FRA to expand Investor Protection Fund to cover forced delistings

The Investor Protection Fund (IPF) will expand its coverage to stock market losses if a listed company is ordered by regulators to delist shares, according to updated regulations (pdf) published by the Financial Regulatory Authority.

An earlier version of the regs (pdf) issued in 2016 shows that the fund had only compensated investors if publicly traded companies went bankrupt or got into deep financial distress, or if it was proven that the investor’s losses were due to mismanagement, negligence or fraud on the part of the company.