Mr. Lawrence Fubara Anga, Vice Chairperson, IPF Board of Trustees, in a dialogue with journalist at the NSE on Monday confirmed N1.69 billion as the actual value of loss verified by 379 claimants to the Investors protectors’ fund.
However 154 of the 379 claimants have been verified by Identity Consultants and approved for payment by the Board, of which 81 of them will be paid the full value of the loss of their investment while 73 of them will receive below full value of the loss of their investment.
Anga, who said that the board in accordance with the rules of the fund set a maximum compensation amount of N400, 000.00 per claimant, explained that the total amount approved by the board as compensation payment to the 154 investors is N40, 627,397.
He said, that as at 17th August 2015, a total of N7.3million has been paid to 23 investors.
Explaining that the maximum amount of claim made by an investor is N185 million while the minimum claim is N1,400.
Also, the Chief Executive Officer of the NSE, Mr. Oscar Onyema explained that the payment took a longer time because of legal backing and process of identifying beneficiaries.
He said that the board had to present rules and regulations governing the fund to the public before finalising it.
These 154 investors are being compensated for defalcation committed by 29 dealing member firms of the exchange who are either inactive or have been expelled as members of the Exchange.
The IPF is a statutory fund established pursuant to Section 197 of the ISA to compensate investors who suffer pecuniary loss arising from the revocation or cancellation of the registration of a dealing member firm by the Securities and Exchange Commission (SEC).
Others include insolvency, bankruptcy or negligence of a dealing member firm of the exchange as well as 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 or deemed received by the dealing member firm in the course of its business as a dealing member firm.
Daily Times
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