Markets watchdog Sebi today said the proceeds from the sale of written-off securities held by non-operating foreign portfolio investors would need to be credited to Investors Protection and Education Fund of the regulator within seven days from the date of receipt.
Besides, the regulator said corporate benefits received in form of cash or dividend would also be credited to the Investors Protection and Education Fund not later than seven days from the date of receipt of the same.
"Corporate benefits received in the form of cash viz dividend shall be credited to the Investors Protection and Education Fund of Sebi not later than seven days from the date of receipt of the same," Sebi said in a circular.
So far, these proceeds are needed to be credited to the IPEF of the concerned stock exchange.
"In case, a custodian is unable to deliver the securities or ascertain the claimant for the securities that are received subsequent to write off due to any unforeseen circumstances...
the sale of these securities through stock exchange and proceeds thereof net of expenses shall be credited to the IPEF not later than seven days from the date of receipt thereof," the circular said.
With regard to corporate benefits, the regulator said, "in case of receipt of corporate benefits in the form of securities arising out of shares written off, the same shall be reported to Sebi in the normal manner".
As per the norms, written-off securities are sold through the stock exchange in case custodian is unable to deliver securities or ascertain the claimant for securities.
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