Letter to BS: Sebi must work to safeguard retail investors' interests

This refers to the editorial “Protect ordinary investors” (December 5). Notwithstanding the rise in loan-related frauds, many lenders are in the habit of disregarding the guidelines of the RBI, thus benefiting the unruly borrowers causing losses to the banks and eventually, adversely affecting the financial system. It is imperative to conduct a thorough probe into the granting of loan against third party shares belonging to the retail investors. In this case, the brokers pledging the shares must have an irrevocable authority to pledge the shares. If it is in the negative, it denotes that the broker firm that created the