CBDT Notifies Income Tax Exemption To Multi Commodity Exchange Investor (Client) Protection Fund Trust

The Central Board of Direct Taxes (CBDT) has notified the income tax exemption to Multi Commodity Exchange Investor (Client) Protection Fund Trust under Section 10(23EC) of the Income Tax Act.

“In exercise of the powers conferred by sub-section (23EC) of section 10 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby specifies the Multi Commodity Exchange Investor (Client) Protection Fund Trust set up by Multi Commodity Exchange of India Limited, Mumbai for the purposes of the said clause for the assessment year 2014-15,” the notification read.

MCX has established the “Multi Commodity Exchange Investor Protection Fund” with the objective of compensating investors in the event of defaulters' assets not being sufficient to meet the admitted claims of investors, promoting investor education and awareness. The maximum compensation limit per investor per defaulter member, if payable, from the Exchange’s Investors’ Protection Fund (IPF) has been revised from Rs.2 lakh to Rs.25 lakh (Rupees Twenty Five Lakh only). Further, the member-wise limit of Rs.2 crore per defaulter member payable from IPF has been removed. The revised compensation limits will be applicable for the claims arising from the investor of only SEBI-registered members declared defaulters on or after January 24, 2018. Further, the limits of Rs.2 lakh per investor per defaulter member and Rs.2 crore per defaulter member shall continue to be applicable for claims against members declared defaulter prior to January 24, 2018 and for non-SEBI registered members.

Notification No.77 /2023

Date: 12/09/2023

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