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INVESTORS or CUSTOMERS PROTECTION FUND (IPF)

In accordance with the guidelines issued by the Ministry of Finance, Government of India, Exchange has set up an Investor Protection Fund (IPF) on July 10, 1986 to meet the claims of investors against defaulter members. The Fund is managed by trustees appointed by the Exchange. The members at present contribute Rs.1.50 per Rs.10 lakhs of turnover which is debited to their general charges account in the monthly bills. The Stock Exchange contributes on a quarterly basis 2.5% of the listing fees collected by it. Also the entire interest earned by the Exchange on 1% security deposit kept with it by the companies making public/rights issues is credited to the Fund to augment its corpus. Further, as per the recent SEBI decision, auction proceeds in certain cases, where price manipulation / rigging was involved, have been impounded and transferred to the Investor Protection Fund. As at the end of June 2000, the corpus of the Fund was Rs. 96.03 crores. The maximum amount presently available to an investor from this Fund in the event of default by a member is Rs.5.00 lakhs. This has been progressively raised from Rs.5,000/- in 1988 to the present level and is one of the highest among the Stock Exchanges in the country. The claims of investors against a defaulter-member are scrutinised by the Defaulters Committee, a statutory committee constituted by the Exchange, to ascertain their genuineness, etc. After distribution of assets of the defaulter-member, the shortfall, if any, in the claims of investors is met from the Fund subject to a maximum of Rs.5.00 lakhs per investor.   Home Media  NewsPapers  Television   Radio   Magazines Government   Geography   Maps States&UTs History Travel Art&Culture    Art Dance Theatre  Music Jewellery   Festivals Astrology Business  CreditCards   Tax Career Banks StockExchange    NSE   BSE  Entertainment   Bollywood    Tollywood    Movies Music  Food Shopping Sports Cricket   Tennis   Golf  Adventure Sports  National Info.  © 2000 V&K Softech Limited. All Rights Reserved.