AMC claims to have proactively taken steps to compensate the investors
Two years back investors of Canara Robeco had lost a huge sum of money due to misuse of cheques by an agent - Panacea Human Resource Services Ltd, associated with the fund house.
The AMC claims to have proactively taken steps when the incident occurred by issuing a legal notice to Panacea and its directors to immediately compensate for the losses of the investors. The AMC has de-empanelled Panacea and also filed a complaint with Amfi to cancel the distributor’s registration number.
Speaking on condition of anonymity, a Canara Robeco official said that the AMC had taken necessary steps as soon as the event came to light and had done its best for the affected investors. The ball is now in AMFI’s court, the official added.
Most of the investors who have suffered losses in this scheme it taking the matter to Andhra High court as the regulators have failed to help the investors. In its budget for 2011-12, the regulator has allocated Rs 10 crore to form a self-regulatory organization, to control distributors. Until the SRO becomes operational, agents will continue to remain unregulated.
