SEBI allows depositories spending up to 5% of IPF earnings
The Securities and Exchange Board of India (SEBI) just tweaked how depositories can use money from the Investor Protection Fund (IPF).
From September 1, 2026, they are allowed to spend up to 5% of yearly earnings from IPF investments on things like administrative costs, audit fees, and taxes.
The other 95% still needs to go straight back into the fund to keep investors' interests safe.
Depositories may use 5% for expenses
Previously, every rupee earned had to be put back into the fund: no exceptions.
Now, after taking in feedback from experts and the public, SEBI is letting depositories cover some necessary expenses (including staff salaries and audit fees), but with a strict cap.
If they do not use all of that 5%, it goes right back into the fund. Anything over that limit? Depositories have to pay for it themselves.
These changes are meant to make things smoother for everyone involved while still keeping investors protected.