NSE IPF Paid Rs1,118 Crore To Settle 70,897 Claims of Investor-clients of Top-10 Defaulting Brokers, Including Karvy, BMA Wealth, Anugrah
Moneylife Digital Team 26 August 2024
The National Stock Exchange (NSE) has paid Rs1,118 crore towards settling 70,897 claims filed by investor clients of the top-10 defaulting brokers out of its investor protection fund (IPF) trust from 1 January 2019 to 22 August 2024. As expected, investor clients of Karvy Stock Broking Ltd filed the maximum number of claims and received Rs448 crore from the IPF.
 
Data shared by NSE shows that during the past five years and eight months, 63,896 clients of defaulting brokers have filed over 100,000 claims seeking a refund of Rs4,969 crore. IPF trust of NSE settled 70,897 claims worth Rs1,118 crore. Further 5,732 claims worth Rs58 crore are approved but not yet released by IPF.
 
Besides Karvy, the other top defaulter brokers, whose investor clients received the maximum money from IPF, are: BMA Wealth Creators Ltd, Guiness Securities Ltd, Anugrah Stock & Broking Pvt Ltd, Fairwealth Securities Ltd, Arcadia Share & Stock Brokers Ptd Ltd, Vrise Securities Pvt Ltd, Modex International Securities Ltd,  Action Financial Services (India) Ltd and Quantum Global Securities Ltd.
 
BMA Wealth Creators's 11,172 investor clients have filed 17,156 claims worth Rs465 crore. However, the IPF admitted 14,781 claims worth Rs217 crore. Further, 220 claims worth Rs1 crore were sanctioned but not yet released.
 
According to data shared by NSE, 3,454 investor clients of Anugrah Stock & Broking filed 5,097 claims worth Rs1,383 crore. In value terms, it is the second largest amount claimed by investor clients of defaulting brokers from the IPF. However, only 2,593 claims worth Rs189 crore were found eligible during the scrutiny. NSE paid Rs187 crore towards settling 2,528 claims. About 65 claims worth Rs2 crore are sanctioned but have not yet been released by IPF for the clients of Anugrah. 
 
 
As of 31 July 2024, NSE's IPF trust has a corpus of Rs2,153.94 crore and paid Rs16.27 crore to investors during this period in the first four months of FY24-25. 
 
Earlier this month, NSE increased the ceiling amount payable out of the IPF trust to Rs35 lakh from Rs25 lakh per investor per claim. This limit is applicable for claims received against the trading members (TM) who have been declared defaulters or have been expelled, the Exchange says. (Read: NSE Increases Investor Claim Amount to Rs35 Lakh from Rs25 Lakh Per Claim)
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