Investor Issues
No Action To Rein In Toxic Products

The Financial Conduct Authority of the UK has banned the sale of a set of ‘risky’ investments to all but the super rich. When will Indian regulators act?


Ponzi and collective investment schemes (CIS) thrive all over the world because of powerful political backers. But a post-2008 shift in regulatory focus from caveat emptor (buyer beware) to vetting and restricting the sale of potentially harmful or toxic products is now turning the heat on these dubious schemes as well. The Financial Conduct Authority of the UK has banned the sale of a set of ‘risky’ investments to all but the super rich—people with an annual income of over £100,000 or investible funds of £250,000—from January 2014. The UK regulator classifies these as sophisticated investors who ought to understand the risks involved.

Interestingly, the CIS targeted by the regulator are investment in overseas property, fine wines and traded-life settlements. Investors in the UK had invested over £4 billion in such unregulated schemes and their losses run into millions of pounds. Interestingly, it turns out that UK investors were still being sold teak farms and bamboo plantations.

Unfortunately, the Indian situation is worse. Lakhs of people throughout India lost over Rs10,000 crore to plantation scams in the mid-1990s. Since then, there has been a string of high-profile failures, such as Citi Limouzine, SpeakAsia and Stock Guru, which raised Rs1,000 crore in a matter of months. Yet, our regulators and politicians refuse to initiate tough action. Dodgy companies, such as QNet and MMM India, are still luring the educated, but financially gullible, youngsters. More criminal is the refusal to rein in chain-marketing schemes, such as Saradha, MPS Greenery and Rose Valley, which have wreaked financial havoc among the low-income group in West Bengal and nearby states leading to 18 suicides so far. All these companies have enjoyed the patronage of powerful regional politicians.

Last week, former Union secretary EAS Sarma wrote to the ministry of corporate affairs (MCA) exhorting it to work with the financial regulator to evolve a way of tracking shell companies which are used to launder black money through a complex web of entities. He pointed out that every major scam in India uses a network of shell companies to evade detection. But this, too, has gone on for decades. The most famous of these were the shell companies of the Reliance group, exposed by the Indian Express in the mid-1980s—a decade before India embarked on its economic liberalisation programme. Using layers of shell companies to launder money through overseas tax havens and back into the Indian stock market has increased exponentially since then.

Consequently, we have no clear regulation, or legislation, to protect people from harmful and unregulated products. Only  a few large CIS manage to attract the attention of the market regulator.

User

COMMENTS

Agyat Vyakti

9 months ago

Off the topic. This is just for awareness.. Qnet and MLM are using friends and relatives to dupe you... You may like to read Qnet modus operandi with screen shots and facts and how to avoid them here ... Please share for public interest.. Qnet Scam in delhi by Ashwin Baluja and Prithvi Raj Grover http://qnetindiascam.blogspot.in/

gurupreet

3 years ago

Now Absconding Accused Vijay Easwaran disowns "QNET INDIA"

These are experts taken from the interview of Absconding Accused Vijay Easwaran

“QNET operates in India through a Franchise company hence Absconding Accused Vijay Easwaran has no involvement in it, he is neither a director nor a shareholder of Qnet India.

He further threatened to seriously think of Pulling out of INDIA.”

BOSS, you are talking of pulling out? YOU and YOUR SCAM will be KICKED out of my nation INDIA wait and see and this will not be the FIRST TIME that you are KICKED at your FAT A$$ and thrown out, will follow your SHAM company and expose it till you call it QUITS, the sooner you PULL OUT the better warna you know that saying “Badey Beaabroo ho kar terey dar sae nikley”

So Mr. Absconding Accused Vijay Easwaran if you have a BRAIN to think of new new SCAMS there are people who can work together to EXPOSE your SCAMS...r u ready for it now….hahaha

gurupreet

3 years ago

Fatwa against the nature of business in which QNET indulges…

Some IR asked this question emphasizing again and again on the word “HALAL PRODUCTS” but the council answering this question sees through the EVIL DESIGN and pronounces this business of “NETWORK MARKETING USING WATCHES AND JEWELLERY AS HARAM”.

Question: 20938
Saudi Arabia
I want to know about one business. Which is as following. Sir the business name is network marketing. The process is that I buy one product which is truely HALAL.e.g wathces, Jewellery etc. Aftre buying the product the company from where I bought the products asked me whether you want to become our business parter If I said Yes. Then I become the business partern of that company. And the money I paid to buy the product is my investment. Now if some more persons come to buy the product from this company through my refrece. Then company will give me commission let say 3% to 6% of each product. and the products are truely HALAL. And there is no cheating also. If I make the marketing of this company and asked the people to buy more product from this company then my i will get profit. If i stop then i will not getting anything. Please let me know whether this business is HALAL or not ... i shall be very thankfull to you if you email me this answer.
Answer: 20938
Mar 28,2010
(Fatwa: 548/L=186/tl=1431)

Network marketing involves cheating and invalid condition. Also, it involves earning profit by unlawful means; hence this business is unlawful according to Islam. It is not lawful to become a member of the company and receive profit.

Allah (Subhana Wa Ta'ala) knows Best
Darul Ifta,
Darul Uloom Deoband

The FATWA can be seen here http://darulifta-deoband.org/showuservie...


gurupreet

3 years ago

Seminar of Illegal MLM/Money circulation/Binary Marketing Schemes on 20th of September 2013 at 3.30 Pm, Free entry, Please register A.S.A.P.

Come on Friends a golden opportunity for us LIKE minded people to come together and share our thoughts and experiences regarding this menace being played in India on the name of MLM/Network marketing and what not. LETS MEET !! YES !!

Saradha, Speak Asia, QNet, City Limouzine, StockGuru India, Sahara, MPS Greenery, NMart Retail… All these start as hot, new, investment opportunities and as alternative careers that offer high earnings and ways to escape the drudgery of 9-to-5 jobs. But, eventually, most of them fetch only small additional income and, worse, encourage you to lure and mislead your closest friends and relatives. You need to know how multi-level marketing (MLM) schemes and ponzis can destroy a large chunk of your savings or push you into debt. Understand the mechanics of these schemes, the laws that are applicable to them and why regulators fail to rein in dubious enterprises before they cheat thousands of people. Understand the basics of how to keep your money safe—the first step to smart investment! Collective investment schemes are not even under SEBI's regulation.

Sucheta Dalal, founder trustee of Moneylife Foundation and Managing Editor of Moneylife magazine, is one of the best known financial journalists in India. She has worked with many of India's leading newspapers including Times of India, Indian Express, Economic Ti mes and Business Standard. She was awarded the Padma Shri in 2006 for her investigative journalism spanning over 25 years which included exposing the Harshad Mehta scam in 1992. Sucheta Dalal will be conducting this seminar.

For registration please Contact:
Seraphina / Komal
at 022-49205000 or
email [email protected]
Log on to
foundation.moneylife.in


gurupreet

3 years ago

This video is so FUNNY, every one should watch it..will lighten up your day :)

http://www.youtube.com/watch?v=UkuPGLEjv...

Say thanks to creator James for doing this :)

gurupreet

3 years ago

Thank you GUYS for providing the information of teams like Infinty, Solitaire, Faith etc which are active in India. I thank you for also providing us the names and contact details of the people behind these TEAMS.

I request you all to please provide details of Systems and V-Cells which are still active, Please provide names of city, meeting place and details of individuals organizing these Systems and V-Cells.

Please email all details on [email protected]

Jai Hind
Guru

As usual all details you are providing will be kept confidential.

gurupreet

3 years ago

ABSURD and STUPID Claims of Bio Disk as per so called “Inventor” and official trainer for “India”

Point 10 is the most stupid one...which ones you think is the most IDIOTIC of them all?

Please post in your comments :)

1. Changes structure of water molecule and energizes water.

2. Transfer of energy from bio disk to water.

3. Changes taste of wine.

4. Turns cheap whiskey into something similar to Johnny Walker.

5. Drink twice as much whiskey and not get drunk.

6. Plants grow faster.

7. Turns fruits and vegetables YOUNGER.

8. Changes characteristics of cosmetics.

9. Fish will grow faster in bio disk water.

10. Use petrol over Bio Disk, Car will go faster and quicker.

11. Rub Cigarette on bio disk and cigarette , Helps reduce smoking and helps quality of life.

12. Turns normal water to Zam Zam water.

13. The inventors of the BioDisc claim that it energizes water or any other liquid to help treat migraines, stress, stroke, diabetes, insomnia, enhance the immune system, detoxify cells, increase shelf life of products among other benefits. It is a laundry list of indications that have no clinical proof.

14. Prevents harm full effects of radiation.

15. Helps cure Kidney Stone and dissolves it.

16. Detoxifies the whole body.

17. Helps cure rashes in 5-10 minutes

18. Cures cuts and no scars left behind.

19. Hair die will not give itchy feeling and color will send longer and deeper.

20. Keep in fridge and everything stays FRESH longer.

21. Turns OLD fridge into Bio-Fridge for free.

22. Fresh orange juice will last 18 months.

23. Milk will last a least 10 days instead of 3 days,

24. Fresh vegetables will last more then one week.

25. Normal tap water becomes similar to spring water.

26. Bio Disk energy field can expand almost size of foot ball field.

27. Breaks larger water molecules ofH2O into small small H2O.

28. Helps in treatment of diabetes, Glucose levels will come down and energy will increase.

29. Cell metabolism increases by drinking bio disk water.

30. Bio Disk water absorbs 3-4 times more water then normal water.

31. Seeds sprout in half the time.

32. Common cold gets cured in 1 day instead of 10 days.

33. Medical bills will come down.

34. Bio Disk water results in whole body rejuvenation.

35. Increases stamina.

36. Helps in pain relief be it in joints of the legs, ulcer kind of stuff, pancreas, use for vision, for kidney etc

Uff…I cant take this crap any more….what CRAP…CRAP... CRAP…CRAP...

gurupreet

3 years ago

All these words or sentences means the SCAM called QNET…

Listed below are some of the lines or words which mean nothing but QNET aka SCAM

Owner at Global marketing project
A Visionary at Global Marketing Project
Retired at I am THE COMPANY
e-Entrepreneur ! at Entrepreneur
Co Founder at My Office My Health
Global Marketing Projects at E- Enterprenuer
Works at Self Employed and Loving It!
Global Partner at Qnet
Worked at I am unemployable
Business Owner at Business Owner of a Global E-Franchise
Worked at Qnet
Past: THE V and QNET | Faith Egypt | Team Bring It

Global Entrepreneur at QNET (Official)
Past: InService Brotherhood Bootcamp
Works at Achieving the Dream
Chief Executive Officer at Unemployable
Works at Retired
Prosperity Consultant at Faith - Empowering You, Life & Business Coach, JPO Consultant, Networker at Tigers - Leveraging Vision andIndependent Consultant at QNET (Official)
Past: Genpact
Studies Leadership management style at Swiss E-learning Institute
Former Partnership at QI intl
Works at Self Employed and Loving It!
Worked at Honkong Based Multi Billion Dollar Company
Worked at Self-Employed (Business-Entrepreneur)
Retired of a JOB at Social Entrepreneur
Partner at ßusiness of Imp0rts & Exp0rts
Owner at E-Entrepreneur
Works at Qnet.net
Chief Executive Officer at Briltime Corp


If you see any of the above keywords on social media profiles of people trying to catch up with you ..just RUN RUN RUN :P

Regards

RAVINDRANATH

3 years ago

Good. But why wait till January 2014. Why not from immediate effect?

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Honest Bankers in Cobrapost May Soften RBI Rap

Will the honest bankers caught in Cobrapost sting operation help soften the RBI blow on erring banks?

A third set of revelations by the Cobrapost sting operation on how bankers help to launder ill-gotten cash now covers HSBC India and Standard Chartered Bank as well. What has, however, made bold headlines is its revelation that a set of honest, upright bankers had flatly refused to bend the rules and launder unaccounted money. Cobrapost showcased five such bankers: Balasubramaniam of Axis Bank (Hyderabad), SK Garg of Bank of Baroda, Anurag Prakash of Canara Bank, Ashish Agarwal and Akash U of HSBC India. Anurag Prakash even points out that the “RBI is very strict about these things.” However, for Cobrapost, there may be a twist to the heart-warming tale.

We don’t know whether the five have been felicitated by their respective banks or not; but these five upright bankers may have saved their employers from strong action by the Reserve Bank of India (RBI). So far, RBI has fined three private banks for various irregularities detected during its inspection. We learn that as many as 15 show-cause notices have been issued by the regulator. But, now, the banks can use these honest bankers to forcefully argue that they do not encourage employees to break the rules, much less launder black money. In effect, banks would expect everyone to believe that the willingness to launder black money is not a reflection of institutional tolerance (or encouragement) but an employee fraud.

The HSBC case is especially ironical. In December 2012, it paid nearly $2 billion to settle charges brought by US authorities that it had helped Mexican drug cartels launder funds through the US financial system, and that it worked closely with Saudi Arabian banks linked to terrorist organisations. The settlement was considered a sweetheart deal that let the Bank off without prosecution or criminal charges. And this from a country that ruthlessly jails individuals for violating drug laws and has not hesitated to put a string of celebrities behind bars. Yet, in India, HSBC can claim, with some credibility, that it has a “zero-tolerance policy for breaches of law and regulation” and will take “appropriate action, including dismissal” if an employee is found to have breached its policy. RBI, which is already rather soft on banks, will find its hands further tied by India’s delicate foreign exchange balances.

User

COMMENTS

S BHASKARA NARAYANA

3 years ago

Actually, the circular instructions from the top management, the training centers & both the unions of Clerical staff and Supervisor staff urges not to violate rules. But, the middle management supervisors, who are under stress for targets, from the same top management, used to dictate the operational level staff not to go between the lines.

M G WARRIER

3 years ago

Sucheta
Your proposal that honest men who can withstand pressures should be honored gives an impression that they are a minority. I would like to believe that majority of employees across government public and private sectors are honest and are not lured by ‘gifts’ or bribes or chances to go higher in career. Actually that majority is sustaining our country in one piece.

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