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SEBIInsider trading and takeovers

Remittance of code violation amounts to the SEBI IPEF

The transfer to the SEBI Investor Protection and Education Fund of any amount a company collects from a designated person for breaching its insider trading code.

How this is timed

Remittance to the SEBI IPEF

Counted from collection of an amount from a designated person for a code of conduct violation

Regulator
SEBI
Category
Insider trading and takeovers
Form
Not specified
Last verified
2026-09-01

The duty is triggered by the collection, with no number of days in the rule. Clause 12 of Schedule B to the PIT Regulations requires amounts collected from a designated person for a code of conduct violation to be remitted to the SEBI Investor Protection and Education Fund. Paragraphs 4.2.3 and 4.2.4 of the Master Circular on Surveillance of Securities Market set out the payment route, which is the IPEF link on the SEBI homepage.

Deadlines counted from an event

These have no calendar date. The clock starts when the event happens.

Remittance to the SEBI IPEFfrom collection of an amount from a designated person for a code of conduct violation

Remit any amount collected for a code of conduct violation to the SEBI Investor Protection and Education Fund, through the payment route in paragraphs 4.2.3 and 4.2.4 of the Master Circular on Surveillance of Securities Market. Clause 12 names no period, so no date is computed.

The rule

Stated as the law states it, so you can work out any period yourself.

Remittance to the SEBI IPEF

Remit any amount collected for a code of conduct violation to the SEBI Investor Protection and Education Fund, through the payment route in paragraphs 4.2.3 and 4.2.4 of the Master Circular on Surveillance of Securities Market. Clause 12 names no period, so no date is computed.

Who must comply

  • Every listed company that has collected an amount from a designated person for a code of conduct violation

Carve-outs

  • Where the company takes non-monetary action only, there is nothing to remit

Statutory basis

Read the provision here where we hold it, or on the regulator's site.

Before you file

  • Establish the amount collected from the designated person.
  • Keep the record of the violation and the action taken.
  • Choose the payment method: net banking, NEFT or RTGS, debit card, or UPI.

How to file

  1. 1Open the IPEF payment link on the SEBI homepage.
  2. 2Pay the amount collected to the fund.
  3. 3Keep the payment confirmation with the violation record.
  4. 4Do not keep the amount in the company's own accounts.

SEBI Investor Protection and Education Fund payment link

If you miss it

Retaining an amount that clause 12 requires to be remitted is a contravention of the regulations, so section 15HB of the SEBI Act applies at up to ₹1 crore. The sweep establishes the obligation and the payment route rather than a separate consequence for a late remittance, so no other figure is quoted here.

  • An unremitted amount sits in the company's books as a benefit from its own designated person's breach, which is the appearance clause 12 exists to prevent

Recent changes affecting this

From the regulator's own circulars and notifications.

sebi15 May 2026Master circular

Master Circular on Surveillance of Securities Market

This Master Circular consolidates SEBI's regulatory framework for securities market surveillance, covering trading rules, monitoring of unauthenticated news, financial disincentives for Market Infrastructure Institutions (MIIs), and disclosure requirements under the SEBI (Prohibition of Insider Trading) Regulations, 2015. It mandates internal controls for market intermediaries to prevent the circulation of unauthenticated news and establishes a framework for financial disincentives when MIIs fail to meet surveillance obligations. The circular also details automated system-driven disclosures and the mandatory freezing of Permanent Account Numbers (PAN) for Designated Persons and their immediate relatives during trading window closure periods. Previous circulars listed in the appendix are rescinded, though actions taken under them remain valid.

Common questions

Can the company keep the amount it collects?

No. Clause 12 of Schedule B requires it to go to the SEBI Investor Protection and Education Fund.

How is the payment made?

Through the IPEF link on the SEBI homepage. Paragraphs 4.2.3 and 4.2.4 of the Master Circular allow net banking, NEFT or RTGS, debit card and UPI.

Last verified 2026-09-01. Confirm against the official source before you rely on it.