[Resolved]  Reliance Mutual Fund — Fraud

My series of emails to the company and SEBI. I have not recieved not even a single response till date


17.09.2008

To,
The Investor grievance department,
Securities and Exchange Board of India

I have not recieved any response from your good office till date. This scam need to be investigated as huge amount of money is involved hundreds and thousands of people have invested their hard earned money in such schemes. The Portfolio manager is a specialised person who is deemed to have thourough knowledge of the market behaviour, he should be untouched by the market behaviour. A good portfolio manager exits from the invested securities at the appropriate time when the market has gained and the value of shares are anticipated to fall and enter into the stocks vice versa. This is a fit case when the portfolio manager kept holding to the stocks when the market was rising and had invested in higher prices and kept holding the portfolio till the market had touched the brim. Thus the investors had not got any benifits but are in a huge loss.

The incative approach on the part of the portfolio manager has made hundreds of the investors to suffer a huge loss. A common man would not have incurred the loss which this portfolio manager had caused to us. The Company levy huge amount of money on a monthly basis as the fee of portfolio manager and the callous approach on the part of the portfolio is aglaring example of criminal breach of trust. It appears that the company through the portfolio manager in guise of the falling market has been transferring the loss suffered in their proprietory account among the mutual fund so that their loss may get distributed among innocent investors.

In the instant case one of the official of the Company had stated that " Further, on the concern over the management of the fund by Mr Sunil Singhania, will no longer remain a concern when one comes to know about the track record of RGF (the fund managed by him) as well as his technical expertise in this field understanding that he has a total experience of over 15 years. He has also earned the right to use the Chartered Financial Analyst designation, conferred by CFA Institute, USA with an additional Certification course for Derivatives conducted by the Bombay Stock Exchange. We would like to mention that he also is a part of the Standards & Practice Council of the CFA Institute, USA, the first and only member so far based in India to do so."
As per the above extract the portfolio manager has sufficient experience to manage funds. However his experience had been a bitter experience to us. In just a period of 6 months or so he has reduced my portfolio by 40% he would require another few months to totally vanish my entire savings. This is a fit case of economic offence triable by Economic offence wing, police department.

I also wondered from your mail that you have been generous enough to have distributed dividends in he past but to distribue dividend you need to first earn profit. I have not recieved any money and the only statement that i recieved shows that I have incurred loss. Further when the market was rising from the level of Rs. 12, 000/- to 17, 000/- why didn't the portfolio manager book the profit at appropriate price.

Moreover one of the official of the company confirmed from me my address and stated that they were not able to send me the statement as the mail was rejected. However the address she referred to was absolutely correct. It appears that Reliance do not have any intention to share the statement for the fact they will be exposed. It may be investigated that how many investors are sent the statement of account on a regular basis.

Some serious fraud is apparent from the conduct of the Company which need to be throughly investigated. There is deficiency in service on the part of the Porfolio manager

Regards

Sachin Sudeer
[protected]


On Mon, Sep 1, 2008 at 10:44 AM, <Preethi.[protected]@relianceada.com> wrote:


Dear Mr. Sudeer,

We certainly understand your concern regarding your investment in Reliance Growth Fund.

Please be advised that Reliance Growth Fund is one of the flagship schemes of Reliance Mutual Fund and is in existence for more than 12 years. It is one of the oldest schemes of RMF and has an impressive track record. Looking at the returns, the scheme has generated vis a vis benchmark, it can be seen that it has outperformed its benchmark index (BSE 100) and other mid cap indices in all the time periods under consideration. We are also very proud to mention that Reliance Growth Fund is one of the only 2 equity funds (other being Reliance Vision Fund) in the industry which has given 100% dividend each financial year for a period of 5 yrs in a row. We are attaching a copy of the fact sheet for August, 2008 for your reference. Please note that all fact sheets are available on our website, www.reliancemutual.com & you may refer the same anytime.


After going through the facts and figures of Reliance Growth Fund, in response to your concern of portfolio depreciation and negative returns, we can clearly state that RGF has outperformed its benchmark index in all the time periods; specially the time period stated by you. At the same time, distribution of dividends consistently, proves that the scheme generates enough cash/profits/appreciation so as to reward our valuable investors with the share in the profits. We would like to add that a funds performance is also based on the stock market conditions.

Further, on the concern over the management of the fund by Mr Sunil Singhania, will no longer remain a concern when one comes to know about the track record of RGF (the fund managed by him) as well as his technical expertise in this field understanding that he has a total experience of over 15 years. He has also earned the right to use the Chartered Financial Analyst designation, conferred by CFA Institute, USA with an additional Certification course for Derivatives conducted by the Bombay Stock Exchange. We would like to mention that he also is a part of the Standards & Practice Council of the CFA Institute, USA, the first and only member so far based in India to do so.

We do understand your concern towards your hard earned money and do appreciate the voice raised with regards to the same. However it is our sincere request to you to kindly revisit and evaluate the fund performance in light of all the information stated above so as to have a consensus view and mutual agreement to enhance our long term relationship.

Also, we are despatching you a copy of your account statement today via Express It courier, consignment number [protected], since we understand from your email that you have not received the same. Please confirm receipt of the same. We request you to update your email id with us, using the transaction slip; attached to your account statement.

For any further information or assistance, please feel free to contact us on[protected] or[protected] or write to us at [protected]@reliancemutual.com. We would be happy to assist you.

Regards,

Preethi Nair
Customer Service
Reliance Capital Asset Management Ltd.


-----Original Message-----
From: "sachin sudeer" <[protected]@gmail.com>
Received: 8/17/2008 12:47 PM
To: [protected]@nse.co.in; [protected]@sebi.gov.in
Subject: FW: Re: Reliance mutual fund - Growth fund or Sinking Fund


Dear Sir,



I request Investor Grievance Cell of the National Stock Exchange to kindly inform me what needs to be done in this regard. Please treat this as a complaint and kindly inform me the procedure to take this grievance any further. Is it the National Stock Exchange who will take su-motto cognizance of the complaint or I have to pursue the same.



This appears to be a scam.

I have serious apprehension on the conduct of the Portfolio manager assigned to manage the Relaiance Growth fund (Mutual Fund). It appears that the portfolio manager has committed fraud in guise of the falling market. Even an amateur investor would not have allowed his portfolio to fall by 40% in 6 months. I don't find any details of profits made by me only the loss is apparent from the investments. There appears to be some serious fraud being committed by the portfolio manager in the account of the investors.

The silence of the company in this regard shall be deemed to be the admission on their part of the illegal siphoning off of money from the account. As they are not able to provide any details of the money invested in the account of the investors. The profit and loss made in those investments and how money has flown in and out of the account of the investor.


Sachin Sudeer
(M) [protected]
Residence;
A-11 Ground Floor,
South City-2 Sohna Road Gurgaon -122018





On Sat, Aug 2, 2008 at 10:57 AM, sachin sudeer <[protected]@gmail.com> wrote:

SEBI/NSE : Please treat this as an investor Complaint and kindly help me

Reliance Mutual Fund: I also request you to look into the matter in public interest as huge amount of money is involved in this and you would appreciate that playing with public money amounts to economic offence. Thus I expect an expeditious consideration by you also in this regard.

Kindly note down my account number [protected] as informed by the customer care. I have been informed that there has been considerable loss incurred by the portfolio manager in my account of about Rs. 4, 000/- till date. Further on inquiry i was told that since your address as not properly mentioned in the application form the statement of accounts were not sent to you. On checking the application It was found that the address was mentioned properly. It appears that the statement of account is not sent by you deliberately.

Further as displayed by you in your web site that the portfolio manager for Reliance Growth fund is Mr. Sinil B. Singhania. Please provide me the details of the portfolios managed by him for your company and any mutual fund in which he has earned profits. Market may fall and rise but what kind of expertise the Portfolio manager holds when he incur about 40% loss in a period of 7 months. Does he deserve to charge service charges when he don't even know to manage an account. I need the complete details of in which scrip the money was invested by the Portfolio manager and the details of how loss has incurred in my account from the inception till date.

Please also provide me the P&L of the proprietary account of Reliance during the period, for comparing the P&L made during the period September 2007 till Date. It seems you are involved in siphoning off the profits from the account of the investors to your proprietary account.

Please ensure that the said details are provided to me at the earliest, for enabling me to take appropriate steps in this regard.


Please ensure that i recieve all the statement of account on my email [protected]@gmail.com







On Sat, Aug 2, 2008 at 10:03 AM, sachin sudeer <[protected]@gmail.com> wrote:

2nd August 2008

Dear Sir/Madam

I had invested in Reliance Growth Fund through Application number 1916742 through sub broker M/s Bajaj Capital Agent Code 395680. I have not received any statement or any details from either you or your sub broker from inception till date. Please give a complete analysis of my account and send me the up-to-date statement of account expeditiously. I have been only receiving the SMS on my mobile about the SIP Debit dates and the amount is being regularly debited from my account. Yesterday Rs. 1500/- was debited from my account through ECS.

However there has been no effort from your side to even inform the investor about his account status. Much more is expected from an esteemed company like you. Please treat this as most urgent and send me my account details and call and inform me about my account status on my mobile number [protected]/ [protected] immediately.