ISE has set up an Investor Protection Fund (IPF) to meet the claims of investors against defaulter Members, in accordance with the Guidelines issued by the Ministry of finance, Government of India.

ISE has established an Inter-connected Enterprises Investor Protection Fund Trust (ISE-IPF Trust) 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, awareness and research. The Investor Protection Fund (IPF) is administered by way of registered Trust created for the purpose. The Inter-connected Stock Exchange Investor Protection Fund Trust is managed by Trustees.

The Inter-connected Enterprises Investor Protection Fund Trust, based on the recommendations of the Defaulters' Committee, compensates the investors to the extent of funds found insufficient in Defaulters' account to meet the admitted value of claim, subject to a maximum limit as per decided by Trust per investor per defaulter/expelled member.