Unethical act by MF distributor

#1
My 78 year old illiterate grandmother lives alone. Her banker suggested a scheme having more Interest rate than her existing Fixed deposits that she had in the bank. Upon her suggestion she agreed to invest in such a scheme. The banker never told her that she was investing her money in a MF. My grandmother requested some paperwork regarding the investment several times but the banker never provided any. After 1-2 months I somehow got to know that her money was invested in a MF of which the portfolio allocation to equities was more than 65%. This, I believe was done by the banker only for making more commissions at the expense of my grandmother and she never understood anything as she is an illiterate. Commissions on Equity schemes are more than debt schemes I believe. She incurred a loss of Rs.80,000 which she cannot bear as there is no one to provide her for daily expenses. WILL the SEBI hear my plea and make the bank reimburse her for the loss incurred and also provide a compensation as this is close to the definition of a fraud.
 

NJ78

Well-Known Member
#2
My 78 year old illiterate grandmother lives alone. Her banker suggested a scheme having more Interest rate than her existing Fixed deposits that she had in the bank. Upon her suggestion she agreed to invest in such a scheme. The banker never told her that she was investing her money in a MF. My grandmother requested some paperwork regarding the investment several times but the banker never provided any. After 1-2 months I somehow got to know that her money was invested in a MF of which the portfolio allocation to equities was more than 65%. This, I believe was done by the banker only for making more commissions at the expense of my grandmother and she never understood anything as she is an illiterate. Commissions on Equity schemes are more than debt schemes I believe. She incurred a loss of Rs.80,000 which she cannot bear as there is no one to provide her for daily expenses. WILL the SEBI hear my plea and make the bank reimburse her for the loss incurred and also provide a compensation as this is close to the definition of a fraud.
You can file a complaint of misselling against the banker with the AMC of the mutual fund scheme in question. Concurrently, you can file a complaint with SEBI -- https://www.sebi.gov.in/department/...-9/investor-complaints-cell-123/overview.html

Another option is the Moneylife Foundation (http://foundation.moneylife.in/). They are known to handles cases like these.
 
#3
My 78 year old illiterate grandmother lives alone. Her banker suggested a scheme having more Interest rate than her existing Fixed deposits that she had in the bank. Upon her suggestion she agreed to invest in such a scheme. The banker never told her that she was investing her money in a MF. My grandmother requested some paperwork regarding the investment several times but the banker never provided any. After 1-2 months I somehow got to know that her money was invested in a MF of which the portfolio allocation to equities was more than 65%. This, I believe was done by the banker only for making more commissions at the expense of my grandmother and she never understood anything as she is an illiterate. Commissions on Equity schemes are more than debt schemes I believe. She incurred a loss of Rs.80,000 which she cannot bear as there is no one to provide her for daily expenses. WILL the SEBI hear my plea and make the bank reimburse her for the loss incurred and also provide a compensation as this is close to the definition of a fraud.
Maybe the banking ombudsman (under rbi ) will be effective, link "
https://bankingombudsman.rbi.org.in/
 

Biker

Active Member
#4
i am not an expert but considering your case, i think the chances of u getting any money is nil.

Frauds cases are where the distributor runs away with money or creates fake accounts, etc.
 

newtrader101

Well-Known Member
#5
My 78 year old illiterate grandmother lives alone. Her banker suggested a scheme having more Interest rate than her existing Fixed deposits that she had in the bank. Upon her suggestion she agreed to invest in such a scheme. The banker never told her that she was investing her money in a MF. My grandmother requested some paperwork regarding the investment several times but the banker never provided any. After 1-2 months I somehow got to know that her money was invested in a MF of which the portfolio allocation to equities was more than 65%. This, I believe was done by the banker only for making more commissions at the expense of my grandmother and she never understood anything as she is an illiterate. Commissions on Equity schemes are more than debt schemes I believe. She incurred a loss of Rs.80,000 which she cannot bear as there is no one to provide her for daily expenses. WILL the SEBI hear my plea and make the bank reimburse her for the loss incurred and also provide a compensation as this is close to the definition of a fraud.
Contracts are valid if the parties are fit to make the decision. Required conditions are described here.
https://amielegal.com/breaking-the-...01-capacity-of-parties-to-a-contract-in-india
 

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