(1) The Board shall ensure maintenance of proper and separate accounts and other relevant records in relation to the Fund giving therein the details of all receipts to, and, expenditure from, the Fund and other relevant particulars in accordance with the SEBI (Form of Annual Statement of Accounts and Records) Rules, 1994 as far as such rules apply.
(2) The accounts referred to in sub regulation (1) shall be prepared and audited before the expiry of six months from the end of each financial year.
(3) The investment of the Fund may be in the manner of investments of other funds of the Board.
(4) The accounts of the Fund may be audited in the manner of audit of other accounts of the Board.
CHAPTER V MISCELLANEOUS Power to relax regulations.
12. If in the opinion of the Board, strict enforcement of any regulation needs to be relaxed to achieve the purpose of investor protection and education, the Board may relax the same.
Delegation of powers.
13. The powers exercisable by the Board under these regulations shall also be exercisable by any member or officer of the Board to whom such powers are delegated by the Board by means of an order made under section 19 of the Act.
Amendments to other Regulation.
14. The regulation mentioned in the Schedule shall be amended in the manner and to the extent specified therein.
SCHEDULE Securities and Exchange Board of India (Investor Protection and Education Fund) Regulations, 2009 [See regulation 14] Amendments to other regulation Amendment of Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 1997.
1. In regulation 28,
(a) in sub-regulation (12) , for clause (e) , the following shall be substituted, namely:- “(e) the entire amount to the merchant banker, in the event of forfeiture for nonfulfillment of any of the obligations under the Regulations, for distribution in the following manner, after deduction of expenses, if any, of the merchant banker and the registrars to the offer, -
(i) one third of the amount to the target company;
(ii) one third of the amount to the Investor Protection and Education Fund established by the Board;
(iii) one third of the amount to be distributed pro-rata among the shareholders who have accepted the offer.”
(b) in sub-regulation (13) , for the words “to the regional stock exchange of the target company, for the credit of the Investor Protection Fund or any other similar fund” appearing after the words “ proceeds thereof” the words “to the Investor Protection and Education Fund established by the Board” shall be substituted.
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