Are your Mutual Funds safe? Part 2 – Subramoney

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Since I published Mr. A’s summary of what happened, I thought it was just fair to let the Mutual Fund house to give its side of the story.

I seriously wish they had given a better reply, but they have given some reply. I am not judging the reply, nor am I commenting on its language, tone, etc. Here is the letter….IN TOTO except for some give away folio numbers etc. So here is the reply by the Fund House, re-produced in toto

Dear Investor,

Greetings and warm wishes from Mutual fund.

At the outset, we sincerely apologize for any inconvenience caused while you tried to redeem your units recently.

Please allow us to explain the reasons for the same.

In order to safeguard the interest of our investors from any fraudulent encashments, we follow various checks and balances from time to time. Your case was specific to the process we follow in case of folios which have multiple investors with different PAN numbers but the same default bank account. As part this process, we initiate a “penny drop” to verify such bank accounts.

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In case the bank account verification indicates an error, we flag this account for verification before any further transaction. In your case, there was a name mismatch error indicated by the process between our records and those of the bank. Hence, a temporary escrow was created as a safeguard to verify your bank account prior to any transaction. The same was successfully verified and your transaction was allowed post this verification.

We understand there was a delay to execute your transaction, but it was purely to safeguard the interest of our valued customers.

Hope this clarification was useful.

We once again apologize for the inconvenience caused.

For any queries, our investor line is available to assist you from 8 a.m. to 9 p.m., Monday to Saturday, on our toll free numbers at 1-800-or 1-800- and international callers can reach us at 91-

—–Original Message—–
From : A(a@gmail.com);
Date : 3/8/2021 2:29:15 PM
To: working@fundhouse.com);
Subject :Folios: xx62, x19

Hello,
Please refer to the folios: xxxx62 (Large Cap fund) , and xxxx19 (Midcap fund). I have online access to transact on these folios. Today morning I tried to sell the units online, but got a strange response that there are no units available for sale. Then I call your customer service number and spoke to S, the customer service representative and raised this issue. 
S told me that these units are under hold, and when I checked, I found that on Feb 12 a transaction called ‘pledged’ had been executed in both these funds in the aforesaid folios. I have never ‘pledged’ any of these units with anyone. How did this happen? Please refer to the reference numbers: CSCasu/C14xx65 and CSCUS/C14vvfrd6 regarding this issue I raised with S this morning.
I’m very worried, and expect an immediate response to this and remove this block, and enable me to sell the units. Please respond at the earliest.
Thanks
A.ReplyForward

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Subramoney

Subramoney

As a professional trainer, Subra trains a lot of people – corporate employees, promoters, non-finance managers, fund managers, entrepreneurs, life insurance agents, journalists, PR agencies, and anyone who wants to learn. His style is simple – He tells stories of real people, real experiences, and breaks down complicated topics into easy to understand lessons.
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