What to do in case of default :: Business Line

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Despite all your homework, you may find that the company in which you invested develops a financial crisis and is unable to repay its dues. Or it may simply be a case of ‘loot and scoot'.

The defaults by Lloyds Finance in the late 1990s or Morepen Laboratories in the early 2000s are cases in point.

What should you do then? Once it becomes clear that the company is not going to repay your money on maturity, contact your local consumer or investor forum.

The link investor.sebi.gov.in/investadd.pdf provides a list of SEBI-recognised forums and associations for investors in different regions. SEBI, Ministry of Corporate Affairs and RBI are the regulators in charge of listed companies, unlisted manufacturing entities and listed/unlisted finance companies respectively.

You can also file your grievances through an investor forumwww.investorhelpline.com and check the responses for grievances inhttp://www.investorhelpline.in/ih/Alert/alert1.htm. The Web sitehttp://www.iepf.gov.in/ helps you know the basics of investing and your rights as an investor, including that of a deposit holder.