Sebi asks exchanges to change norms on investor claims

The Securities and Exchange Board of india (Sebi) has asked stock exchanges to alter their byelaws to confirm capitalists area unit paid from their investor protection fund (IPF) if a mercantilism member or broker is expelled.

The current laws solely entertain claims just in case of broker defaults.

The issue arose once the animal disease exchange refused to pay cash from its IPF to aggrieved investors once the expulsion of Delhi-based broker Kassa Finvest last year. Its byelaws, it told them, allowed IPF cash to be used as long as a broker had defaulted.

However, the National stock market (NSE) began paying claims as a result of investors from its IPF last year, aforesaid a supply. animal disease owed solely a couple of crores to investors, as 70-80 per cent of transactions done by the broker were through NSE, accessorial the person. As of April last year, capitalist claims against Kassa Finvest reportedly amounted to concerning Rs a hundred and fifty large integer.

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