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Mutual funds companies are backed by major banks and financial institutions. If you are not happy with the services by your  Asset Management Companies (AMC) for any reason, you can approach the statutory body SEBI. The reason could be anything ranging from not updating you regularly, default of dividend payment etc.

In this article, we will cover how and where a mutual fund investor can redress complaints.

  1. Where can an investor file a complaint?
  2. How do you file a complaint about a mutual fund or AMC?
  3. What are the complaint categories available?
  4. How do you track the status of your grievance?

 

1. Where to file a complaint

The mutual fund is becoming less and less scary to investors on the fence. This is because of the strict regulations by statutory bodies like SEBI and AMFI.

a. Phase 1: the AMC or the Distributor

If you have a complaint regarding your mutual fund investments, the first step to take is reaching out to the concerned fund company or your fund distributor. Every mutual fund company has an investor center that allows investors to reach out to them. You can call or email them through their website. Alternatively, you can get in touch with your fund distributor or agent through whom you invested in the mutual fund. In most cases, either one of these methods would be enough to resolve your issue.

b. Phase 2: SEBI

In some cases, fund houses themselves may not be able to offer impartial solutions to investors. It is natural for a mutual fund company to want to protect themselves first. This is why all mutual fund companies come under the government body, SEBI (Securities and Exchange Board of India). To assist investors in getting their complaints addressed, SEBI has launched SCORES, which stands for Sebi Complaints Redress System.

 
SEBI
 

2. How to register a complaint with SEBI

SCORES is an online portal on SEBI website where you can log complaints, send reminders and check the status of their complaints. First, you need to fill in the basic info in respective columns to register and open an account. You will receive the login credentials by email. Confirm registration and login to air your grievance.

Try to fill in as many details of you as an investor as well as that of the fund house and the mutual fund. It will be easier for SEBI to resolve at the earliest. After filing the complaint, they will send you a complaint registration number, so that you can follow up. They take no more than 30 days to redress the complaint.

 

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3. Complaint categories available under SCORES (SEBI)

On the SCORES page, you have the option to select the mutual fund after the columns for personal info. Under the mutual fund, you will see various complaint categories. Some of them are the delay of dividend payment, non-compliance with the promised attributes, delaying the redemption process, not giving a patient ear and so on.

If your complaint falls under any of the categories specified, choose that. Else, select ‘Others’. In this column, you can enter the complaint manually (please keep it less than 1000 characters). If this space is insufficient, you have the option to upload documents (proofs of an unsatisfactory response from the fund house or complaint letter). A copy of your complaint also goes to the fund house, and SEBI will keep a track on how the AMC solves your issue and how soon.
 

4. How to track the status of your complaint

Once your complaint goes to the SEBI portal, they assign the concerned party – fund house, agent, advisor or distributor – to address the issue within a specific deadline. To know the status of your grievance, log in to your account. You can see your registration number on your account page. Click on ‘View Complaint Status’ to know. SEBI will only close the complaint if it gets redressed to the regulator’s satisfaction.
In short, this is how mutual fund investors can get their complaints redressed. But remember to approach the fund company or distributor before you approach SEBI. Mutual funds are as safe as they are lucrative. Invest with ClearTax Invest for hand-picked portfolios that match diverse financial goals. The funds, we have short-listed are from the top fund houses in the country. Start investing.

 

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