New Delhi, Nov 17: To enhance the effectiveness of investor protection fund (IPF), Sebi has directed BSE to conduct annual review to ascertain the adequacy of the IPF corpus and disclose the corpus as well as policy on processing of investors' claim on its website.
The exchange received a letter on November 13, 2020 from Sebi whereby the regulator has informed that in order to increase the effectiveness of IPF of bourses, it has comprehensively reviewed the existing framework in consultation with the stock exchanges, BSE said in a statement on Tuesday.
Based on the review, the regulator has decided to revamp the grievance redressal mechanism at exchanges with respect to clients of defaulting trading members.
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Accordingly, Sebi has directed BSE to conduct annual review to ascertain the adequacy of the IPF corpus of the exchange, disclose the IPF corpus on its website and update the same on a monthly basis.
The exchange has been directed to implement the Standard Operating Procedure (SOP) prescribed by Sebi for processing of investor's claims and time line for declaration of defaulter.
It, has been further, directed to disseminate the policy for processing of the investor's claims on its website along with FAQs (frequently asked questions) for easy understanding of the investors.
The exchange has been asked to give adequate advance notice to the investors before implementing any amendment to its policy for processing of investor's claims.
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Sebi has also advised BSE to take steps to make investors aware of the revised framework.
The exchange has been directed to give compliance report regarding the implementation of the direction within 30 days.
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