Business Ethics and Corporate Governance, Second Edition

PROBLEMS OF INVESTORS IN INDIA

Investor protection is a wide term that covers various measures to protect the investors from malpractices of companies, brokers, merchant bankers, issue managers, registrar of new issues and so on. It is also incumbent on the investor to take necessary and appropriate precautions to protect their own interest, since all investments have some risk elements. But where they find that their interests are adversely impacted because of malpractice by companies, brokers or any other capital market intermediaries, they can seek redressal of their grievances from appropriate designated authorities. Most of the investor complaints can be divided into three broad categories:

1. Against member-brokers of stock exchanges: Complaints ...