The Securities & Exchange Board of India (Sebi), which plans to set up a fund for protection of investors and educating them, on Tuesday, put out a consultative paper ‘Draft Securities & Exchange Board of India (Investor Protection & Education Fund) Regulations, 2008’  seeking feedback from the public to be sent on or before April 10, 2008.

The fund, to be created with a corpus of Rs 10 crore out of Sebi General Fund, will be funded by fines and penalties recovered by Sebi.  The Joint Parliamentary Report on Securities scam of 2001 had recommended setting up investor education and protection fund under section 205A of Companies Act and investor education resources of RBI shifted to Sebi and joint campaign for investor education and awareness be undertaken. “This will bolster confidence among retail investors who should be key drivers of the capital market,” said the Finance Minister in his Budget Speech for the year 2006-07.