Securities and Exchange Board of India (SEBI) has issued a new circular dated September 4, 2023, outlining important changes in the mode of payment with respect to the SEBI Investor Protection and Education Fund (IPEF). The circular aims to streamline the payment process, offering multiple payment options and ensuring greater ease for market participants.
Context: The new circular serves as an update to a previous one, dated July 23, 2020, which prescribed that payments to the SEBI IPEF could be made through online mode or by demand draft (DD). However, the new directive mandates that payments must now be made exclusively through a designated link provided on SEBI’s homepage.
New Payment Options: SEBI has expanded the range of payment options for remittances to the IPEF, now including:
Requisite Information for Online Payments: While making online payments through the newly provided link, payers are required to furnish specific details such as their name, PAN, mobile number, email ID, the purpose of the payment, and the amount to be paid. This aims to make the transaction transparent and traceable.
Implications for Listed Companies: The circular explicitly advises stock exchanges to disseminate this information to all companies listed on their platforms. This makes it imperative for listed companies to update their compliance protocols to align with the new payment system.
Circular No. SEBI/HO/GSD/TAD/P/CIR/2023/149 Dated: September 4, 2023
All listed Companies through the Stock Exchanges
Sub: Change in Mode of Payment w.r.t. SEBI Investor Protection and Education Fund Bank A/c
1. Please refer to Circular no. SEBI/HO/ISD/ISD/CIR/P/2020/135 dated July 23, 2020 wherein SEBI had prescribed that the amounts shall be credited to the SEBI Investor Protection and Education Fund through online mode or by way of a demand draft (DD) in favour of the Board (i.e. SEBI IPEF). Henceforth, remittances to SEBI IPEF shall be made only through the below mentioned link.
2. SEBI has opened a new bank account to facilitate market participants to make payment to SEBI Investor Protection and Education Fund (SEBI IPEF). In this regard, a link has been provided in the Homepage of SEBI website (sebi.gov.in) under the head “Click here to make payment to SEBI IPEF”. The link enables the remitter to make payment in any of the following manner:
– Net banking
– Debit Cards
3. While making the remittances online, through the above link, remitters shall furnish the requisite information like name of the payer, PAN, mobile number, email ID, the purpose for which payment is made, the amount to be paid, etc.
4. The Stock Exchanges are advised to take note of the same and inform the above changes to all the companies listed on their Exchange through a CircuIar.
5. This circular is issued in exercise of the powers conferred under section 11(1) of the Securities and Exchange Board of India Act, 1992 and shall come into force with immediate effect.
6. This circular is available on SEBI Website at www.sebi.gov.in under the category “Circulars”
SALMANU K K
Deputy General Manager
Email id: palmAnuk@sel3i.gov.in