By InvestAdvocate
Lagos (INVESTADVOCATE)-The Nigeria Stock Exchange (NSE) Tuesday said it has concluded arrangements to inaugurate the Board of Trustee of the Investor Protection Fund.
According to the NSE, the event will take place on Friday September 21 2012 at its Council Room, Stock Exchange House in Lagos Nigeria.
Part XIV of the Investment and Securities Act 2007, (CAP 124, LFN, 2004) (“ISAâ€ÂÂ) requires the Nigeria’s Exchange to establish and maintain an IPF.
The NSE has an investor protection fund, up until the proposed inauguration; the Fund is not presently operational.
The Nigeria’s Exchange affirmed that the purpose of the IPF is to compensate investors with genuine claims of pecuniary loss against Dealing Member Firms resulting from insolvency, bankruptcy or negligence of a Dealing Member Firm of a Securities Exchange or Capital Trade Point.
Another reason for setting up the IPF is the 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 by the Dealing Member Firm in its course of business as a Capital Market Operator.
