Q. How do exchanges provide safety to retail investors?
A. The BSE has built an investor protection fund over the past several decades. Every time someone transacts, 0.001% of the transaction value goes to this fund. Today, this pool has swelled to more than Rs 550 crore. In case a broker defaults before giving investors money or stocks, the BSE offers up to Rs 15 lakh per investor. You can compare this to a bank deposit where the insurance offered is just Rs 1 lakh.
Says : Ashish Chauhan, Chief Executive Officer and Managing Director, Bombay Stock Exchange
A. The BSE has built an investor protection fund over the past several decades. Every time someone transacts, 0.001% of the transaction value goes to this fund. Today, this pool has swelled to more than Rs 550 crore. In case a broker defaults before giving investors money or stocks, the BSE offers up to Rs 15 lakh per investor. You can compare this to a bank deposit where the insurance offered is just Rs 1 lakh.
Says : Ashish Chauhan, Chief Executive Officer and Managing Director, Bombay Stock Exchange