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Ceiling amount payable out of NSE’s Investor Protection Fund Trust now Rs 35 lakh

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Shillong, August 14: The National Stock Exchange (NSE) has increased the maximum permissible limit against a single claim from the current amount of Rs 25 lakh to Rs 35 lakh per investor per claim out of its Investor Protection Fund Trust.

 

In a statement, the exchange said the limit will be applicable for claims received against the trading members, who have been declared defaulter or have been expelled.

 

“As per Chapter XIII of the Exchange Byelaws, Clause 15, the Investor Protection Fund Trust (IPF) has increased the maximum permissible limit against a single claim from the current amount of Rs. 25 Lakh to Rs. 35 Lakh per investor per claim,” said the NSE.

 

It further said that this limit shall be applicable for claims received against the trading members who have been declared defaulter or have been expelled “from the date of this press release”.

 

The Investor Protection Fund Trust was established with the objective of compensating investors in the event of defaulters’ assets not being sufficient to meet the admitted claims of investors, promoting investor education, awareness and research.

 

Meanwhile, the unique registered investor base on the exchange has crossed the ten-crore mark for the first time. The total number of client codes (accounts) registered with the leading exchange stands at 19 crore.

 

According to the exchange, the benchmark Nifty 50 index has generated a return of 11.8 per cent in this fiscal year (as of July 31). The Nifty 500 index has delivered a strong 16.2 per cent gain during the same period.

 

Annualised return over the five-year period ending July has been 17.5 per cent and 21.1 per cent for Nifty 50 and Nifty 500, respectively.

 

Also, the NSE reported a net profit of Rs 2,567 crore for the April-June quarter (Q1 FY25), up by 39 per cent (year-on-year). The leading exchange reported consolidated revenue from operations at Rs 4,510 crore for Q1 FY25, up by 51 per cent (year-on-year). (IANS)

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