The Securities and Exchange Board of India ( Sebi) has asked stock exchanges to change their byelaws to ensure investors are compensated from their investor protection fund ( IPF) if a trading member or broker is expelled. The current laws only entertain claims in case of broker defaults. The issue arose after the BSE exchange refused to pay money from its IPF to aggrieved investors after the expulsion of Delhi- based broker Kassa Finvest last year. Its byelaws, it told them, allowed IPF money to be utilised only if abroker had defaulted. However, the National Stock Exchange ( NSE) began paying claims due to investors from its IPF last year, said a source. BSE owed only a few crores to investors, as 70- 80 per cent of transactions done by the broker were through NSE, added the person. As of April last year, investor claims against Kassa Finvest reportedly amounted to about Rs.150 crore. BSE says it had disbursed Rs. 29.7 lakh from the assets of Kassa available with the exchange