SECURITIES AND EXCHANGE BOARD OF INDIA
SECONDARY MARKET DEPARTMENT
Mittal Court, A Wing, Gr. Floor,
224, Nariman Point, Mumbai 400 021
The President/Executive Director Managing Director of All the Stock Exchanges
Dear Sir,
SUB : Usage of interest income earned on Investor Protection Fund.
Investor Protection Fund has been formed to compensate the investors for loss in the event of the broker being declared defaulter. Over the period, there has been an increase in the corpus of this fund and the disbursement from the fund has come down drastically due to implementation of improved risk management.
In order to promote investor education and to create greater investor awareness, it has been decided to permit all the Stock Exchanges to utilize interest income earned on Investor Protection Fund for investor education, awareness and research.
Yours faithfully,
S.V. MURALIDHAR RAO
DIVISION CHIEF
ECONDARY MARKET DEPARTMENT
