Memorandum-PM - Concerns of Ordinary Investors

4 June 2014
Hon'ble Prime Minister,

Shri Narendra D. Modi,
South Bloc, !aisina Hill,
Ne" Delhi.
Sub: Memorandum to the Hon'ble Prime Minister re#ardin# concerns o$ ordinar% in&estors
Dear Sir,
'reetin#s $rom Mone%li$e (oundation. )e con#ratulate %ou on the historic mandate that %ou
obtained $rom the *eo*le o$ +ndia and subse,uent #o&ernment $ormation. )e are "ritin# this
letter as the &oice o$ +ndian $inancial consumers and "ith #reat belie$ in %our cam*ai#n slo#an
Achche Din Ayenge.
Sir, "e at Mone%li$e (oundation ha&e been "orin# $or the a&era#e $inancial consumer -in&estors,
sa&ers, de*ositors and ta.*a%ers/. )ith a membershi* o$ 00,000 in 1ust $our %ears, "e are no"
the lar#est such not2$or2*ro$it or#anisation in +ndia. +t is our direct e.*erience that +ndia's
$inancial consumers ha&e $aced the most tr%in# time. 3he% ha&e had to lose a lar#e chun o$ their
hard2earned, ta. *aid sa&in#s due to deliberate mis2sellin#, badl% desi#ned *roducts and un$air
business *ractices amountin# to cheatin#. 3his is done b% e&en the lar#est, best no"n and
re#ulated $inancial sector entities in +ndia toda%.
)hat is "orse, the #rie&ance redress s%stems are broen or d%s$unctional. 3he cumbersome and
o$ten $utile $i#ht $or redress or 1ustice discoura#es *eo*le $rom *artici*atin# in the $inancial
marets. 4ll this is re$lected in the hal&in# o$ +ndia5s in&estor *o*ulation o&er the last cou*le o$
decades $rom 20 million to 10 million -S6B+ sur&e% $indin#s/. 3a.*a%ers $ace another set o$ &e.in#
issues. 3he latest co&er stor% o$ the $ortni#htl% ma#a7ine Mone%li$e e.*lains the man% challen#es
and issues $acin# all the constituents o$ the s%stem -co*% enclosed/.
)e humbl% submit that this ha**ens because *olic% maers sim*l% do not en#a#e "ith $inancial
consumers in an% $ormal manner, althou#h the% hold re#ular meetin#s "ith industr% bodies,
associations o$ intermediaries and other interest #rou*s.
Sir, %ou and %our #o&ernment embod% the as*irations o$ the masses, and the u*comin# bud#et is
*ossibl% the most im*ortant in the recent *ast. )e ur#e %ou to consider main# it mandator% $or
re#ulator% authorities and other *olic% maers to consult $inancial consumers and their
re*resentati&es on a re#ular basis.
6&en $unds a&ailable to su**ort the cause o$ in&estors are not *ro*erl% utilised. )e "ould lie to
brin# to %our attention that the 'o&ernment o$ +ndia has a $und called the +n&estor 6ducation and
Protection (und -+6P(/ "ith o&er !s1000 crore in its itt% toda%. 3his hu#e sum re*resents
in&estors5 mone% but has lar#el% #one ito the 8onsolidated (und o$ +ndia "ith small *ortions doled
out to industr% associations to conduct mindless seminars. Similar $unds, runnin# into a $e"
hundred crores are a&ailable "ith each o$ the t"o ma1or stoc e.chan#es 9 the National Stoc
6.chan#e -NS6/ and the Bomba% Stoc 6.chan#e -BS6/. 3hese too are bein# used as *romotional
tools rather than to *ut in *lace in$rastructure that hel*s in&estors.
3hese $unds belon# to in&estors and must be used $or their bene$it. (or instance, in&estors "ho
ha&e a *roblem "ith broers are routinel% *ushed into arbitration, "here the% end2u* $i#htin#
one2sided battles. 3he +6P( and bourses need to *ro&ide le#al aid to such hel*less in&estors
throu#h in&estor bodies, so that the% ha&e no"led#able le#al re*resentation on *ar "ith that
a&ailable to intermediaries. )e ha&e man% more su##estions, based on direct $eedbac $rom
in&estors, on ho" "e can restore in&estor con$idence and im*art meanin#$ul $inancial education
that hel*s *rotect sa&ers.
)e ho*e that the &oices o$ $inancial consumers are heeded under %our leadershi*. 4n encoura#in#
$irst ste* "ould be to use or#anisations lie ours to add to e$$orts b% &arious #o&ernment
de*artments and a#encies. 3his could also #o a lon# "a% in increasin# the *artici*ation o$ re#ular
+ndians in the $inancial marets and in includin# them in the $uture #ro"th o$ the countr%.
)e "ould re,uest an audience "ith %ou to be able to outline *lans $or in&estors in a more
detailed manner. )e "ould also be ha**% to interact "ith an%one $rom %our team "ho ma% be
directed to address this issue in a serious manner.
3hanin# :ou,

Sucheta Dalal, Debashis Basu,
3rustee, Mone%li$e (oundation 3rustee, Mone%li$e (oundation
Enclosed: Brief profile of Moneylife Foundation
Moneylife Foundation 304, 3rd Floor, Hind Service Industries Premises, Off. Veer Savarkar Marg, ear S!iva"i Park Seaface,
#adar $%&, Mum'ai 4000(). *el+ 0((,4-(0.000 $/oard& 0Fa1+ 0((,4-(0.0((
ABOUT MONEYLIFE FOUNDATION
htt*;<<$oundation.mone%li$e.in
Moneylife Foundation is a Mumbai2based N'= "ith a mission to s*read ad&ocac%, consumer
a"areness, $inancial literac% and be the &oice o$ +ndian sa&ers.
Objective: Mone%li$e (oundation5s acti&ities are $ocused on;
a. Main# in&estors and sa&ers a"are o$ their ri#hts
b. !unnin# hel*lines $or retail bu%ers o$ insurance, mutual $unds, $or le#al hel* and $or
rail"a% commuters
c. 6nablin# in&estors and sa&ers to enhance their no"led#e throu#h seminars
d. Main# *olic%maers a"are o$ the issues o$ in&estors and sa&ers
e. 8reatin# no"led#e and insi#hts b% undertain# research and sur&e%s
Affiliation: Mone%li$e (oundation is re#istered "ith the 8harit% 8ommissioner o$ Mumbai, has
recentl% been acce*ted as a Su**orter Member o$ 8onsumers +nternational, a #lobal
$ederation re*resentin# 240 consumer or#anisations around the "orld. )e are also a *art o$
=68D +nternational Net"or on (inancial 6ducation.
Net!o"#: Mone%li$e (oundation has #ro"n to o&er 00,000 members, hosted 102> s*eaers,
or#anised 214> e&ents<seminars, and accommodated more than 1,?0,400 attendees in 1ust
$our %ears.
Land$a"# Event: +t hosted eminent *ersonalities such as !B+ de*ut% #o&ernor @8
8harabart%, Dr Subramanian S"am%, $ormer 84' Ainod !ai, $ormer chie$ election
commissioner S: Buraishi, $ormer 8+8 Shailesh 'andhi, $ormer rail"a% minister Dinesh 3ri&edi.
=n +nternational )omen's Da%, e&er% %ear, Moner%li$e (oundation honours "omen acti&ists
"ho mae a di$$erence to the societ%.
%un Five &el'line :
1. +nsurance hel*line; has hel*ed C0 *eo*le reco&er o&er !s0D.4? lah and #uided o&er 100
cases correctl%.
2. Ee#al !esource 8entre -htt*;<<lrc.mone%li$e.in/; handled 202 ,ueries in 1ust 0 months
since (eb 2014
0. Banin# and 8redit counsellin# "ith Disha (inancial Ser&ices.
4. Mutual (und hel*line launched recentl%
5. Samir Fa&eri !ail"a% Hel*line; -htt*;<<$oundation.mone%li$e.in<G*a#eHidIJ1DJ/
%e'"eentation: Mone%li$e (oundation has sent 20 memorandums, all o$ "hich ha&e been in
consultation "ith staeholders and consumers on im*ortant issues such as health insurance,
Pon7i schemes, 4dhaar2related biometric 43Ms, retail in&estin#, senior citi7en ri#hts etc. to
*olic% maers and re#ulators includin# !B+, S6B+ and +!D4 and &arious ministries o$ the
#o&ernment. Memorandum on banin# issues has led to Mone%li$e (oundation or#anisin# =*en
House session hosted b% !B+ de*ut% #o&ernor @8 8harabart%.
Founde":
Suc(eta Dalal: )ell no"n $inancial 1ournalist and Padma Shri a"ardee in 200J. @no"n $or
her e.*ose o$ the Harshad Mehta scam in 1DD2 and other articles. )as member o$ S6B+5s
Primar% Maret 4d&isor% 8ommittee $or se&eral %ears, "as a member o$ S6B+5s N! Nara%ana
Murth% committee on cor*orate #o&ernance in 2000, Member o$ +n&estor 6ducation and
Protection (und o$ Ministr% o$ 8or*orate 4$$airs $or si. %ears. 3rustee o$ the
4hmedabad2based 8onsumer !esearch and 6ducation 8entre.
Deba(i Bau; 4 8hartered 4ccountant b% ,uali$ication "ith 2K %ears as a 1ournalist and the
author o$ se&eral business boos. )ored "ith 3he 3imes o$ +ndia, Business )orld, Business
+ndia, Business 3oda%, (inancial 6.*ress and 3he 6conomic 3imes. 8olumnist "ith Business
Standard. 8o2authored the best2sellin# The Scam: From Harshad Mehta to Ketan Pareh "ith
Sucheta DalalL 4uthored (ace Aalue, 'ro"th 4lchem%, Pathbreaers and Plain 3ruth Series on
Stocs, Mutual (unds and +n&estments. He "as a member o$ the S6B+ 3as (orce on the
creation o$ +ndoNe.t maret se#ment and ser&ed as the member o$ the mutual $und ad&isor%
committee o$ S6B+.

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4 June 2014

Hon'ble Prime Minister,

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