Mumbai, Mar 19: The Securities and Exchange Board of India (SEBI) has created an Investor Protection and Education Fund with an initial corpus of Rs 10 crore and has invited public comments on the draft regulations that will govern the fund. The initial corpus has been created out of the SEBi General Fund. The deadline for submitting comments is April 10, reports Our Bureau in Mumbai.

According to the draft paper, the fund shall be used for the purpose of education programs through print and electronic media, organising seminars and symposia and conducting R&D. The fund will also be used for projects for investor education and protection including research activities and for financing such projects and co-ordinating with investors' associations registered with SEBI.

Meanwhile, the proceeds of foreclosures of deposit/invocation of bank guarantee/sale of securities kept in escrow accounts by an acquirer in case of non fulfilment of his obligations shall be credited to the new fund. Further, interest on 1% security deposit for new public issues, which are held by stock exchanges for the redressal of complaints, payment of underwriting fees, will also be credited to the fund.

"Funds shall be utilised by the (SEBI)The Securities and Exchange Board of India (SEBI) has created an Investor Protection and Education Fund with an initial corpus of Rs 10 crore and has invited public comments on the draft regulations that will govern the fundi) board for the specified objective on the recommendation of a committee constituted in accordance with the proposed regulations," says the release. A whole time member of SEBI would be the ex-officio chairperson of the committee, while two SEBI executive directors would be the ex-officio members.

Further, the term of office of the chairperson and members would be one year. The committee, which would also include representatives of investor associations, intermediaries and stock exchanges, would meet once in every quarter of a financial year.