As you know CAMS is a registrar hired by AMC to service their distributors and clients. Irrespective of clients on-boarding intermediary, CAMS should service that client with completely neutral action; moreover CAMS should abide by the privacy norms of the proprietary data - in regular cases its distributors and in Direct cases it should be AMCs ! In none of the case CAMS should use the data for any other purpose than service/transaction related communication. However, in past they have done following data encroachment actions :
1. Sent more than 50 marketing e-mailers and messages related to MYCAMS Mobile app, to clients, without any permission or approval from the actual data proprietor. Moreover, they mixed the offers across both regular and Direct clients
2. Recently they started sending the staff and employees to the large corporate clients for activating their special online transaction tool. Their staff has a target provided from the HO for covering as many corporates as possible. Knowing the fact that this online new tool has both Direct and Distributor option there.
Imagine, you are managing a 10 crore accounts and have your reputation built over years of servicing, and suddenly a person reaches that client and offers a service bypassing you ! Moreover through their introduction as CAMS/registrar, they get the easy entry there- you are just not sure what they talk and what they present ! We need to know , "what is the commercial interest of CAMS here? Is it the third party developed tool they are introducing? If not then, why they are not using us to get this tool activated, instead of reaching to the clients directly ?"In first place they have no right to market any third party product to our clients; secondly,they can not send any marketing E mailer or external tool introduction to the clients directly . Under the legal privacy norms, they should send the information material to AMC and distributors. In turn, AMC will send the communication to all the 'Direct' clients and distributors will send the communication to their clients, if they actually choose to do so!
Our association wish to file a legal suit to CAMS for financial loss, commercially motivated actions and breaching the basic law of 'proprietary data'. If proven guilty, they will be forced to pay us the compensation as per standard rate under 'pay per click' basis for all their past marketing E mailer. This means an IFA having 1000 clients would have received around 5000 marketing E Mails from CAMS, thus translating to a compensation of approximately Rs 5 lacs( assumed rate per click Rs 10/-)
Do send your feed back or join the petition if you believe its really necessary to take CAMS head-on, to stop their immatured actions.