National Commodity and Derivatives Exchange (NCDEX) has increased the maximum compensation limit paid from the Investor Protection Fund to ₹2.5 lakh from ₹1 lakh from May 20. The higher compensation limit will be applicable only to claims made after May 20, said the exchange in a statement on Monday.
The IPF was set up in line with SEBI regulations to compensate investors in the event of defaulters’ assets not being sufficient to meet the claims of investors besides promoting investor education, awareness and research. IPF is administered by a registered Trust created for the purpose.
Based on the recommendations of the relevant Committee, the IPF Trust compensates investors to the extent of funds found insufficient in the defaulted member’s account to meet the admitted value of a single claim of an investor.