NSE Raises Maximum Claim Limit from Investor Protection Fund to Rs 35 Lakh
The National Stock Exchange (NSE) has announced an increase in the maximum claim limit from its Investor Protection Fund Trust, raising it from Rs 25 lakh to Rs 35 lakh per investor per claim. This adjustment aims to offer greater financial security to investors affected by defaulters or expelled trading members.
The revised limit will apply to claims against trading members who have been declared defaulters or expelled, effective from the date of this announcement. According to the NSE’s statement, the enhancement is in line with Chapter XIII of the Exchange Byelaws, Clause 15, which governs the Investor Protection Fund Trust (IPF).
The Investor Protection Fund Trust was established to compensate investors when the assets of defaulters are insufficient to meet their claims. The fund also plays a role in promoting investor education, awareness, and research.
In addition to this development, the NSE has achieved a significant milestone, with its unique registered investor base surpassing the ten-crore mark for the first time. The total number of client codes registered with the exchange now stands at 19 crore.
Performance-wise, the NSE’s benchmark Nifty 50 index has delivered a return of 11.8 percent for the fiscal year to date (as of July 31), while the Nifty 500 index has reported a notable 16.2 percent gain over the same period. Over a five-year horizon 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, reflecting a robust 39 percent year-on-year increase. The exchange also saw a 51 percent rise in consolidated revenue from operations, reaching Rs 4,510 crore for Q1 FY25.