CSE INVESTORS' PROTECTION FUND

What protects you if your broker company becomes insolvent or it goes for winding up? That's why the CSE Investors’ Protection Fund exists. The CSE, in collaboration with its TREC Holder companies established CSE Investors’ Protection Fund in 2000 to compensate within define limits, the claims of the Client against defaulting broker. You, the investor, pay no fees for getting protection of the fund. Coverage is automatic when you open an account with a CSE TREC Holder. However, you must lodge the claims to the Trustees within 6 months from the date of declaring defaulter of the TREC Holder.

What backs up this Protection? The fund is managed and controlled by a Board of Trustees as constituted under Chittagong Stock Exchange (Investors’ Protection Fund) Regulations, 2014.

CSE contributed Tk. 0.5 million as initial contribution to the fund. CSE also contribute on quarterly basis to the Fund as its contribution the amount representing 0.50% (point five zero percent) of the listing fee received by the CSE during the immediately preceding quarter placed in the Fund immediately after closure of each quarter. CSE TREC Holder makes periodicals contribution to the fund at the rate of Tk. 1.00 for every Tk. 10.00 lakh of their respective transactions. Participants in the fund for TREC Holder are compulsory.

There is a limit on the amount of coverage. The compensation paid to an individual investor shall not exceed a sum of Tk. 500,000/- (Taka five lakh) only. The Board of Trustee(s) may, however, at any time, in consultation with the Board, and with the approval of the Commission or as per directive of the Commission, increase the maximum limit of compensation payable as aforesaid.

Please Click Here to View IPF Regulations 2014