The correct answer is: B. Investor Reimbursement Fund (IRF)
The Investor Reimbursement Fund (IRF) is a fund maintained by the National Stock Exchange (NSE) to make good investor claims, which may arise out of non-settlement of obligations by the trading member, who has been declared defaulter, in respect of trades executed on the exchange.
The IRF is a corpus of money collected from all trading members of the NSE. The amount collected is based on the trading turnover of each member. The IRF is managed by a Board of Trustees, which is appointed by the NSE.
The IRF is used to settle claims of investors
who have suffered losses due to the default of a trading member. The claims are settled on a first-come, first-served basis. The maximum amount that can be claimed from the IRF is Rs. 2 lakh.The IRF is a safety net for investors who trade on the NSE. It provides a guarantee that investors will not lose their money even if a trading member defaults.
The other options are incorrect because:
- Option A: Investor Education and Reimbursement Fund (IERF) is a fund maintained by the Securities and Exchange Board of India (SEBI) to provide financial assistance to investors who have suffered losses due to fraud or unfair trade practices.
- Option C: Investor Education and Protection Fund (IEPF) is a fund maintained by the SEBI to educate investors about the securities market and to protect them from fraud and unfair trade practices.
- Option D: Investor Protection Fund (IPF) is a fund maintained by the SEBI to provide financial assistance to investors who have suffered losses due to the default of a stockbroker.