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Multi Commodity Exchange of India (MCX) has established and
maintains an Investor Protection Fund – ‘Multi Commodity Exchange Investor (Client) Protection Fund' (MCX IPF), with the objective of compensating investors in the event of defaulters' assets not
being sufficient to meet the legitimate/admitted claims of investors.
The maximum amount of compensation available against a single claim of an investor arising out of default of a member of exchange is presently Rs.2 Lakh (Rupees Two Lakh) besides the maximum available compensation being Rs.2 Crore (Rupees Two Crore) per defaulter member.
The exchange in consultation with IPF Trust has reviewed the present limits of compensation and has decided to revise as follows:
- The maximum amount of compensation available against a single claim of an investor is enhanced to Rs.25 Lakh (Rupees Twenty Five Lakh).
- The restriction in the form of maximum available compensation of Rs.2 Crore (Rupees Two Crore), payable against the claims, of all investors, that is crystallized against a defaulter member, is removed.
- The above revisions are applicable to only the claims arising from clients of SEBI registered member where the declaration of default of such member is on or after 24 January 2018.
However, the pre-revision maximum amount of compensation available shall continue to be applicable upon all claims against members where the declaration of default of member is prior to 24 January 2018 as well in case of non-SEBI registered members.
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