- Due to financial losses caused by some dealing members of the Nigerian Stock Exchange (NSE), 158 investors are to get over N42 million as compensation from the Investors’ Protection Fund (IPF).
- This was disclosed in a statement issued Wednesday in Lagos by the Board of Trustees of the Fund, which was established by NSE, primarily, to compensate investors who suffer pecuniary loss.
- The Board of Trustees, in accordance with the Rules of the Fund, set a maximum compensation amount of N400 thousand per claimant. The total amount approved by the Board of Trustees as compensation payment to the 158 investors is N42, 227,397. “The claimants were found to be eligible for compensation in accordance with the relevant provisions of the ISA and the Investors’ Protection Fund Rules.” the statement adds.
- The IPF is a statutory fund established pursuant to Section 197 of the ISA to compensate investors who suffer pecuniary loss arising from the revocation or cancellation of the registration of a dealing member firm by the Securities and Exchange Commission (SEC); insolvency, bankruptcy or negligence of a dealing member firm by the Exchange and defalcation committed by a dealing member firm or any of its directors, officers, employees or representatives in relation to securities, money or any property entrusted to, or received or deemed received by the dealing member firm in the course of its business.
- The 158 investors are being compensated for defalcation committed by 29 dealing member firms of the Exchange who are either inactive or have been expelled as members of the NSE.
Source: Daily Sun