The NSE Investor Protection Fund Trust (IPFT) is a fund created by the National Stock Exchange of India to protect investors from losses due to defaults by brokers. IPFT charges will be reflected in your contract note.
As per NSE circular ref No: NSE/F&A/18608 and NSE/FA/56129, dated August 12, 2011, & March 24, 2023, the charges in the NSE Investor Protection Fund Trust (IPFT) for Equities Cash, Equity Future & Options, and Currency segment have been revised.
Please find the below-revised charges computed in Rs. per crore tabulated below, effective from April 1, 2023: -
- **Segment**: Equity Cash | **Revised Charges**: Rs 10 | **Remarks**: Computed on traded value.
- **Segment**: Equity Futures | **Revised Charges**: Rs 10 | **Remarks**: Computed on traded value.
- **Segment**: Equity Options | **Revised Charges**: Rs 50 | **Remarks**: Computed on premium value.
Benefits of NSE Investor Protection Fund Trust (IPFT): -
- Protection from losses due to broker defaults: The IPFT can compensate investors who lose money due to a broker default. The maximum amount an investor can receive from the IPFT is Rs 25 lakhs.
- Easy to access: To be eligible for compensation from the IPFT, an investor must have filed a claim with the NSE within 90 days of the default. The NSE has a simple and easy-to-use process for filing claims.
- Increased confidence: The IPFT can help to increase investor confidence in the stock market. Investors know that if a broker defaults, they may be able to recover their losses through the IPFT.
- Reduced risk: The IPFT can help to reduce the risk of loss for investors. Investors may be more willing to invest in the stock market because a fund is available to compensate them if a broker defaults.