Sebi to set up investor fund

Securities and Exchange Board of India (Sebi) will set up an Investor Protection Fund (IPF) for educating small and medium investors, said Sebi chairman M Damodaran.

Addressing the CEO conclave organised by the Kerala Management Association (KMA) here on Monday, he said that Sebi would launch a massive country-wide investor education programme by mid-2007.

The money collected as fines and penalties by Sebi would be set apart as corpus for the fund and the Sebi Act of 1992 would be amended to introduce this soon.

The Bill to amend the Act would be introduced either in the current session or the budget session of the parliament.

Sebi had proposed the amendments mostly in line with the Securitisation Act of USA. As part of a parliamentary process, the Bill is likely to be referred to a parliamentary subcommittee after introduction.

The Bill is already being considered by a ministerial committee. "We are hopeful that the Bill will be enacted by the mid of 2007", he added.

Damodaran said that Sebi had already launched the process of de-listing shares of companies and had invited feedback from various firms, investors and the general public.

A large number of un-traded shares had locked huge investment of the public, especially of small and medium investors.