Who is to Blame??
No sooner had SEBI announced of its move to treat mis-selling as fraud, there were reverberations felt around the entire mutual fund industry. Coming close on its heels was the news of the london -based banking giant HSBC suspending MF, insurance sales in India amid allegations of mis-selling and certain “sharp practices.” Many other ‘big players’ were sufficiently ruffled.
Better late than never.
But this is neither the first nor a random instance.
Like HDFC Bank selling ULIPS by falsely projecting them as Fds, a Citi relationship manager embezzling clients money to the tune of Rs 400 crores, or Kotak Mahindra bank hustling its HNI clients to buy high-cost low-growth investments, or Aditya Birla Money incorrectly representing the risk associated with one of its products. These are some of the instances that dot the mis-selling Wall of Shame. » Read more..