Investor Protection Fund (IPF) explained

Wed, 20 May 2026 00:00:00 +0000

The Investor Protection Fund (IPF) is a regulatory fund maintained by each Indian exchange (NSE, BSE, MCX) under SEBI’s mandate, to compensate investors when a broker member defaults. The IPF backstops the broker layer of the Indian capital market infrastructure.

What IPF does

IPF provides compensation to investors who:

Hold funds or securities with a broker that defaults.
Cannot recover those assets from the broker’s own resources.
File a claim within the prescribed window.

The fund’s purpose is to maintain investor confidence in the broker-mediated market and limit the systemic impact of any single broker default.

Zerodha insurance and Investor Protection Fund

Wed, 20 May 2026 00:00:00 +0000

Zerodha clients are protected against broker default by the Investor Protection Fund (IPF) maintained at each exchange (NSE, BSE). The protection cap is currently Rs 25 lakh per investor per broker per exchange, subject to revision by SEBI. Zerodha does not maintain a separate insurance policy; the protection is via the exchange-level IPF framework that applies to all brokers.

What IPF protects

IPF protection activates when:

The broker defaults (SEBI / exchange declares the broker unable to meet obligations).
Client funds or securities are missing at the broker.
The shortfall cannot be recovered via the broker’s own assets.

Coverage:

IPF on WebNotes

Investor Protection Fund (IPF) explained

What IPF does

Zerodha insurance and Investor Protection Fund

What IPF protects