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Informist, Wednesday, Aug 14, 2024

 

MUMBAI – The National Stock Exchange has raised the maximum limit for investors' claims against defaulting or expelled brokers to 3.5 mln rupees from 2.5 mln rupees, the exchange said in a press note late on Tuesday. The limit is per investor per claim, and the payment will come from the Investor Protection Fund Trust, it said.

The increase will be effective immediately, the NSE said. The corpus has risen to 21.54 bln rupees as of Jul 31 from 19.92 bln rupees as of Mar 31, data from the NSE's website showed.

 

As per the rules, the fund gets used only if the defaulter broker's assets are not sufficient to meet the claims of the clients. The Securities and Exchange Board of India requires stock exchanges to add 3% of listing fees income to the corpus of their individual investor protection fund every year.

 

The payments from the fund are made only against claims filed by investors and not against outstanding credit balances of all the clients in the exchange's records. In 2024-25 (Apr-Mar) so far, the NSE has paid out or provided for claims of 162.7 mln rupees. In 2023-24, a total amount of 527.7 mln rupees was paid out from the investor fund, against 1.29 bln rupees in the previous year.  End

 

Reported by Rajesh Gajra

Edited by Manisha Baxla

 

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