Dear Friends,
There is a serious problem in SIP for CAMS related AMCs. From this month MAY 2011, many of my clients who r investing in SIP for CAMS related AMC's through Nationalized Banks have started calling me in regard with thier SIP not being debited from their bank a/c. When I tried reaching AMC as usual and verified their answer was not up to the point, they were telling all sorts of stories that RBI has cancelled the bank MICR Code and hence forth we can not do any ECS debit for any purpose be it MF/ Insurance / Car Loan / Personal Loan / Home Loan / etc...
I was shocked to hear this then today 14/5/11 went along with my Client, to his Bank to find out what is the exact problem why there MICR code is rejected by RBI. The Manager of that particular Branch, Started laughing on us on hearing the same then as a child like I showed them the SIP statement that his SIP was cancelled. Then the Bank MAnager pitied on us then told that RBI can withdraw MICR Code only if the Bank closes that particular branch. He also told us that RBI has issued a notice to stop ECS debit on a/c which show their old A/C no i.e non core banking A/c nos. Even though our SIP has got core banking details our SIP debit with DSP BR and IDFC had got cancelled for this reason. Then today I went to CAMS along with my client to find out that it not our fault/ banks fault. When we spoke with concerned people along with the AMC staff, every one was giving different answers. Then 1 staff in CAMS had told us that there r more than 1 crore SIPS running how is possible to which A/c is core banking or non core Banking hence they hv taken a bold step of cancelling all the SIPS in above 2 AMC as a first step, When all the clients run back to the AMC like us and lodge a complaint then will reprocess the same SIP.
So I request you all to give me solution how to go fwd in this issue is practically possible for 1 IFA to check all the SIP debits now and individually ask the AMC to process the SIP. For this Client I have been following with both the AMC and out of the 6 SIPS 3 has been processed and 3 yet to be done. It is foolish on part of the AMC/ CAMS to tell us same reason for SIP cancellation when they themself has reprocessed the balence 3 SIP.
REgards,
Alagappan T
ARN- 39129841055577
12 comments:
Thanks for the update Mr. Alagappan (Chennai SIP King)
This is really a serious one.
Will some one take care of this issue immediately........... Immediate reply from AMC / CAMS end is highly appreciated.
Ramesh Bhat
IFA Galaxy
How can CAMS unilaterally do this? what is the regulator doing and what is our AMFI doing?
Wake up supercops
Best Regards
Venkateswaran M
Pisces Investment Solutions,
2 B, Kenton Towers,
Above HDFC Bank Branch,
Vazhuthcaud ,
Trivandrum -695014
ph-91 471 2336536
mobile-91 9847060869
mobile -91 9895991602
Dear Sir,
If what CAMS say is true, then it is ridiculous.
I wonder whether they would have really meant it that way.
If all SIPs of DSP & IDFC are being stopped by CAMS, it is not only a cause of concern for us but for these 2 AMCs as well.
Every advisor and AMC knows the effort behind bringing in incremental assets especially through SIPs.
I hope the respective AMCs themselves answer this and also get a written reply from CAMS in this regard.
I hope you might have read a communication from L&T AMC few days ago.
RBI has penalized the ICICI Bank for bouncing of lot of ECS SIP debits due to insufficient funds. So if one AMC’s SIP is bounced due to lack of funds, the bank is stopping all the other SIPs which are running from that account.
Failure of SIPs cost in terms of money, time and energy for both advisors and AMCs.
Though whether someone honours his commitment is beyond our control, still we can do some screening based on our own experience and not make people commit for SIPs who may not have any motivation in honouring the same. It is a waste of time for everyone.
If someone wants to discontinue SIP, the right way is to give a letter to that effect and not let the ECS debit bounce.
Regards
Muthu
D.Muthukrishnan
Certified Financial Planner CM(CFPCM)
Personal Financial Advisor
Mobile: +91-98404-03431
Email: muthu@wisewealthadvisors.com
Dear all
This is a very serious problem as all the hard work of the ifa goes waste when a sip stops without any reason. this should be resolved asap.
Thanks
RAJESH KHOSLA
WWW.JASSIINFOWAYS.COM
9815225025
All the AMC's are promoting SIP's in a big way. This kind of problems will have a great impact on the mutual fund industry. CAMS can't act unilaterally without informing either the client or the advisor. I don't understand how the concerned AMC's are mute spectators to such arbitrary action of Cams. MF's should pull up their socks and try to find a immediate solution otherwise it will be another jolt for the industry. HOPE ALL THE AMC OFFICIALS ARE AWARE OF THIS?
Dear Friends,
In my previous mail I had told that CAMS had taken a bold step of cancelling all SIPS in DSP BR and IDFC MF having debit in nationalized bank. Now I like tell that not all SIPS are stopped I hv checked in some of my existing clients bank statement they their SIP are running smoothly even in above said AMCs. I Come on my words that all r cancelled but they started cancelling SIPs even without letter by clients anyways 2 of clients SIPs is cancelled trying to find out whether huge chunk of sip is cancelled or not.
Regards,
Alagappan
9841055577
Dear Sir,
It is a very serious problem for all IFA Community. The same and different problems has been faced for two SIPs with DSPBR Mutual Fund in last year but the AMC Chennai & coimbatore branches has not responded properly and the both clients has been withdrawn their SIPs because non co-operation of DSPBR AMC of both branches. In my opinion, No AMCs are not at all interested to solve the investors problem but they want business only.
I request that we want a SEPARATE FORUM to solve this kind of problems.. Please think very seriously about our forum.
With Regards & Thanks.
V. KASINATHAN,
SALEM.
Dear Sir
This issue has arisen based on the circular from RBI (which is attached) whereby penalty has been decided to be levied on the sponsor banks if the ECS return percentages goes beyond the tolerance limit. The penalty is as high as Rs 1000/- per return transactions.
As a result, the sponsor bank (ICICI Bank in our case) has been screening all the ECS submitted for debits and may return any transaction based on the past history for that particular account number of the investor. If the investor has defaulted across any payments not restricted to DSPBR, but across any other ECS payments for say other mutual funds payments, utilities payments, etc over the last 3 months, the future ECS debits may not get processed.
We would be reversing the SIP installments based on the information received from our ECS vendor.
We have escalated the problem we are facing to our HO on this particular issue.
Regards
Vijue
Dear Mr.Alagappan,
Request you to provide us with folio no / Name / details of the investor - so that we can investigate further, and respond to you.
Sunitha Thomas
Deputy Manager- Customer Delight
Computer Age Management Services Pvt Ltd
Rayala Towers, 158 Anna Salai,Chennai 600002
044 - 30212622 : Mobile-98411 51628
t_sunitha@camsonline.com
Yes This is True - Reliance AMC, Registrars M/S Karvy are perhaps the worst in
this case. Disappontingly, they are absolutely callous even in the case of
NFOs. I lodged 3 applications on a particular day in respect of Reliance Gold
Saving Fund and all two SIPs were not effected and in the third case there were
several data entry mistakes which are yet to rectified.
More over, there is utter chaos in payment of Brokerage, as well. My brokerage
has not been depositied since Oct 2010. Initially, stopped after the AMFI
registration expired in October. All the renewal documents and KYD were
submitted in Digital Form and Physical Form on 11th Januarry, which were
resubmitted again on 01.04.2011 and in May 2011. Tll now no response!!. In fact
we all should join to boycott Reliance AMC
R. Varadarajan
I THINK, WE R LIVING IN A COUNTRY OF FOOLS. AT LEAST 50% PEOPLE WORKING IN PUBLIC SECTOR/ SEMI-PUBLIC SECTOR UNITS
ARE NOT BETTER THAN 'BAISAKHNANDAN'.
BIMAL(98300 41669)
I have seen cases where the Banks have wrongly rejected ECS debits and there is nothing the AMC can do about it.
After registering for ECS debits and some debits going through Banks have rejected - reason - signature mismatch
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