Investor Service Fund (ISF) and Investor Protection Fund (IPF)

Investor Service Fund

In terms of SEBI directives, the Exchange has set up Investor Service Fund (ISF) to be utilized mainly for purposes stipulated below:

• Conducting various investor education/awareness programs;
  
• Capacity building programs
• Maintenance of all price ticker boards 
• Providing minimum facilities at Investor Service centers including costs financial newspapers, receiving and recording complaints, giving counselling services to investors etc.
•  Training programs aimed at enhancing securities market literacy and promoting participation in the commodity derivatives market. 
  
• Infrastructure facilities such as telephones, photocopiers, printers, scanners, and furniture at the Investor Service Center.
• In any other manner as prescribed / permitted by SEBI from time to time.
  
  

Contribution to ISF

1% percent of the turnover fees charged by the exchange from its members on monthly basis, subject to minimum of Rs.10 lakh in a Financial Year.

Investor Protection Fund Trust

NCDEX has established an Investor Protection Fund (IPF) with an objective of compensating investors in the event of defaulters' assets not being sufficient to meet the admitted claims of investors, promoting investor education, awareness and research. The Investor Protection Fund is administered by way of registered Trust created for the purpose.  The members of the Trust are as under:

• Mr. Prem Kumar Malhotra - Chairman of the Trust and Public Interest Director of NCDEX
• Mr. R. Amalorpavanathan - Public Interest Director of NCDEX
  
• Mr. Hemant Adarkar - Public Interest Director of NCDEX
  
• Mr. Ashok Dhere - Representative from Investor Associations
  
• Ms. Seema Nayak - Chief Compliance Officer of NCDEX
  

The Investor Protection Fund Trust, based on the recommendations of the Member and Core Settlement Guarantee Fund Committee compensates the investors to the extent of funds found insufficient in Defaulter member's account to meet the admitted value of a single claim of an investor arising out of defaulter member, subject to a maximum limit of Rs. 5.00 lakh. The maximum amount of compensation available against a claim of an investor against a defaulter member would be the actual amount of claim or Rs. 5.00 lakh whichever is less.

Policy and guidelines on processing Investor Claims from IPF is available on the website under the below link www.ncdex.com/investor services/defaulter member

Circulars for IPF & ISF: