What Kind Of Fund Gives Safety For The Clients?

investor protection fund

There are the many mutual fund schemes are available for the investors that are favorite for the tax deductions and huge returns. This investor protection fund is also a famous one. The clients can able to get compensation for the investment they have made. But there is a limit for the repay available provided by the stock exchange.  This is done according to the discussion of IPF trust. The limitation of the money should not be less than the one lakh during a single claim for the case of major firms like the BSE and NSE. For the others, it should not be less than the fifty thousand rupees.

What is the investor protection fund?

This kind of fund is much useful one for the depositors as they can able to claim from them more easily. The repayment of the fund can be asked by the clients easily to the interconnected stock exchange as they will help the clients to get the desired amount that the brokers have failed to give. The repaid amount may have some amount limited as per the rules and regulations but this will be more beneficial and trustworthy for the investor is to get the repayment completely. 

You can get the compensation as per the ministry of the finance terms and conditions. In this fund, the s will charge less than one percent of the turnover fee from the brokers. The SEBI norms are followed by the stock exchanges and so the fund is completely free from any liabilities. The fines that are charged by this IPF will not include the settlement related penalties. 

This will be much helpful for their receivers and also the brokers cannot able to cheat anything with the help of this fund. This is much helpful for new clients as they can able to get the relevant repayment within less time. The SEBI has to give permission for the NSE, BSE or the others to consult with the IPF trust and then make the necessary repayment. 

What is the guidance provided for the investors to invest in IPF?

  • In this investor protection fund only the retail customers are allowed to get the compensation. This kind of rule has obtained a huge response.
  • The time is also the necessary one to note by the investors. Because if they have claimed the repayment above the three years of the expiry date then it will be useless and this kind of situation will be dealt with a civil dispute. 
  • It is also improving to know that even though the compensation is provided by the IPF it will not exceed the maximum amount that is set by the client. 
  • Since only the interest amount can be used by the board of exchanges that too after the approval of the trust. Thus the board of exchanges will have no chance of getting any other fund.

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