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Investor protection fund to be operational soon

Our Bureau

NEW DELHI, Dec. 13

THE investor education and protection fund is to made operational shortly, under the Chairmanship of the Secretary of Department of Company Affairs (DCA).

The Secretary, DCA, Dr P.L. Sanjeev Reddy, had a meeting with representatives of RBI, SEBI, National Stock Exchange (NSE), Unit Trust of India (UTI), other financial institutions and three professional institutes under DCA on measures for strengthening t he protection for investors, here on Wednesday.

At the meeting, it was agreed that all agencies will provide integrated co-ordinated approach to DCA in evolving a right mechanism for redressal of grievances of investors by empowering them through a sustained awareness and education programme, solving investors problem online with the help of adequate networking and linkages among all the agencies.

It was also agreed to involve the three professional institutes of chartered accountants, cost and works accountants and company secretaries to strengthen the disciplinary action for making the mechanism for redressal of investors grievances effective.

A decision to have a `mother portal' for investors' protection in all the three institutes was also taken. The portal will channelise investors' complaints to concerned agencies for compliance. The role of compliance officers in companies such as company secretaries and chartered accountants will also be made effective.

All the agencies agreed to launch sustained investor awareness, rights and education programme under the investor education and protection fund set up under Section 205 C of the Companies (Amendment) Act, 1999. It was also agreed to hold similar co-ordin ation meetings regularly.