How to Claim Compensation From PSX if Your Stockbroker Defaults in Pakistan: Up to Rs 1 Million
If a stockbroker defaults, the PSX fund can pay up to Rs 1,000,000 per claimant. See when claims open, the six steps and who pays first. Read before you invest.
If a stockbroker in Pakistan defaults, the Pakistan Stock Exchange (PSX) can pay you up to Rs 1,000,000 from its Centralized Customers Protection Compensation Fund (CCPF). The claim opens only after PSX declares the broker a defaulter. You then file a claim form with PSX's Regulatory Affairs Division.
Most investors never think about this fund until a brokerage house stops paying out. We opened the PSX investor pages on 15 October 2026 and read the fund's rules as PSX states them. The fund is narrow, so it helps to know exactly what it covers before you need it.
The CCPF pays up to Rs 1,000,000 per claimant after a broker default
The fund exists for one job only. PSX says its sole mandate is to compensate customers of a defaulter stockbroker, up to a maximum of Rs 1,000,000 per claimant, and only for claims that PSX has admitted. It does not cover market losses.
The fund was formerly called the Investor Protection Fund. It runs under the Customers Compensation Fund (Establishment and Operations) Rules, 2017 and the CCPF Regulations, 2017, both issued by the Securities and Exchange Commission of Pakistan (SECP). A falling share price is never a CCPF claim. A broker that cannot return your money or shares is.
| Item | What PSX says |
|---|---|
| Maximum payout | Rs 1,000,000 per claimant |
| Who is covered | Customers of a broker PSX has declared a defaulter |
| Where to claim | PSX Regulatory Affairs Division (RAD) |
| Legal base | SECP rules and regulations of 2017 |
| Payment rules | Chapter 24 of the PSX Regulations |
Claims open only after PSX declares the broker a defaulter
You cannot file a CCPF claim just because a broker is slow or rude. The claim process starts when PSX declares the broker a defaulter and publishes a notice of default on its website. Until that notice appears, there is no fund claim to file.
On the same day, PSX posts a public notice inviting claims. It also publishes the notice in at least two widely read newspapers, one in English and one in Urdu. PSX then posts the claim form to customers at the addresses registered with the Central Depository Company (CDC) or the National Clearing Company (NCCPL).
That last point matters. If you moved house and never updated your CDC or NCCPL address, the form may go to the old one. You can still ask RAD for it, but fixing your address now saves time later. Our advice here is practical, not a PSX rule.
Six steps take a claim from default notice to payment
PSX describes a fixed order. A Default Committee is formed, a notice goes out, forms are sent, an audit firm checks the claims, assets of the broker are sold, and the fund pays what is still missing, up to the limit.
- RAD forms a Default Committee of industry experts, senior PSX staff and brokers (TREC holders), with brokers making up at most one third of the members.
- PSX publishes the notice of default on its website.
- PSX publishes a public notice the same day inviting claims, and runs it in two newspapers.
- The Investor's Complaint/Claim Form goes to customers at their registered addresses.
- An audit firm checks that each claim is genuine.
- Approved claims are settled from the defaulter's assets first, then from the CCPF up to Rs 1,000,000.
The broker's own assets are used before the fund pays
The CCPF is the last source, not the first. PSX pays approved claims from the money raised by selling the defaulter's assets held in its custody. Whatever is still unpaid after that is met from the fund, up to Rs 1,000,000 per claimant.
PSX also states a pro rata rule. If the total the fund must pay under the per-claimant limit is lower than Rs 35 million, the difference is paid to claimants who were only partly settled, in proportion to what they are owed. PSX does not give an example, so do not count on a figure.
If you hold more than Rs 1,000,000 with one broker, the fund cannot make you whole. Spreading money across more than one licensed broker is the only protection against that, and it is a choice, not a rule. The steps to open a PSX Sahulat account are one way to start with a small, simple account.
A dispute with a working broker goes to arbitration, not the fund
If your broker is still trading and you only have a disagreement over a trade or a charge, the CCPF does not apply. PSX sends those cases to arbitration under Chapter 18 of its Rule Book, handled by the Regulatory Affairs Division.
PSX lists three ways to lodge a complaint. You can use its online complaint system at cms.psx.com.pk, email investor.complaints@psx.com.pk, or send the claim form and general instructions that PSX posts on its investor page. The steps to complain against a stockbroker walk through the choice in more detail.
Before you pick a broker at all, check that it holds a valid licence. And if you are new to shares, how to start investing on the PSX explains the basic account setup.
Common questions about the PSX compensation fund
How much can I get from the CCPF?
Up to Rs 1,000,000 per claimant, and only for a claim that PSX has admitted against a defaulter broker.
Does the fund cover losses from falling share prices?
No. PSX says the fund's sole mandate is to compensate customers of a defaulter stockbroker.
Where do I file a claim?
Contact the Regulatory Affairs Division of PSX. The claim form is on the PSX website, and PSX also posts it to your registered address.
How will I know a broker has defaulted?
PSX posts a notice of default on its website and a public notice inviting claims. It also runs the notice in two newspapers.
What if my address with CDC is old?
PSX sends forms to the address registered with CDC or NCCPL. Update it now, or ask RAD for the form if you miss the mailing.
Who checks that a claim is real?
An audit firm verifies the genuineness of claims, so keep contract notes, account statements and payment receipts.
How we verified this
What we checked, where we read it, and what we could not confirm.
Last checked 15 October 2026. The fund's limit, process and the complaint channels come from the PSX investor pages, including the page on the Centralized Customers Protection Compensation Fund, which we opened on that date. We did not file a claim or contact PSX. PSX can change its rules, so confirm the current process with the Regulatory Affairs Division before you rely on it.
About the author
Senior Writer, Public Services and Technology
Shahid joined us in 2024 as an author. He is a senior contributor to Pakistan's leading technology websites. He writes detailed articles, mostly covering his expertise in the latest tech, mobiles, apps, gadgets, and step-by-step guides. His ideology is to help people understand the latest trends and explain complex methods through very easy-to-understand guides.
