Investor Inquiry: Should I Trust an AADHAAR-Registered Charity Group Offering Investments?

Ans: Complaint to police and also SEBI

Ans: Here's how you can complain against the organization that allegedly opened an institutional trading account for you without your consent:

1. File a Complaint with the Broker:

Start by directly contacting the broker's customer care department. Lodge a formal complaint about the unauthorized opening of an institutional account.
Request them to rectify the situation and close the account immediately.
Keep a record of your complaint, including the date, time, and reference number (if provided).
2. Approach Regulatory Bodies:

If the broker doesn't address your complaint satisfactorily, you can escalate it to the Securities and Exchange Board of India (SEBI). SEBI is the regulatory body for the Indian stock market.
You can file a complaint online on the SEBI SCORES portal (https://scores.gov.in/) or by post/email.
SEBI will investigate your complaint and take necessary action against the broker if they find any wrongdoing.
3. Stock Exchange Grievance Redressal Mechanism:

If the broker is a member of a stock exchange (NSE or BSE), you can also file a complaint with their grievance redressal mechanism.
Each exchange has a dedicated portal for filing complaints.
4. Legal Action:

As a last resort, you can consider legal action against the broker. This might be a more complex and time-consuming route, so consulting a lawyer specializing in financial matters is recommended.
Documents to Keep Handy:

Any communication you had with the broker regarding the account opening (emails, SMS, call recordings, etc.)
Account opening documents (if you have any)
Proof of your identity and residence
Remember:

Act promptly. The sooner you file a complaint, the better the chances of resolving the issue effectively.
Keep detailed records of all your communication and actions taken.
By following these steps, you can take action against the organization and potentially get the unauthorized account closed.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

Ans: Investing with a firm that is not registered with the Securities and Exchange Board of India (SEBI) poses significant risks to your investment. SEBI registration ensures that investment firms comply with regulatory standards, investor protection measures, and transparency requirements, which are essential for safeguarding investors' interests.

Here are some considerations regarding investing with a firm not regd with SEBI:

SEBI Registration: SEBI registration is mandatory for any entity engaged in offering investment-related services, including portfolio management, advisory, and fund management. Lack of SEBI registration raises concerns about the legitimacy and regulatory compliance of the investment firm.

Investment Protection: Investing with unregistered firms exposes you to higher risks of fraud, mismanagement, and potential loss of capital. Without SEBI oversight, there may be limited recourse in case of investment disputes, fraudulent activities, or financial irregularities.

Due Diligence: Before investing with any investment firm, conduct thorough due diligence to verify their credentials, track record, regulatory status, and client reviews. Look for reputable firms with established track records, transparent operations, and regulatory compliance.

Legal Implications: Investing with unregistered investment firms may violate securities laws and regulations, potentially subjecting investors to legal and financial liabilities. Ensure that your investment decisions comply with applicable laws and regulations to avoid legal repercussions.

Professional Advice: Seek guidance from a certified financial advisor or investment professional who can assess the risks and benefits of investing with any unregistered firm. They can provide personalized recommendations based on your financial goals, risk tolerance, and investment preferences.

In conclusion, investing with an unregistered investment firm like carries inherent risks and may not provide adequate investor protection or regulatory oversight. Prioritize investing with SEBI-registered entities that adhere to regulatory standards and ensure transparency and accountability in their operations. Always exercise caution and conduct thorough due diligence before entrusting your funds to any investment firm.