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The bank in the said letter also claimed – “This payment has been made by the Bank as a goodwill gesture and to maintain cordial relationship with you. The payment of this amount should not in any way be construed as admission of any fault or default or failure or offensive act on the part of the Bank or any of its officers”. These statements itself is an admission of guilt. Goodwill gesture after 4yrs.,that too post police complaint is self explanatory.The bank must pay us back the balance amount with interest.Appropriate penal action should be taken against S.C.B.,AMCs who in connivance facilitated churning,and violated all guidelines.Should stop dealing with S.C.B.Licence of StanChart should be put to on hold to sell mutual fund products till our grievances are amiccably redessed.
Hope regulator/R.B.I.noticing.Please showcause StanChart as in Ms.Krishnamoorty vs.HSBC case.Both are similar.
The bank in the said letter also claimed – “This payment has been made by the Bank as a goodwill gesture and to maintain cordial relationship with you. The payment of this amount should not in any way be construed as admission of any fault or default or failure or offensive act on the part of the Bank or any of its officers”. These statements itself is an admission of guilt. Goodwill gesture after 4yrs.,that too post police complaint is self explanatory.The bank must pay us back the balance amount with interest.Appropriate penal action should be taken against S.C.B.,AMCs who in connivance facilitated churning,and violated all guidelines.Should stop dealing with S.C.B.Licence of StanChart should be put to on hold to sell mutual fund products till our grievances are amiccably redessed.
Hope regulator/R.B.I.noticing.Please showcause StanChart as in Ms.Krishnamoorty vs.HSBC case.Both are similar.
as Mutual fund distributor and not as a portfolio manager.Strangely enough,the regulator failed to act against StanChart bank on the same ground,which violating all norms present on earth to protect the rights &interest of investors.Arent they supposed to be the custodian of investors'funds!Our endeavour will continue, till The StanChart bank faces the same fate as HSBC i.e.atleast show cause notice/penal action.
9. Avoid commission driven malpractices such as :
(a) Recommending inappropriate products solely because the intermediary is getting higher commissions therefrom.
(b) Encouraging over transacting and churning of Mutual Fund investments to earn higher commissions, even in they mean higher transaction costs and tax for investors.
We reproduce hereunder point number 4 of above mentioned SEBI Circular dated August 27, 2009:
4. It is advised that all intermediaries of mutual funds units shall follow the code of conduct strictly. If any intermediary does not comply with the code of conduct, the Mutual Fund shall report it to AMFI and SEBI. No mutual fund shall deal with those intermediaries who do not follow code of conduct.
We had time again asked Mutual Funds and AMFI to bar Standard Chartered Bank from selling Mutual fund products since they have violated SEBI Guidelines by over transacting and churning of our mutual fund portfolio, but only to deaf ears. And now to our utter surprise SEBI is asking us to file an FIR with the police department for redressal of our grievances. We have been subjected to churning, forgery was to facilitate the same. It is same as murder taking place with an unlicensed revolver, Judiciary never asks for the source of revolver. Main concern of judiciary is to bring the criminal to book. We similarly expect SEBI to ascertain whether churning has taken place or not and if yes than to follow there circular and take necessary actions against Standard Chartered Bank for violation of guidelines.
Waiting for a proper reply from your end.
• Para 3.9 relating to code of conduct for Intermediaries clearly state that an intermediary should avoid commission driven malpractices such as :
(a) Recommending inappropriate products solely because the intermediary Is getting higher commissions therefrom.
(b) encouraging over transacting and churning of Mutual fund investments to earn higher commissions, even if they mean higher transaction costs and tax for the investor.
Our complaint was with respect to Standard Chartered Bank an intermediary for sale of Mutual fund schemes. They have violated all guidelines by churning our mutual fund portfolio and forging signatures on the transaction slips resulting in big financial loss to us. For reasons beyond our comprehension it seems that AMFI is only to facilitate income of the intermediaries even at the cost of investors. Morever we are of the opinion that AMFI only requests the intermediaries to follow code of conduct but does not take any action if such code of conduct is breached to facilitate there income at the cost of investor. This is very much evident from the introductory statement of Mr. A.P. KURIAN, Chairman AMFI where it is requested as follows:
“It is our request that all the intermediaries make sincere efforts to adhere to the guidelines and the code of conduct so that all those engaged in the business of selling and marketing of mutual fund scheme’s follow professional, healthy and best practices for the sustained benefit of all concerned – investors, intermediaries and the Mutual Fund industry as a whole”
The request by AMFI has fallen into deaf ears of Standard Chartered Bank and they have committed such grave fraud so as to rob investors like us of our hard earned money.
28. The bank in the said letter also claimed – “This payment has been made by the Bank as a goodwill gesture and to maintain cordial relationship with you. The payment of this amount should not in any way be construed as admission of any fault or default or failure or offensive act on the part of the Bank or any of its officers”. These statements itself is an admission of guilt. Regulator/the central bank unmoved.I suppose out of "GOODWILL GESTURE TO STANCHART BANK".