The Investors' Protection Fund (IPF) Trust was established by erstwhile Lahore Stock Exchange Limited (LSE). In May-2013, with the permission of the Commission and the Board of Directors of LSE, its Trust Deed was registered under the applicable Trust Act, 1882. Subsequently, the Trust was registered under the newly implemented ‘Punjab Trust Act, 2020’.

In the year 2015, under the second phase of the Stock Exchanges Act, 2012, the three stock exchanges were entered into the Scheme of Integration, which was executed by January 11, 2016 under the Integration Order (SECP Order No. 1/2016) of the Commission. The Commission issued the amended Stock Exchanges (Corporatization, Demutualization and Integration) Regulations, 2012 dated, December 17th, 2015.

Under these Regulations, the Commission constituted the Funds Committee for LSE (replacing LSE) in a supervisory role to oversight of the Trust Funds of LSE and also nominated Members of the Committee. The Trust Deeds of respective Trust Funds were amended as per direction of the Commission under the above referred Regulations. The Trust Deeds, included the terms and conditions, bylaws of the Trusts. The composition of the Trustees of respective Trust Funds was also amended as per the Regulations and the Commission also appointed the new Trustees of respective Trust Funds.

The IPF Trust is entertaining all the claims and cases against the defaulted Members/TREC holders of erstwhile LSE prior to the date of Integration i.e., January 11, 2016 as well as the claims against the Ex-TREC holders of erstwhile LSE inducted by Pakistan Stock Exchange (PSX) relating the period prior to the Integration in accordance with relevant Regulations of erstwhile LSE.

Moreover, in consideration of continuity of business of the TREC holders, the Commission has also permitted the IPF Trust for provision of bank guarantees to PSX against the Base Minimum Capital (BMC) requirement of all the Ex-TREC holders of erstwhile LSE inducted by PSX. BMC requirement is being calculated as per the BMC regulations of PSX (as per Chapter 19 of PSX Rule Book) and reviewed and updated on monthly basis on the basis of Assets under custody of each TREC holder.