Banks are the institutions, we put our faith in. We think our money is in safe hands and we usually don’t raise questions on their credibility. The following account will open eyes to what happens when we blindly trust our banker to be our financial consultant.
Well-known actor Suchitra Krishnamoorthi married director, actor, and producer Shekhar Kapur in 1997. They got divorced after a decade and Suchitra received few crores in alimony as a means of livelihood for herself and for her daughter.
Her bank (HSBC) alleged sniffed out the hefty deposit in her savings account and enticed her into its PMS (Portfolio Management Services) promising 24% returns per annum.
She trusted her banker and handed over Rs 3.60 crores by signing a POA that is akin to signing one’s own death warrant, as it authorizes the bank to do whatever it pleases with the client’s money.
The result after five years was a significant loss that included 83 lacs investment and 29 lacs of commission paid, cost of the insurance policy and the tax.
When she wished to surrender her insurance policies, the bank didn’t act by contending that they no longer had any tie-up with Tata AIG.
Her appeal to the Economic Offences Wing was dismissed.
Market watchdog, the SEBI (Securities and Exchange Board of India) intervened and found that the money was invested in 38 different funds, and many of them were not in line with her risk profiling’.
Finally, her losses were ‘Amicably Settled’ after a four-year-long battle with the global banking major.
If a well-known celebrity could be cheated in such a way, it is surely happening routinely with others.
Think about it!