEBI to spend 5% of IPEF funds on investors’ education and awareness
Business: According to a BusinessLine report, the annual accounts of the last 10 years of capital market regulator SEBI (Securities and Exchange Board of India) show that utilisation of the Investor Protection and Education Fund (IPEF) hit a record low of ₹2.8 crore in FY24. Meanwhile, expenditure from IPEF stood at ₹11.9 crore in FY23, ₹6.8 crore in FY22 and ₹28.8 crore in FY21. The report further claims that expenditure as a percentage of the fund has been in the range of 0.5-5 per cent over the last five years. Year Expenditure from IPEF (Rs.) FY24 2.8 crore FY23 11.9 crore FY22 6.8 crore FY21 28.8 crore Ironically, the balance in the IPEF has been rising over the years. Between FY23 and FY24, its value more than doubled and reached Rs 533 crore by March 2024.
For those who don’t know, IPEF funds are supposed to be used for seminars, awareness programmes, assistance to investors’ associations and the salary of the ombudsman, among other things. The additions to the fund come from investment income and other receipts including grants and contributions from the SEBI board, etc.
Awareness programmes
SEBI’s FY24 annual report shows that it organised 43,826 awareness programmes across India, including regional investors’ seminars, workshops and others.
Stock market investors and market watchers believe that IPEF should better monitor its funds and expenditure, reported BusinessLine.
Apart from IPEF, stock exchanges and depositories also have similar funds for education and awareness, with total balances of Rs 2,793 crore and Rs 127 crore, respectively, as of March 2024.
