Depositories get to spend 5% of IPF interest income

SEBI has revised the framework for the Investor Protection Fund (IPF) maintained by depositories, allowing them to retain up to 5 percent of annual interest or income earned from IPF investments to meet administrative expenses such as salaries, audit fees, applicable taxes, and charity commissioner fees. Earlier, the entire interest earned had to be credited back to the IPF corpus. Any unutilised portion at the end of the financial year must be returned to the fund, and expenses exceeding the 5 percent limit will have to be borne by the depository.