MUMBAI, 14 July 2020: With an objective of compensating investors in the event of defaulter’s assets not being sufficient to meet the admitted claims of investors, NCDEX which has established an Investor Protection Fund (IPF) has revised it compensation to INR 5 lakh.
"In the event of funds of Defaulter’s member being insufficient, the Investor Protection Fund 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 maximum compensation limit payable, from the Exchange Investor Protection Fund (IPF) has been revised from INR 2.50 lakh to INR 5.00 lakh with effect from 12 February 2020, NCDEX, a leader in agri commodities trading said in a statement.
"Such revision is applicable in respect of all claims settled out of Trust, wherein settlement is done post the date of revision of such limits 12 February 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 INR 5.00 lakh whichever is less," the statement reads.
The Investor Protection Fund is administered by way of registered Trust created for the purpose.