If you are an investor in India where shareholder democracy is a still born child and companies frequently ride roughshod over the rights of investors, we need some activism. While class activism took off in the west long ago, India is yet to see anything of that sort. Hedge fund activism is now the inthing. Funds like Efficient frontier ( not able to find the link) have forced a discussion about the leverage being carried by vodafone and are atleast forcing a discussion.
The regulatory mechanism in India has improved by leaps and bounds in the last decade. But have we achieved anything for the individual investor is the question. And when I mean by investor here is not just the equity investor but also the debenture instruments and public/ company deposits. Debenture trustees have failed their mandate in India, rarely have they been able to carry out the duty that their role envisaged.
In case of equity investors multiple avenues exist - you could complain to the stock exchanges ( which have a investor cell - funded by various internal sources), or SEBI. Complaints like non receipt of dividend, demat requests, bonus shares, annual reports ( its your right as a shareholder to receive them!!!) and such others. You could also write to the cells of NSDL and CDSL and try to resolve this.
In case of public deposits, the authority for this was (is?) the Company Law Board (CLB) which passes the orders. NBFCs and for those who are old enough those teak, sheep, plantation companies ( remember guru kiran, Anubhav et al?? ) are regulated by RBI.
But there is another glimmer of hope, check out www.investorhelipline.in its run by a group called Midas Touch investor association and supported by the Ministry of Company affairs , Govt of India. While the government has nothing much to do and has no association to this site, I think the group has done a wonderful job of helping investors out. Till date they have helped resolve 730 cases, which is remarkable. While it might seem very small, remember this is when they have no legal power ( as in punitive) to pursue the cases but still ave managed this. Good show guys, keep up the good work.
So if you ever get stuck with some issue and company is playing hardball, you know who your friends are.
"Development of a fair, transparent, efficient capital market having a participative, enlightened and an empowered investor." is what investorhelpline says its mission is, lets clink glasses to that
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My mother Mrs.Shanti V.Java had 29 equity shares in Elecon Engg. Co.Ltd, before bonus issue and split of shares(Rs.2 per share). Due to frequent changes in residential address she did not receive the D/Ws since 1982. At least now that the new address has been registered with the registrars of the company, they can even credit the DWs in her SB Account for the last five years atleast for which she is eligible.
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