Online Investor’s Association of India (www.oliai.in) aiming to empower online investors in India through professional assistance has already brought to focus the losses that Investors are suffeing because of the frauds of employees of online broking firms.
SEBI the regulator has not been effective in redressing the grievances of investors when such frauds are brought to light. The broking firms themselves are insensitive to the woes of their customers.
In the light of the above, the only remedy for investors is to approach the Police with a complaint and simultaneously moving the Adjudicator for compensation.
However, as a long term solution to this problem, OLIAI urges the Insurance firms in India to work out an appropriate insurance plan that protects the online investors from the losses arising out of Cyber Crimes (Which are principally the employee frauds at the broker’s office).
If any Insurance company in India such as Tata AIG or HDFC or even the public sector companies are interested in developing such a policy, OLIAI would be happy to lend its support both in structuring such a policy and to promote its use amongst the investors.Â
These policies would also ensure the broking firms adopting proper security measures to reduce or prevent frauds and eventually contribute to a safer investment environment.