The revised IPF framework necessitates that at least 95% of investment income be utilized to strengthen the corpus, while allowing up to 5% for specified administrative and statutory expenses starting September 1, 2026.
Revisions to IPF Interest Utilisation Norms by SEBI
On July 3, 2026, SEBI amended the Investor Protection Fund (IPF) framework to mandate that a minimum of 95% of investment income be utilized towards strengthening the corpus. This regulation will take effect from September 1, 2026, and allows up to 5% of the income to be used for specified administrative and statutory expenses.
The modification in utilisation norms is intended to ensure that the primary objective of the IPF is maintained, while also addressing practical administrative needs. By permitting a modest allocation for expenses, SEBI aims to enhance the operational efficiency of the IPF.
Legal professionals involved with entities eligible for the IPF should prepare for implementation of these new norms, advising clients on compliance obligations and ensuring that the funds' management aligns with the updated requirements.
Citations
- SEBI Notification (2026) SEBI Official Gazette
