The BSE Investor Protection Fund (IPF), established on July 10, 1986, aims to provide
financial relief to investors when trading members default. Beyond financial compensation,
the BSE IPF also plays a crucial role in promoting investor education and awareness.
It collaborates with SEBI and other Market Infrastructure Intermediaries (MIIs)
to conduct Investor Awareness Programs (IAPs) across India in multiple languages,
ensuring broader reach and engagement with the investor community.
These efforts include partnerships with schools, colleges, universities, and professional
organizations to spread financial literacy and provide educational materials for various
events and conferences.
The objectives of the IPF include not only protecting investors but also evangelising
awareness and educational activities. This is done through the preparation and publication
of static as well as dynamic educational content, including digital and social media content.
The fund is governed not only by its Trust Deed but observes extant SEBI guidelines.
It has oversight by five trustees, including three Public Interest Directors of BSE,
one representative from a SEBI-registered investors association and the Chief Regulatory
Officer of BSE, ensuring a balanced and effective governance structure.”
Compensation to Clients of Defaulter Members:
In case of Default by BSE Trading Member, BSE IPF compensates clients of such
Defaulter Trading Member maximum upto Rs. 15 lakhs per client.
Form
for lodging claim against Defaulter/Expelled Member & Checklist
Norms
for eligibility of claims for compensation from IPF to the clients of the defaulter
member
Monetary relief to the investors, during the course of pendency of proceedings:
“BSE IPF provides monetary relief to the investors, during the course of pendency of proceedings against trading members as per the guidelines issued by SEBI.
IPF has a corpus of Rs. 642.71 crore as on 31.08.2023. This includes Auction proceeds along with interest thereon retained as advised by SEBI. Further, SEBI vide its circular no.SEBI/HO/CDMRD/DEICE/CIR/P/2016/94dated September 26, 2016, addressed to all National Commodity Derivatives Exchanges provided guidelines and broad framework regarding constitution and management of an Investor Protection Fund (IPF) for Commodity Segment.
Thereafter, SEBI vide its circular No. CIR/CDMRD/DEICE/CIR/P/2017/53 addressed to all National Commodity Derivatives Exchanges, modified certain provisions of the above mentioned SEBI circular dated September 26, 2016.
"The Exchange has created a separate IPF for its Commodity Derivatives Segment having a corpus of Rs. 0.62 crore as on 31.08.2023."
BSE IPF also provides monetary relief to the investors, during the course of pendency of proceedings against trading members as per the guidelines issued by SEBI. Under the guidance from SEBI, the Exchange has created a separate IPF for its Commodity Derivatives Segment having a corpus of Rs. 0.62 crore as on 31.08.2023.
BSE IPF also provides monetary relief to the investors, during the course of pendency of proceedings against trading members as per the guidelines issued by SEBI. Under the guidance from SEBI, the Exchange has created a separate IPF for its Commodity Derivatives Segment having a corpus of Rs. 0.62 crore as on 31.08.2023. BSE IPF along with SEBI and other Market Infrastructure Intermediaries (MIIs) does several Investor Awareness Programs (IAPs) throughout the length and breadth of India, in English, Hindi and many other regional languages to achieve a better connect with the investors. In 2020-21 we did 6898 IAPs and in 2021-22 we hope to cross 8500 programs across India. Through IPFs large and robust network of resource persons, we reach out to a broad range of schools, colleges, universities and others. We also collaborate with professional Institutes, Associations, Industry bodies etc and offer support and educational material, and other content for events, conferences etc.”
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