The Securities and Exchange Commission (SEC) on Tuesday said it paid claims to 251 investors out of 580 complaints received from the closed Mega Asset Managers Ltd.
The Head of Corporate Communications of SEC, Mr Naif Abdusallam said the 251 investors that have been paid are those that have successfully completed verifications and submitted relevant documents to the commission.
He said that the payment procedure was ongoing and the commission would pay other investors after completion of the verification process.
SEC recently advertised that 580 investors of Asset Managers Ltd. should come for verification and payment of their claims.
The circular stated that the Board of the National Investor Protection Fund (NIPF) at its sitting on Dec. 14, 2015, approved payment of compensation to the investors.
The NIPF is a scheme being promoted by SEC to compensate investors that suffer losses due to the insolvency, bankruptcy or negligence of a Capital Market Operator (CMO).
According to rules approved by the Board of SEC, the NIPF will apply only to bankrupt capital market operators that are not dealing members of any Securities Exchange or Capital Trade Points.
The NIPF will be for the purpose of compensating investors whose losses are not covered under the NIPF administered by SEC and Capital Trade Points.