How to file complaint about bonds, debentures and companies

Stock exchanges and regulators only consider complaints related to listed companies. However, one can file a complaint about bonds, debentures and unlisted companies with the MCA. Here is a guide for you on filing complaints

Moneylife receives a steady stream of complaints from people who have been lured to invest their hard earned savings in unlisted companies. As a rule, we actively discourage people from investing in unlisted companies, unless it is a family undertaking and you are fully aware of the risks. The worst con is by financial advisors who entice people to by shares of unlisted companies with the promise of making a huge profit when the company is listed. A quick look at some statistics would reveal that there were only three IPOs in the entire calendar year. And, while 35 odd small and medium enterprises (SMEs) were listed, they have almost no volumes.  
 

Clearly, neither the stock exchanges nor the SEBI Complaint Redress System Website (SCORES) is empowered to look at these complaints. The Ministry of Corporate Affairs (MCA) accepts complaints against unlisted companies as well as those listed on exchanges. The MCA website provides separate complaint options for shares, debenture or bonds and also classifies the nature of complaints to make it easy to report. You can choose appropriate option and file online complaint on MCA website.
 

Here is the guide on how and where to lodge a complaint related to bond,  debentures, of listed and unlisted companies with the Ministry of Corporate Affairs (MCA). 
 

1. First send a written complaint to the company. If you do not get a satisfactory response and your grievance is not redressed then escalate the issue. You can file an online complaint to MCA.
 

2. On MCA website  click on the right side menu under ‘Important Links’ click on ‘Lodge Investor Complaints’. It will provide you ‘Investor Complaint Form.’
Fill in all the necessary information before you submit your online complaint.
 

3. While filling online complaint form on MCA website, you need to find out and enter ‘corporate identity number (CIN)’ of the company.
 

4.  You will find many options regarding nature of complaint. If your complaint is regarding debentures or bonds, in option 3 - ‘Nature of complaint’ – choose ‘Debentures or bond’ and in sub section of 3 (ii) ‘Complaint on debentures or bond’ select correct option, describe your issues and submit the form after filling all the necessary information.
 

To file an online complaint with Securities and Exchange Board of India (SEBI), (only complaints regarding listed companies or prelisting of debentures and bonds or shares)
 

1. Go to SEBI Complaint Redress System Website (SCORES)  than in section of ‘Investor Corner’ choose ‘Complaint Registration’. After clicking on it, you will get ‘Complaint Registration Form’ open it and fill necessary information.
 

2. While filling your information, in ‘Complaint Details’, select appropriate option as per nature of your complaint incase of complaints related to bonds and debentures select first category – ‘Listed Companies’ and choose third option - ‘Prelisting/Offer Document (Debentures & Bonds)’ and it will open window. After filling all the necessary information submit the form.
 

3. For guidance or complaints you can call on toll-free SEBI Investor Helpline no—1800 266 7575 or 1800 22 7575 which works on all days from 9:30 AM to 5:30 PM excluding declared holidays in the state of Maharashtra.
 

To file a complaint on stock exchanges—National Stock Exchange (NSE) and Bombay Stock Exchange (BSE)—in case of listed companies and trading members.
 

If you have complaints regarding debt securities of companies or equity shares which are listed on BSE you can also file it on investor grievance of BSE, and for NSE you can file complaint with NSE Investor helpline—NSE Investor Center (NICE).
 

NSE’s Investor Services Cell and BSE’s Department of Investors Services both offers platform to file complaints against listed companies as well as trading members, with option regarding issues with equity shares or debt securities.
 

Moneylife earlier wrote many articles and cover stories on fixed income and bonds, you can access and read it here.

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    COMMENTS

    Ushareet

    6 years ago


    Subject: Undue delay in getting maturity amount of fixed deposits from JAIPRAKASH ASSOCIATES LIMITED, Sector-128, NOIDA-201304



    Dear Sir,

    Myself and my wife invested Rs 1.5 lakhs each by way of fixed deposits in JAIPRAKASH ASSOCIATES LIMITED, Sector-128, NOIDA-201304.These FDRs were for a period of three years and matured on 24th October 2014.

    Even though deposit receipts were surrendered to the company in first week of September 2014, till date we have not received the maturity amounts. Every time we contact the company we are given following reply by the company.
    “We are in process and payment cheque will reach to investor/you shortly”.


    Please advise with which authority we can take up the matter for redressal.

    ushareet
    [email protected]

    REPLY

    Shalu Jain

    In Reply to Ushareet 4 years ago

    Hi Ushareet,
    Even I am facing same issue. Did it resolved? if yes, then how?


    Regards,
    Shalu

    Ushareet

    6 years ago

    Subject: Undue delay in getting maturity amount of fixed deposits from JAIPRAKASH ASSOCIATES LIMITED, Sector-128, NOIDA-201304



    Dear Sir,

    Myself and my wife invested Rs 1.5 lakhs each by way of fixed deposits in JAIPRAKASH ASSOCIATES LIMITED, Sector-128, NOIDA-201304.These FDRs were for a period of three years and matured on 24th October 2014.

    Even though deposit receipts were surrendered to the company in first week of September 2014, till date we have not received the maturity amounts. Every time we contact the company we are given following reply by the company.
    “We are in process and payment cheque will reach to investor/you shortly”.


    Please advise with which authority we can take up the matter for redressal.

    ushareet
    [email protected]

    VIJAYA SREENIVASAN

    7 years ago


    Sir,


    I had deposited Rs.2 lacs in NEESA LEISURE LIMITED vide FDR.No. NLL-13739 to me matured on 19/12/13.

    The organisation had extended the maturity date of the above deposit as 19/06 14 and have sent new FD receipt bearing FDR No.16009 dated 20/12/13.

    Request to kindly send me the proceeds under intimation to me through email /SMS

    I will be highly obliged for your kind help and prompt action.

    Dr Anantha K Ramdas

    7 years ago

    What do we do with companies, whose board of directors, simply sit on huge cash reserves, and who never thought of issuing bonus?

    Companies like Jindal Steel & Power Ltd have huge cash; they do give a good dividend, year after year, but no "special" dividend or bonus. The reserves exceed the paid up capital hundreds of times over.

    There are some like Monsanto who have given special dividends; Coal India had plans but the board simply pushed off the decision to February. I think MCA must make a ruling may be through Company Law Board or simiar body that there should be a time frame within which such things must happen.

    Take D S Kulkarni - they sold shares at a premium; such premiums are supposed to be shared at a later date, I think, thru bonus issue. Nothing has happend. What do we do?

    Simiarly, when buy-back is offered, and delisting is done, the promoters can do what they want, without any regulation. What do we do? Later on they sell the equity on private placement. Why not the buy-back system also provide that a percentage of holding by the promoters should also be "got back" by the company?

    Like to hear views and suggestions on these issues from fellow readers.

    Sweena Jain

    7 years ago

    The company fixed deposit is a menace brokers induce depositors to deposit for companies they get hefty brokerage,the depositor generally don't have knowledge of company. Neesa leisure,Unitech,Bilcare are companies failing to repay interest and are unilaterally extending period without obtaining investors approval.In such cases can investor complain to SEBI against brokers for mis-selling and collecting deposits from gullible investors?Fixed deposits too must be brought under SEBI. So that single regulator can handle and take speedy action.Multiplication of regulators in fact make killing of investor by such fraudulent companies and brokers.

    Suiketu Shah

    7 years ago

    Very useful information by ml.

    arun adalja

    7 years ago

    you can file complaint with company law board for fix deposits.

    Vaibhav Dhoka

    7 years ago

    With which authority complaint of fixed deposit of listed /unlisted companies should be lodged.
    A Gujarat Based Company named NEESA LESISURE LIMITED has without consent extended FDR tenure by 6 months. As the cheques deposited got bounced that were put in for clearing.
    Which authority will take an appropriate action. As being a senior citizen I had invested a substantial amount of my savings in it.The cheque issued for interest payment is ia returned unpaid.Can EOW from police take action?Please advise.

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