Market regulator Securities and Exchange Board of India (Sebi) is in the process of raising resources for setting up an investor protection fund.The fines and penalties levied on listed companies would be used to set up the fund, M Damodaran, chairman of Sebi, said on the sidelines of a CEO summit.For the fund, the SEBI Act 1992 would have to be amended, he said.The draft of the proposed new Act had been sent to the inter ministerial committee, which would later be placed before Parliament either towards the end of the current session or during the budget session, he said.By the second half of 2007, the bill is likely to become an act, he said, adding the new act would be on the lines of US Security Act.By mid-07, the market regulator would be conducting a country-wide massive investor education programme to educate small and retail investors, he said.Sebi is also in the process of simplifying the process of delisting of sick and closed-down companies. A draft scheme for facilitating de-listing has been put up on the Sebi website and responses are awaited, he said.Meanwhile, Sebi chief M Damodaran today urged captains of industry to collectively persuade Kerala' political leadership to develop physical infrastructure in order to ensure investment flow into the state."There should be orchestrated efforts from the industry to engage the political leadership to fix the basic needs in infrastructure. It is not only during the elections they need to respond to solutions," Damodaran said the CEO summit.Though in terms of social infrastructure, Kerala topped among the state, in terms of physical infrastrcture, it lagged far behind, he said. While Bangalore, Hyderabad and Chennai were being talked about, one does not hear about Kerala in the same vein, he said.Pointing out that he was not asking for confrontation, Damodaran said this was the time the process could be taken forward.NRI money should be used for productive activities, he said.
