Sebi proposes reforms to streamline IPF, tighten bourse regulations

Key proposals include merging equity and commodity IPFs, introducing a three-year limit on investor claims, and tightening norms for exclusively listed firms

The Securities and Exchange Board of India (Sebi) has proposed a series of reforms to simplify rules for stock exchanges, aiming to improve ease of doing business and streamline investor claim processes.

 

One of the key suggestions is to introduce a three-year lookback period for Investor Protection Fund (IPF) claims in cases of broker defaults. The move is intended to curb stale and repetitive claims, ensuring faster settlement for genuine investors.

 

Unified IPF structure proposed

 

Sebi has also proposed the merger of IPFs for the equity and commodity segments into a single unified fund. The move is aimed at harmonising contributions, utilisation, and governance, while maintaining adequate safeguards for the commodity segment.

 

This unified structure is expected to simplify fund administration and bring uniformity to the protection framework across both market segments.

 

Stricter norms for listed firms

 

The regulator has also recommended tightening norms for promoters of exclusively listed companies. These measures are designed to ensure better compliance and enhanced investor protection.

 

Industry consultation underway

 

The proposals have been placed before Sebi’s Secondary Market Advisory Committee (SMAC) for industry feedback. Once finalised, they will be implemented through amendments to existing regulations governing stock exchanges and clearing corporations.