Defaulters' Committee Section
The Member and Core Settlement Guarantee Fund Committee (formerly Defaulters' Committee) is a statutory Committee of the Exchange set up to administer the assets in respect of the defaulters /expelled members vesting in the Exchange.
The Member and Core Settlement Guarantee Fund Committee ( formerly Defaulters' Committee) calls in and realises the security deposits in any form, margin money, other amounts lying to the credit of and securities deposited by the defaulter and recover all moneys, securities and other assets due, payable or deliverable to the defaulter by any other Trading Member in respect of any transaction or dealing made subject to the Bye-laws, Rules and Regulations of the Exchange and such assets shall vest ipso facto, on declaration of any trading member as a defaulter, in the Exchange for the benefit of and on account of any dues of the Exchange, National Securities Clearing Corporation Limited,Securities and Exchange Board of India, other trading members, Constituents and registered sub-brokers of the defaulter, approved banks and any other persons as may be approved by the Member and Core Settlement Guarantee Fund Committee ( formerly Defaulters' Committee) and other recognised stock exchanges.
The Member and Core Settlement Guarantee Fund Committee (formerly Defaulters' Committee) distributes the amount available in the defaulter's account to the admitted claims on pro-rata basis as per the priority laid out under its Rules/Regulations/Bye-Laws of the Exchange.
All claims submitted by investors of defaulter/expelled Trading members will be evaluated in accordance with the Rules, Byelaws, Regulations, guidelines etc. of the Exchange and SEBI circulars. The maximum compensation limit per investor is Rs.25 lakhs out of Investor Protection Fund. The policy for evaluation of claims is given herewith:
The SOP for handling claims against defaulter/expelled members is as below,
- For lodging claim against defaulter/expelled member, kindly visit the portal