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SEBI plans to merge equity, commodity investor protection funds

Business

SEBI is looking to combine the separate investor protection funds for equities and commodities into one trust.
Right now, there are two different safety nets—one for stocks, bonds, and derivatives, and another just for commodities.
This move is all about making things simpler and giving investors better protection across both markets.

What to expect from the merger

Merging the funds should cut down on duplicate admin work and costs, plus make compensation rules fairer.
Good news if you're a commodity investor: payouts are likely to be aligned with those in the equity market.
Since 2015, both markets have been under SEBI's watch anyway—so this change just brings everything in line.
Keep an eye out; SEBI is expected to issue a consultation paper proposing the merger.