The annual accounts of the capital markets regulator SEBI (Securities and Exchange Board of India) over the past 10 years reveal that the use of the Investor Protection and Education Fund (IPEF) reached a historic low of ₹2.8 crore in FY24, reported Line of business.
Meanwhile, IPEF’s expenses stood at ₹11.9 crore in FY23, ₹6.8 crore in FY22, and ₹28.8 crore in FY21.
Expenses as a percentage of the fund have remained in the range of 0.5-5 percent over the past five years, the report added.
Ironically, the IPEF balance has been growing over the years. Between fiscal year 2023 and 2024, its value doubled and reached ₹533 crore by March 2024.
For those who don’t know, the IPEF fund is supposed to be used for seminars, awareness programsto assist investors associations and for the salaries of the Ombudsman, among others. Additions to the fund are derived from investment income and other income, including grants and contributions, etc., of the Board of Directors of SEBI.
Awareness programs
SEBI’s FY24 annual report shows that it conducted 43,826 awareness programmes across India, including regional investor seminars, workshops and others.
IPEF is supposed to keep better track of its funds and expenditures, stock investors and market trackers believe, reported Line of business.
In addition to IPEF, stock exchanges and depositories also have similar funds earmarked for education and awareness that have a total balance of ₹2,793 crores and ₹127 crore, respectively, as of March 2024.
“More than the amount spent on investor education, we need to see if the expenditures have the desired impact,” says Shyam Shekhar, investor and founder of itthought Advisory.
It is worth remembering that SEBI implemented an online payment mechanism for IPEF as of September last year.
The aim was to streamline the payment process and improve accessibility for all contributors to the fund. With this measure, intermediaries could conveniently make payments to IPEF through online banking, NEFT/RTGS, debit cards and UPI.
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