Par panel for single-window redressal to all investor problems

To ensure a single-window clearance system for resolving all investor problems, a Parliamentary panel has suggested bringing the grievance redressal mechanism under the proposed IEPF Authority.
The suggestion comes against backdrop of rising instances of investors getting duped by fraudulent investment schemes and dubious companies.
The panel has also said that setting up of the Investor Education and Protection Fund (IEPF) Authority, under the new companies law, has taken an "unduly long time".
Under the Companies Act, 2013, the Corporate Affairs Ministry is to set up the IEPF Authority but it would not cover redressal of investor grievances in the proposed form.

Noting that redressal of investor grievances has remained an area of neglect, the panel said that small investors "have often been short-changed by unscrupulous promoters and dubious companies".
The performance of the Ministry's field offices in providing prompt redressal for such grievances has been "less than satisfactory", it said.

These observations are part of the Standing Committee on Finance's report on action taken by the government on the recommendations made by the panel on Demands for Grants (2014-15).
The proposed IEPF Authority would be responsible for administration of investor education and protection funds, undertaking investor awareness, refund of unclaimed amounts, distribution of disgorged money and reimbursement of legal expenses under class action suits.

According to the panel, excluding investor grievances from the mandate of IEPF Authority "will do no justice to the investors' fraternity".
"The Ministry should include all investor-related activities including redressal of investor grievances under the ambit of the Authority as it will act as a single window for all investor problems," the report said.
Regarding the Indian Institute of Corporate Affairs (IICA), the panel said the organisation should redefine itself rather than just being a training institution.
"Considering the amount of investments which has gone into creating such massive infrastructure of the Institute, much more needs to be done," it noted.

IICA should not limit its scope by merely becoming a training institution for the probationers of the Indian Corporate Law Service and other officials of the Ministry, the report said.
"It should rather redefine its role and pro-actively position itself in the market as a leading research-based institute, which can serve the growing needs of Indian industry in the area of corporate law and practice," it added.