Established in 1983, Consumer Unity & Trust Society (CUTS) is a leading consumer organisation in India engaged in several areas of public interest, in the fields of consumer movement, health, environment, investor education, economical and social reforms. CUTS is also a registered Investor’s Association with SEBI. SEBI has sanctioned a grant for establishing two Investor Education & Grievances Cell at Jaipur and Calcutta, and also for organising seminars on Investors’ Education on capital markets in various cities of Rajasthan and West Bengal. Recently, it conducted seminars in Jaipur & Calcutta on 'Investor Education on Capital Markets' on 12^th December 2000. D. R. Mehta, Chairman, SEBI, presided over the meeting and shared his valuable experience about capital markets with the investors.

In its full swing, the centre will be capable of carrying out the following responsibilities:

• Maintaining the investors’ grievance cells at the Jaipur & Calcutta offices,
• Acquiring/maintaining of literature on capital markets,
• Publishing informative newsletters and briefing papers,
• By utilising the latest communication medias, creating a fast-track (quick) response system to minimise the grievance redressal time and development and maintenance of database on companies.
• Organising seminars and lectures to enable investors to learn from the experience of experts from the financial sectors.

The aim is to create a stock market that is fairer, more free, and above all, one that better serves the interests of the investors. Educated & empowered investors always allow the market forces to play their role to shape a fairer and efficient competitive market. In the past, the investors, small and ignorant, have had very unpleasant experiences in the stock market. 

Through the years, it is experienced that the worst sufferers in the market are the small investors who have little awareness about the changing market scenario. With the increasing role of globalisation & liberalisation in the world economy, the Indian stock market should keep itself in touch with what is happening in the world. 

Foreign Institutional Investors are becoming major participants in the Indian Stock Markets. They have a global investment perspective and independent country market evaluating criteria. To generate faith Indian markets have to become more transparent, more informative and encourage greater participation from the institutions and the individuals. Better-educated and empowered investors play their role in stabilising the market which itself generates faith among the investors who are looking forward for better investment opportunities. These investors strongly influence the national economy. 

Therefore, it is the joint responsibility of SEBI, the stock exchanges, the government and the non-government organisations to equip small investors with the necessary information and understanding about the intricacies of the functioning of the stock markets so that they can ensure guaranteed & safe investment avenues.
 
 

Background & Context:
A potential investor invests in the stock market with certain expectations about the performance of the company, the prospects of income from and/or the capital growth of the security and the corporate benefits that may accrue.

While making a decision, the investor evaluates the attendant risks, especially as the expectations on income and/or growth may not materialise. An investor in debt instruments has recourse to redeem the investments from the company besides the market. But as an equity shareholder, the investor can realise value only through the market. Further, there are risks in the trading and transfer of securities.
 

Rights of a Shareholder as an Investor:

As a shareholder in a company one enjoys certain rights, which are as follows:

• to receive share certificates, on allotment or transfer as the case may be, in due time
• to receive copies of the abridged annual report, the balance sheet, the profit-and loss account and the auditors report
• to receive dividends in due time once they are approved in general meetings
• to get corporate benefits, such as rights and bonus share, once they are approved
• to apply to the Company Law Board to call or direct the annual general meeting
• to inspect the minutes book of the general meetings and receive copies thereof
• to proceed against the company by way of civil or criminal proceedings
• to apply for the winding up of the company; and
• to receive the residual proceeds

• to receive interest/redemption in due time
• to receive a copy of the trust deed on request
• to apply for winding up of the company if it fails to pay its debt
• to approach the debenture trustee with any grievances

As rights and duties go hand in hand, the shareholder has the responsibility to remain informed, to be vigilant, to participate and vote in general meetings and to exercise his rights individually or as a group.

For more information please contact:
Deepak Saxena
Investor Education & Information Cell,
Consumer Unity & Trust Society,
D-217, Bhaskar Marg, Bani Park, Jaipur-302 016
Ph: (+91 141) 2282482, Fax: (+91 141) 2282823, 203 998
E-mail: cutsjpr@sancharnet.in

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