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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