Mumbai, July 14: NCDEX on Tuesday said it has established an investor protection fund that will be used to compensate investors in the event of defaulter's assets not being sufficient to meet the admitted claims, and for other purposes.
The Investor Protection Fund (IPF) is administered by way of a registered Trust created for the purpose, NCDEX said in a statement.
In the event of funds of a defaulter's member being insufficient, the IPF Trust, based on the recommendations of the relevant committee, compensates the admitted value of claims of an investor arising out of a defaulter member subject to a compensation limit, the exchange added.
The maximum compensation limit payable from the Exchange IPF has been revised from Rs 2.50 lakh to Rs 5 lakh with effect from February 12, 2020.
Such revision is applicable in respect of all claims settled out of Trust, where settlement is done post the date of revision of such limits, that is February 12, 2020.
The maximum amount of compensation available against a claim of an investor against a defaulter member would be the actual amount of claim or Rs 5 lakh, whichever is less, NCDEX added.