SEBI implements online payment system for Investor Protection and Education Fund replacing payment via demand drafts
Sep 7, 2023
SEBI implements online payment system for Investor Protection and Education Fund while the previous method of payment through demand drafts is no longer accepted.
Securities and Exchange Board of India (SEBI), capital markets regulator, implemented a online payment mechanism for its Investor Protection and Education Fund (IPEF) on September 6, PTI reported.
The purpose of this move is to streamline the payment process and improve accessibility for all contributors to the fund. Intermediaries can now conveniently make payments to IPEF using various online payment methods such as net banking, NEFT/RTGS, debit cards, and UPI.
This online-only payment system is now mandatory and can be accessed through the "click here to make payment to Sebi IPEF" tab on SEBI's website.
SEBI stated a press release that all remittances to the Sebi IPEF must be made exclusively through the designated website link. Contributors are required to provide necessary information, including the payer's name, PAN (Permanent Account Number), mobile number, email ID, purpose of payment, and the amount, PTI reported.
This change follows a circular from SEBI that was released on September 4 stating that funds can only be credited to its IPEF through online means, and the previous method of payment through demand drafts is no longer accepted.
SEBI instructed stock exchanges to inform all listed companies about this change in the payment method. The Investor Protection and Education Fund serve the purpose of promoting investor education, awareness, and protection.
The fund is utilised for educational activities such as seminars, training, awareness programs, and supporting investor education initiatives. Additionally, it assists investor associations in legal proceedings related to securities listed or proposed to be listed.
SEBI was constituted as a non-statutory body on April 12, 1988 through a resolution of the government of India.