PANIC GRIPPED 38-YEAR-OLD Delhi-based investor Sandeep Sethi as he frantically switched from his usual investment app to CAMS and MFCentral to verify his mutual fund (MF) holdings. His nervousness was fuelled by the recent uproar over the alleged inaccessibility of funds invested through the popular execution-only platform (EOP) Groww, which sent shockwaves through the investor community.
In June 2024, a post on X went viral, alleging financial fraud committed by Groww. The post said the user's money had been deducted but not invested in MFs, like it was supposed to have been. At 50 million, Groww is the most-downloaded EOP, and Sethi's hysteria was understandable. But Groww issued a clarification, saying it "found that the customer's account was showing an incorrect investment due to a [reconciliation] issue" and that it "deeply regrets the reporting error".
Despite the clarification, many investors who use EOPs platforms that only execute trades and do not provide any investment advice-have turned cautious now and are looking at consolidated account statements (CAS) to check their investments or are requesting consolidated statements from their service providers. However, many cannot see all of their investments because several funds have different registrars and transfer agents, or RTAs.
The Groww incident alerted investors to the potential vulnerabilities of EOPs. As a result, their confidence in such platforms is shaken.
WHAT AILS EOPs?
This story is from the 1st September 2024 edition of Business Today India.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the 1st September 2024 edition of Business Today India.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
The EV Craze
The country’s growing luxury car market is seeing a shift with environmentally-conscious consumers betting on electric vehicles as a sustainable travel option. Though just 6%, the share of EVs in the luxury segment is rising rapidly
The Storage Boom
Data centres are being built at a frenetic pace in india as companies scramble to meet the ballooning demand from mobile phone users and firms adopting al. Can the country’s energy infrastructure keep up?
India Beckons
Owing to rising incomes in India and overall wealth expansion, luxury brands are wooing the country like never before
The Pearls of The Sea
Caviar, that rare food, is considered the epitome of fine dining. Here is everything that you need to know about it
66.Brand persona should define the core"
I’d say this was a strategic pivot. We had an iconic brand, but had, over time, evolved into diversified lines of businesses that could no longer be represented within the confines of our ‘name’.
Unwind in Style
Here is acomprehensive list of top tech picks that help you unwind by blending perfection in performance with luxury
A Lifelong Affair with Inspiration
In my art journey, the diversity of my acquisitions mirrored the expanding horizons of my understanding of art
Make it Bubbly
Champagne is much more than just a symbol of celebration and success. Know about its nuances beyond the bubbles
Palatial Splendour
Buoyed by renewed demand, sales of the glitzy mansions of the ultra-rich are surging like never before. Real estate majors are looking to capitalise on this by launching luxury offerings in record numbers
Of Beaches and Cream
GianChand Single Malt Whisky