Investor Protection Fund (IPF): Who Qualifies and What You Get
Learn how the Investor Protection Fund compensates you if your broker defaults on their obligations.
The Investor Protection Fund (IPF) is a safety net designed to provide compensation to investors who suffer financial losses because their broker fails to meet their legal obligations.
Who it's for
This fund is for investors who lose money specifically due to a broker's default.
What you get
You can receive compensation for your losses, up to a certain limit set by the exchange. The exact amount you are eligible to receive depends on the specific rules of the exchange involved.
What it costs you
There is no cost to use this scheme. However, you must file your claim within a specific timeframe to be eligible for compensation.
The catch to know
The fund does not cover losses caused by poor investment decisions or bad trading calls. It is strictly for losses resulting from a broker's failure to fulfill their duties.
How to apply
- Identify if your loss was caused by a broker default rather than market movement.
- Gather all necessary documentation regarding your trades and the broker's failure.
- Follow the claim filing process through your stock exchange.
- Check with your specific exchange for their current compensation limits and timelines.