The
Consumer Protection Act was enacted
in 1986. Although it opened a new
redressal window for aggrieved
consumers, the large number of cases
filed in the consumer courts delayed
the process. Also, there was no
single-window redressal system,
especially for retail investors.
Keeping this in mind, Investor
Helpline (www.investorhelpline.in),
a dedicated online service for
retail investors, was launched in
September 2006.
The response
to the website has been lukewarm,
but the redressal mechanism has
generated good results. Of the
complaints registered, almost 62 per
cent were resolved (see Investor
Helpline), in contrast to the other
consumer grievance forums. So, if
you are an investor who has been
short-changed, knock on Investor
Helpline’s door.
The
driving force. The idea of
having such a portal was conceived
by Midas Touch Investors Association
(MTIA), an organisation associated
with taking up the cause of retail
investors since 1995. It was
instrumental in getting a relief of
Rs 975 crore to unitholders of
Canstar, a Canbank MF scheme, and
the consequential changes in MF
regulations. The funding came from
Investor Education and Protection
Fund, Ministry of Corporate
Affairs.
Virendra Jain, director, MTIA, says,
“The idea was to have a service that
could be easily accessed from
anywhere and the Internet was the
most effective medium.”
Getting started. You need to
register on the website before you
file your complaint. As of now the
helpline caters to around 11 types
of complaints. “In future, we will
broaden the sphere,” says Jain.
These complaints include issues like
non-receipt of refund order,
dividend, offer for rights issue,
among others. After registering,
file your complaint under an
appropriate head. You will be
allotted a specific ID, which will
help you track the status of your
complaint. You will have to mention
the name of the company against
which you have a grievance. The
company’s name may or may not be in
the portal’s database. “In case our
database does not have the name, we
will check the authenticity of the
company. If we are able to trace the
company, then we add its details to
our database. The entire process
typically takes 72 working hours,”
says Jain.
The backend
process. Once Investor Helpline
receives the complaint, it
approaches the company, in writing,
and requests them to intervene in
the matter. If no reply is received
in 15 days, the matter is taken up
with the stock exchange where the
company is listed.
Complaints related to company
deposits are taken to the registrar
of companies. If the companies still
do not respond, the matter is taken
up with the regulator. Says Jain,
“Usually, by this time the company
responds and the problem gets
solved. But, if the company has
closed down, responses are hard to
come by and we close the file after
180 days of receiving the
complaint.” Once a problem is solved
companies typically inform the
helpline through a letter, a copy of
which is sent to the consumer as
well.
The response.
The site has close to 3,870
registered investors. Two-thirds of
the complaints come from tier-II and
tier-III cities, such as Agra,
Bokaro and Kochi.
The new
service opens a window for aggrieved
retail investors. To top it, it is
free and you don’t have to run from
pillar to post. Just register the
complaint and leave the rest to
Investor Helpline because, given its
high success rate, the solution may
just be a click away.
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