The maximum sum that can be paid out of the Investor Protection Fund Trust has been raised to Rs 35 lakh, according to a Tuesday announcement from the National Stock Exchange (NSE).
This cap will be in place for claims made against trading members who have been expelled or deemed defaulters.
The maximum allowable limit against a single claim has raised from Rs 25 lakh to Rs 35 lakh per investor per claim as per the exchange byelaws, according to the Investor Protection Fund Trust (IPF), the NSE said in a statement.
To compensate investors if defaulters’ assets are insufficient to cover their acknowledged claims, the NSE established the Investor Protection Fund. It also strives to promote investor education, awareness, and research.
