Investors Protection Fund (IPF)

Overview

MCX has established “Multi Commodity Exchange Investor Protection Fund” 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 and awareness.

Objectives

  • a) to protect and safeguard the interest of investors/clients, in respect of eligible/legitimate claims arising out of the default of the member of the Exchange;
  • b) to impart investor/client education, awareness, research or such other programmes as may be decided by the SEBI and/ or the Exchange from time to time out of the interest earned on investments of the Fund; and
  • c) to provide monetary relief to investor during the course of pendency of proceedings, as per the guidelines / circulars issued by SEBI from time to time;
  • d) to undertake such other activity which is ancillary to and in furtherance to the aforesaid objects of the Trust;
  • e) to do such other lawful acts, deeds, things as are incidental, conductive and necessary for the attainment of the aforesaid objects but subject to the guidelines/directions issued by SEBI from time to time.

Threshold Limits

The maximum compensation limit per investor per defaulter member, if payable, from the Exchange’s Investors’ Protection Fund (IPF) has been revised from Rs.2 lakh to Rs.25 lakh (Rupees Twenty Five Lakh only). Further, the member wise limit of Rs.2 crore per defaulter member payable from IPF has been removed. The revised compensation limits will be applicable for the claims arising from the investor of only SEBI-registered member declared defaulter on or after January 24, 2018. Further, the limits of Rs.2 lakh per investor per defaulter member and Rs.2 crore per defaulter member shall continue to be applicable for claims against members declared defaulter prior to January 24, 2018 and for non-SEBI registered members.

Need Assistance?

Please contact

022-6731 8888
022-6649 4151

Client
Complaint
Form (CCF)