CS Gulap Agarwalla has raised an investor grievance regarding Axis Bank Zero Coupon Bonds (ZCB), highlighting regulatory lapses and non-updation of bank details. Full details and legal options explained on Choice4Voice.com
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Complaint Summary : Axis Bank Zero Coupon Bond (ZCB) Investor Grievance – CS Gulap Agarwalla Raises Compliance Concerns
| Complainant | CS Gulap Agarwalla |
|---|---|
| Profile | Company Secretary at P. Gaggar & Associates |
| Complaint Type | Investor Grievance / Bond Servicing Issue |
| Company | Axis Bank (Issuer), UCO Bank (Claimed Servicing Entity) |
| Issue Reported | Non-updation of bank details linked to Zero Coupon Bond (ZCB) |
| Regulatory Concern | No official RBI/SEBI notification of servicing transfer |
| Customer Expectation | Proof of regulatory communication, clarity on responsible servicing authority, and resolution under RBI/SEBI guidelines |
Full Complaint Details
CS Gulap Agarwalla, a Company Secretary, has raised a formal investor grievance regarding Axis Bank’s Zero Coupon Bonds (ZCBs).
He submitted a request to update his bank details linked to his ZCB investment. However, Axis Bank refused, claiming that the servicing of these bonds has been transferred to UCO Bank.
The key concerns raised are:
- No RBI/SEBI notification: Axis Bank has not provided any circular or official document proving such transfer.
- Issuer responsibility remains: As per SEBI (Issue and Listing of Debt Securities) Regulations, 2008 and RBI guidelines, the issuer or its registrar/transfer agent continues to remain responsible unless a formal transfer is made and communicated.
- No investor communication: Investors, including the complainant, were never notified at the time of account closure in February 2021.
CS Gulap Agarwalla has requested:
✔ Certified copy of RBI/SEBI communication regarding transfer of servicing.
✔ Details of Registrar/Transfer Agent or successor entity.
✔ Clarification on how and when investors were formally informed.
Until this is provided, he maintains that Axis Bank remains fully responsible for servicing its ZCB obligations.
Regulatory Background
- SEBI (ILDS) Regulations, 2008 – Clearly state that the issuer and its appointed registrar/transfer agent are responsible for bond servicing.
- RBI Guidelines – For listed debt securities, the responsibility cannot be shifted without formal approval and communication.
- SEBI SCORES Platform – Provides an official route for investors to escalate grievances related to securities.
- RBI Integrated Ombudsman Scheme, 2021 – Allows escalation if a bank fails to resolve complaints in a fair and timely manner.
Impact on Investors
- Confusion on Servicing Authority – Lack of clarity whether Axis Bank or UCO Bank is responsible.
- Risk of Non-Payment – Investors may face delays or denial of returns due to unclear ownership of responsibility.
- Regulatory Non-Compliance – Possible violation of SEBI & RBI guidelines.
- Erosion of Trust – Investor confidence in regulated debt securities may be damaged.
Legal & Escalation Options for Investors
- File with SEBI SCORES – Investors can submit grievances online through SCORES.
- Escalate to RBI Ombudsman – File under RBI Integrated Ombudsman Scheme, 2021 for unresolved complaints.
- Consumer Court Case – Investors can approach Consumer Disputes Redressal Commission for deficiency in service.
- Corporate Legal Notice – Demand compliance under SEBI regulations.
- RTI with RBI/SEBI – To obtain clarity if any transfer notification exists.
How Choice4Voice.com Can Help
At Choice4Voice.com, we:
- Highlight investor grievances publicly to ensure visibility.
- Create awareness about regulatory protections under SEBI and RBI.
- Guide investors on filing with SEBI SCORES and RBI Ombudsman.
- Hold banks accountable for compliance failures.
👉 Investors facing similar issues can submit their complaint here:
https://choice4voice.com/submit-your-complaint/
We ensure complaints are published within 24 hours for wider impact.
Original LinkedIn Post
Read CS Gulap Agarwalla’s LinkedIn Post Here
Frequently Asked Questions (FAQs)
Q1. Who raised the complaint?
CS Gulap Agarwalla, a practicing Company Secretary.
Q2. Which investment is in dispute?
Zero Coupon Bonds (ZCB) issued by Axis Bank.
Q3. What is the main issue?
Non-updation of bank details and unclear servicing responsibility.
Q4. Who does Axis Bank claim is responsible?
UCO Bank.
Q5. Is there official proof of this transfer?
No, no RBI or SEBI notification has been shared.
Q6. What regulations apply?
SEBI (Issue and Listing of Debt Securities) Regulations, 2008 and RBI guidelines.
Q7. Does the issuer remain responsible without transfer notice?
Yes, unless officially transferred with investor communication.
Q8. What action has the complainant sought?
Certified proof of transfer, details of successor authority, and investor notification.
Q9. What happens if Axis Bank does not resolve this?
The matter will be escalated to RBI Ombudsman and SEBI SCORES.
Q10. What is SEBI SCORES?
Securities and Exchange Board of India’s grievance redressal platform.
Q11. What is RBI’s Ombudsman Scheme?
A mechanism to handle unresolved complaints against banks.
Q12. Can investors take legal action?
Yes, through consumer courts or civil courts.
Q13. What is a Zero Coupon Bond (ZCB)?
A bond that does not pay interest but is issued at a discount and redeemed at face value.
Q14. Why is investor communication critical?
Because transfer of responsibilities without informing investors breaches transparency.
Q15. Can RBI/SEBI penalize Axis Bank?
Yes, for non-compliance with regulatory obligations.
Q16. What risks do investors face here?
Non-receipt of bond maturity proceeds due to unclear servicing.
Q17. What can other ZCB holders do?
Immediately check servicing details and raise grievances with Axis Bank.
Q18. Has UCO Bank issued a clarification?
No official clarification has been reported.
Q19. What investor rights are being violated?
Right to clear communication, right to timely servicing, and regulatory protection.
Q20. How does Choice4Voice.com add value here?
By amplifying such grievances, pushing for accountability, and guiding investors to the correct legal and regulatory remedies.
Final Note
This case is a reminder that banks must ensure full compliance with SEBI and RBI regulations when handling debt securities.
Until Axis Bank provides official proof of transfer, it remains the responsible entity for servicing Zero Coupon Bonds. Investor protection cannot be left to assumptions it must be backed by documented compliance.
