(1) The Fund shall be utilised for the purpose of protection of investors and promotion ofinvestor education and awareness in accordance with these regulations.
(2) Without prejudice to the generality of the object in sub-regulation (1), the Fund may be used for the following purposes, namely:-
(a) educational activities including seminars, training, research and publications, aimed atinvestors;
2Substituted by the SEBI(Investor Protection and Education Fund) (Amendment) Regulations, 2014 w.e f. 09‐01‐
2014. Prior to substitution, it read as under:
"(c) proceeds in accordance with the sub‐clause (ii) of clause(e) of sub‐regulation (12) and the sub‐ regulation (13)of regulation 28 of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 1997".
3 Inserted ibid.
4Renumbered by the SEBI (Investor Protection and Education Fund) (Amendment) Regulations, 2014 w.e f. 09‐01‐
2014.
5 Ibid.
6Inserted by the SEBI (Payment of Fees and Mode of Payment) (Amendment) Regulations, 2017, w.e.f. 6‐3‐2017.
(b) awareness programmes including through media - print, electronic, aimed at investors;
(c) funding investor education and awareness activities of Investors’ Associations recognizedby the Board;
(d) aiding investors’ associations recognized by the Board to undertake legal proceedings inthe interest of investors in securities that are listed or proposed to be listed;
(e) refund of the security deposits which are held by stock exchanges and transferred to theFund consequent on de-recognition of the stock exchange as mentioned in clause (d) ofregulation 4, in case the concerned companies apply to the Board and fulfill the conditions forrelease of the deposit;
(f) expenses on travel of members of the Committee, who are not officials of the Board, andspecial invitees to the meetings of the Committee, in connection with the work of theCommittee;
(g) salary, allowances and other expenses of office of Ombudsman; and
(h) such other purposes as may be specified by the Board.
7[(3) Notwithstanding the provisions of sub-regulations (1) and (2), amounts disgorged andcredited to the Fund in accordance with clause (h) of regulation 4 of these regulations and theinterest accrued thereon shall, in cases where the Board deems fit to make restitution to eligibleand identifiable investors who have suffered losses resulting from violation of securities laws, beutilised only for the purposes of such restitution:
Provided that monies left in the Fund after earmarking the amount for the process of restitution toeligible and identifiable investors may be utilised for the purposes of the Fund specified in sub-regulations(1) and (2):
Provided further that no claim for restitution from the disgorged amounts in a specific case shallbe admissible after a period of seven years from the date of invitation of claims for disgorgementin the said case by the Board.]
6. Conditions for Aid.
The aid to investors’ associations, as referred to in clause (d) of sub-regulation (2) of regulation 5, shall be given by the Board in accordance with the guidelines made by it and subject to the following conditions:-
(a) that the aid shall not exceed seventy five per cent. of the total expenditure on legal proceedings;
7Inserted by SEBI(Investor Protection and Education Fund) (Amendment) Regulations, 2014 w.e f. 09‐01‐ 2014.
(b) such aid shall not be considered for more than one legal proceeding in a particular matter;
(c) if more than one investors’ association applies for seeking legal aid, the investors’ association whose application is received first, shall be considered for such aid.
CHAPTER III ADVISORY COMMITTEE FOR THE FUND Constitution of the Committee.