PMC Bank depositors are struggling to solve their problems. Godwin Jewellers investors are worried. There are several such companies and banks which fail from time to time. Gullible investors/depositors lose their hard-earned money.
In the 90s it was IPO scams, and plantation companies robbed investors. Every now and then the comes promoters who shake the system and benefit out of its inefficiencies.
The Govt is doing its bit but not enough. RBI has started awareness campaigns and some awareness is being created. But these fraudsters come in different avatars which regulators fail to foresee beforehand.
“Our ability to manufacture fraud now exceeds our ability to detect it.” Al Pacino
The good news is the regulators are now vigilant, they act fast. While police complaint is always an option but if investors approach regulators, then the issue can be settled quickly without hassle.
As an aware investor, you must know the regulatory body governing the company you are investing in. What is the grievance redressed mechanism?
This is as important as it was important for Abhimanyu to know the complete mechanism to escape from the Chakravyuha.
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Here are some of the institutions which are regulated and their regulators can be approached to solve your complaints if the company is not cooperating.
Banks / Insurance Companies
Banks are governed by RBI. But every bank has its own grievance cell.
All the Public Sector Banks (PSBs), Financial Institutions (FIs) and Public Sector Insurance Companies (PSICs) have policies and mechanisms for redressal of public grievances/customer complaints through their Customer Service Departments.
For prompt redressal of public grievances, petitioners are advised to first approach the concerned organizations for resolution of their grievances. They all have a 3-tier complaint resolution system – Branch manager Zonal Manager and – GM Customer Service.
All banks and insurance companies have details of the Grievance officers on their website.
In case the complainants are not fully satisfied with the redressal/ disposal of complaints, they may approach the concerned Banking Ombudsman and Insurance Ombudsman for settlement of their grievances through mediation and passing of awards in a time frame.
The grievances received in the Department online or by post / manually in the Department are processed and forwarded through CPGRAMS (Centralized Public Grievance Redress and Monitoring System) to concerned organizations for resolution/disposal monitored and periodically reviewed.
As per guidelines/instructions of the Department of Administrative Reforms and Public Grievances (DARPG) the maximum time limit of resolution of a grievance is 60 days.
Here is a link to the Portal.
Customers of Private banks and Private Insurance companies also can visit the company website for the contact details of the Grievance cell. They also can approach the regulators i.e. RBI and IRDA.
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Mutual Funds / Listed Companies
SEBI is the regulator of investment and securities-related companies. All mutual funds and listed companies are governed by SEBI. They have a complaint redressal forum called Scores i.e. SEBI Complaints Redressal System.
You can approach the respective company first for the redressal of your complaint. All have their investors grievance cells in place.
When not satisfied with the company’s response and settlement, you can approach SEBI SCORES for your complaint redressal.
For complaints against the unlisted companies, you can approach the Ministry of Corporate Affairs (MCA).
You can choose the appropriate options and file an online complaint on MCA website. Under the top panel, MCA Services, you will find a complaint option. Use the appropriated option to file your complaint.
Govt has also started centralised public grievance redressal system. You can file your complaint against the listed and unlisted companies.
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Builders / Real Estate Brokers
Any of your complaints against the builder or broker can be filed with RERA.
Remember, for every consumer-related complaint, consumer forums always accept a complaint from the public. You may approach them in case you are not satisfied with the company and regulators. There is a national consumer firm portal for file complaints.
Income Tax Department
People may have various grievances against the income tax department. They also have a set guideline to address a public grievance.
The assessees can file the grievance personally to the Information and Facilitation Counter or send their grievance by post to the Grievance Cell or email them it to the Public Relations Officer.
The Grievance Cell works in a computerized environment. The status of each petition is constantly monitored and reminders issued to the Assessing Officers from time to time. Petitions received from the Prime Minister’s Office/Finance Minister’s Office or the Central Board of Direct Taxes/Ombudsman are treated as a top priority and redressed on a priority basis.
The Govt has set up a public grievance directorate to help the public in resolving their grievance against Govt departments, agencies.
Govt of India and all relevant regulators are vigilant about the public grievance settlement. It is for the grieving public to escalate the complaints when they are not satisfied with the company, they have a complaint against.
“If you love your country, you must be willing to defend it from fraud, bigotry, and recklessness–even from a president.”
There will be wilful fraudulent promoters and companies, but the regulators need to be proactive and investors must remain alert in not investing in shaky projects, products, and instruments. But when both fail, it is your duty to escalate your complaint to the highest level so as to make the system deliver you your rights.
Don’t be Abimanyu, know the exit route end to end.
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