NSE Increases Maximum Claim Limit from Investor Protection Fund to Rs 35 Lakh
The National Stock Exchange (NSE) has raised the maximum claim limit from its Investor Protection Fund Trust from Rs 25 lakh to Rs 35 lakh per investor per claim. This move aims to enhance financial protection for investors affected by trading members who have either defaulted or been expelled.
The updated limit will be applicable to claims made against these defaulters or expelled members, effective from the date of this announcement. The NSE's statement confirms that this adjustment adheres to Chapter XIII of the Exchange Byelaws, Clause 15, which outlines the regulations for the Investor Protection Fund Trust (IPF).
The IPF Trust was created to compensate investors when defaulters' assets are inadequate to cover their claims, and to support initiatives in investor education, awareness, and research.
Additionally, the NSE has achieved a significant milestone, with its unique registered investor count exceeding ten crore for the first time. The total number of client accounts on the exchange now stands at 19 crore.
On the performance front, the NSE’s benchmark Nifty 50 index has yielded an 11.8 percent return so far this fiscal year (as of July 31), while the Nifty 500 index has achieved a strong 16.2 percent gain during the same period. Over the past five years ending in July, the annualized returns for the Nifty 50 and Nifty 500 indices were 17.5 percent and 21.1 percent, respectively.
For the April-June quarter of FY25, the NSE reported a net profit of Rs 2,567 crore, marking a 39 percent increase from the previous year. The exchange also saw a 51 percent rise in consolidated revenue from operations, reaching Rs 4,510 crore for Q1 FY25.
