SEBI for more details on P-Notes issue

SEBI chairman UK Sinha said ‘Know Your Customer’ details will have to be submitted to the market regulator for any P-Note issued post-September quarter

Kolkata: Market regulator Securities and Exchange Board of India (SEBI) today said the new disclosure norms on participatory notes (P-Notes) would be sufficient to keep a tab on hot money flowing into stocks and these guidelines would be in force by October-end, reports PTI.

“Any P-Note issued by brokers, Know Your Customer (KYC) details has to be submitted to SEBI from October-end,” SEBI chairman UK Sinha said here today at an interactive session at the Bharat Chamber of Commerce here.

“The new disclosure norms for P-Notes to SEBI will be sufficient to keep a tab on foreign money flowing in,” Mr Sinha said when asked about reports of black money flowing back into the Indian market.

He later said SEBI had made mandatory for KYC details for all P-Notes issued post-September quarter.

“We do not want to discourage, but a set of rules will be framed for investor protection,” Mr Sinha said.

P-Notes are instruments like contract notes issued by FIIs to overseas investors who cannot directly invest in equity market as they are not registered.

Mr Sinha said SEBI would iron out operational issues like KYC norms for FIIs investment in mutual funds. “There are some operational issues, but they will be sorted out,” he said.

SEBI will also take a decision on overhauling the IPO process, saying, “We are taking a complete relook at the IPO process.”

Meanwhile, SEBI today asserted that the regulator would not spare any violation of regulation and take strict action.

“Unless we take strong action, the situation will not improve,” Mr Sinha said.

He said the client code modifications were to the tune of Rs56,000 crore per month. “When SEBI took action, it came down to Rs120 crore a month. Even now we are not happy.”

Mr Sinha said that one particular stock exchange’s under recovery of margin in the past was as high as Rs12,000 crore which, he feared, could have led to a payment crisis.


Speak Asia, where is the money?

All panellists of the Ponzi scheme are eagerly waiting for their money they had ‘invested’ in Speak Asia for earning huge returns. According to investigative reports, almost half of the money collected by Speak Asia was transferred to Singapore, while the rest may still be in India

The Economic Offences Wing (EOW) has speeded up the investigation in the Speak Asia scam to find out where the last source of the money—which the company collected on the pretext of giving income merely for filing e-surveys—was sent.

Sources from the investigating agency confirm that Speak Asia’s financial consultant has given a few leads in the matter before been sent to jail. An officer close to the investigation, preferring anonymity, told Moneylife, “Our major focus of the investigation is to find out the money trail. So far, it is learnt that some amount has been sent to Singapore, while the remaining is still in India.”

In the meantime, there are several sites and blogs which have come up over the Internet claiming to provide “latest and authentic” information about Speak Asia. However, all the sites and blogs are merely copying each other and trying very hard to keep their herd intact. One can see the mood of panellists from the comments posted below each article or blog post. The official website of Speak Asia remains down.  

Currently, the EOW has arrested Speak Asia’s financial consultant Sanjeev Dandona and Nayan Khandor, a Mumbai-based Web designer responsible for designing e-surveys. “Both of them have been sent to jail custody till 26th October,” said an official from EOW.

Mr Dandona was arrested by the EOW on 29th September, after it was learnt that he was the proxy owner of Kritanj Management & Allied Services and is linked with Speak Asia. Kritanj Management is the master distributor of Singapore-based Haren Ventures Pte Ltd (HVP) for e-zines in India. Mr Dandona is also alleged to be advising HVP and Tulsient Tech Pvt Ltd and also transferring funds collected by Speak Asia agents to Singapore.

Just the day after the arrest of Mr Dandona, it was revealed that the online surveys, which Speak Asia used to claim (and its agents used to believe), were actually created not in Singapore, but in Mumbai. This was revealed following the arrest of Nayan Khandor on 30th September, a Web designer and director of Dadar (central Mumbai)-based Brand Salon, who said that his firm was active in creating the online surveys for Speak Asia.

During the interrogation, Mr Dandona had revealed that Speak Asia was indeed running a Ponzi scheme and Mr Khandor confessed that he designed the surveys from Mumbai itself. (See:

In a separate development in the same matter, the Andhra Pradesh High Court, on 11th October, dismissed the bail petitions of Rajiv Mehrotra, Speak Asia’s director, along with four other employees.

The Andhra Pradesh CID has registered a case against Speak Asia for running a money-chain business without any registration. The bail petition was dismissed and the HC also vacated a stay on the arrest of the officials after they moved the HC against the FIR (First Information Report).




5 years ago

I am a invester in speak asia & i want to recovery of my money from speak asia. how it is possiable?
some body sugesst me. help me....
kya mere paise mil sakte hai?


5 years ago

American MLM Company MONAVIE in Kerala !!!

'Monavie' reportedly enrolled 1 lakh members from Kerala. They are also reportedly collecting upfront charges.

Many of the people who associated with earlier money chain companies are now secretly working for these companies.

The Congress led UDF Government’s new direct marketing guidelines are made only to protect these types of companies.


5 years ago




In Reply to A K BASU 5 years ago

a Kerala based ponzi company sold insurance products of National Insurance company, a government of India undertaking. I read in ML when asked about this they just denied it !!!


5 years ago

i appeal to the government of india to order saol to refund the fees (11000) to lakhs of victims (panelist) like me. thanks...

Sunder Sharma

5 years ago




In Reply to Sunder Sharma 5 years ago

your beloved coo tarak bajpai had fled away from the hospital.

Good work moneylife.

Kishore N

5 years ago

Tycoon Ponzi Fraud
Report (18.10.2011)

Maharashtra EOW in Kerala.

EOW approached Payyoli (Kerala State) Magistrate Court for the custody of the accused.


Kishore N

In Reply to Kishore N 5 years ago

Tycoon Chain -marketing fraud

One more director arrested

Director Mr. Kripakaran arrested by Kerala police


5 years ago


US man jailed for 25 years over $400 mn Ponzi plan

"Those who lie and steal from the investing public are on notice that they face severe penalties," US Attorney Loretta Lynch said in a statement, adding Cosmo's actions had "crushed the hopes and dreams of everyday citizens."

"We stand committed to ensuring that our markets operate fairly and honestly, and we will aggressively investigate and prosecute those who fraudulently enrich themselves at the expense of investors," she said.


5 years ago

October 16, 2011


Government agencies are on an overdrive to figure out the source of funding for Speak Asia. No clear cut answers emerging on that front so far.

Kishore N

5 years ago

Penta world, a Ponzi company, removes Medi-claim policy from its product list. However, the website still has a page devoted to National Insurance Company. The medi- claim product was removed only after the article published in Money life.

Penta world or any other MLM /Ponzi company has no right to use the name of National Insurance Company or any other Government of India undertaking for propagation of their illegal chain-marketing.

National Insurance Company cannot legitimize a Ponzi company which is declared illegal. National Insurance Company must immediately take steps or legal action to remove the page from their website.


Kishore N

In Reply to Kishore N 5 years ago


Tycoon Fraudsters have "Master Brain" !!!

Managing Director Mr. Palanivel Sadashivam is a post graduate in Computer Technology (M.Tech)

Mr. Kamalakannan is having a MCA degree.

The teachers of Kokkur Engineering College (Coimbatore) say Sadashivam was one of their brightest students. They were shocked to hear that their best student was involved in criminal case of such a magnitude.

They were evading Police arrests but the police team from Kerala headed by the DySP, Mr. P.P. Sadanandan located them with the help of cyber cell of the Police. Their software was designed by Mr. Kamalakannan and it was designed in such a way that it was impossible to identify or recognize the chiefs of the company.

They formed the following companies to cheat people:

1. Tycoon Empire International
2. Tycoon gold Expire International
3. Tycoon Infrastructure Development
4. Tycoon Portfolio Management
5. Tycoon Finance
6. Tycoon Retail Mall

Kishore N

In Reply to Kishore N 5 years ago


Tycoon Golden Empire international

Ref: Madhyamam & other news paper reports)

RBI Answers to RTI Regarding Speak Asia Online

5 years ago

With RTA Application Things Demanded and Question to Reserve Bank of India : -

Question 1. Please Provide the Copy of Cercullar which was Send to All Banks on 23 May 2011 Regarding Speak Asia Online .
RBI Answer 1 : We Can not Provide as it is Secreat Document which can not Be asked From RTA .

Question 2 : On Which Date RBI have Stoped Payments of Speak Asia Online Pte. Ltd.
RBI Answer 2 : We ( Reserve Bank Of India ) Never Closed Any Bank Accounts of Speak Asia in India .
( This was Shocking News to All the Speak Asians as From Speak Asia was Saying that Their accounts was Freezed By Reserver Bank of India Even in Speak Asia Controversy Blog it was written that :

M/s United Overseas Bank, Singapore, on 27th May, 2011 probably due to the cautionary circular
sent out by the RBI vide circular No. DBS.CO.PPD No.16237/11.01.005/2010-11 dated 23rd May, 2011.
SAOL has been approaching the RBI and various other appropriate agencies to seek permission for
establishing their permanent establishment and for restarting the operations and restarting the payments to their panelists (us).

Question 3 : The court case 1365/2011 at Hon. Mumbai High Court was disposed off asking RBI to give time to SpeakAsia to listen and understand their business model. Was the time granted for the meeting? If yes, than please provide a copy of the letter issued in this regard. If no, than why?
RBI Answer 3 : According to a News of 14th July 2011 Mumbai High Court DISPOSE Case on Speak Asia Online in this case a order was Passed by Court Bombay High Court SpeakAsia Petition 1365-2011

RBI cleared that on 19th September 2011 we have in Metting with Some Lawerys Appointed By Speak Asia Company in that they try to understand the Business Model of Speak Asia Online .

These Lawerys Said Please Don't Understand Speak Asia Online as MLM . On this RBI said Follow the Guidliness of FEMA .

According to Fema guidelines .. Speak Asia Company Survey System and Giving 11,000 and Take Rs.52,000 was Not allowed in India .
More Over Speak Asia Company Can Only Sell the Products to those have PAN account Number and All the Reward Points have only Valued When Company Starts From a New Way.


From a Long Time Speak Asia Management and AISPA is Saying Company want to pay to Pannelists but RBI have closed the Accounts it Means Speak Asia Management and AISPA are Lying to Speak Asians ?


R Nandy

In Reply to RBI Answers to RTI Regarding Speak Asia Online 5 years ago

Please get the matter clarified from RBI regarding question 2.There is a difference between closing a account and freezing a account.I think the question should have been whether the account was frozen by RBI or not.

If the account was not frozen it is a great injustice for the panelists of speakasia as they would have taken out all the funds after all the problems started.


In Reply to R Nandy 5 years ago

Here are the facts contrary to the claims of Speak Asia panellists and well established in the Bombay High Court regarding the freezing of bank accounts of Speak Asia distributors......
While, several panellists are feeling that it is the RBI that has stopped their payment, they fail to understand that the central bank does not have any jurisdiction in Singapore from where the account freezing process started. Banks in India have not frozen any account of Speak Asia, as the company does not have an account in the country under its own name.

Indian banks have frozen several accounts of distributors after the investigations by the income-tax and sales tax departments. Unfortunately, many agents are still under the impression that the RBI has frozen Speak Asia's bank accounts and that they would get their money as soon as it is released. It is estimated that the company owes over Rs2,000 crore as payment for surveys and police have found about Rs150 crore in distributors' bank accounts. How the company will be able to pay such a huge amount is a question that's worth not more than a few hundred rupees!

Kishore N

5 years ago


Tycoon fraud: Company directors under arrest

Chennai: Managing directors of Tycoon Empire International Ltd which ran a ponzi scheme and defrauded customers to the tune of Rs 400 crores were arrested Saturday.

The Special Investigation Team led by Crime Detatchment DySP P.P. Sadanandan nabbed Kkamala Kannan and Sadashivam both natives of Tamil Nadu from Chennai.

The SIT had earlier arrested nine persons in this regard.

The firm which started functioning from a two-room shop advertised itself as a multi-functional shopping mall and duped investors from Kerala.

Vikas Gupta

5 years ago

EOW should also investigate against INSTANT FOREX of Singapore as it has cheated Lacs of Indian Public for millions of Rupees.

Share prices may see more gains: Friday Closing Report

If the upmove continues, the Nifty may reach 5,210

Institutional buying in the second half of the session enabled the market to close in the positive, despite headline inflation for September hovering near the double-digit mark for the 10 month in succession. Yesterday, we had mentioned that the Nifty is ranged between 5,060 and 5,130. The index opened close to 5,060 and ended a little above 5,130. If the upmove continues, the Nifty may reach 5,210. The NSE (National Stock Exchange) saw a volume of 56.65 crore shares.

The market opened flat, tracking its Asian peers which were subdued in morning trade following reports that Standard & Poor’s had cut Spain’s long-term rating by one notch. Nervousness ahead of the release of India’s inflation figures for September also kept investors on the sidelines. The Nifty opened 21 points lower at 5,057 and the Sensex started the day at 16,837, down 47 points from its previous close. The opening figure was the intraday low for the Nifty, while the Sensex dipped to the day’s low in initial trade with the index at 16,828.

A minor recovery in healthcare, IT, consumer durables and oil & gas sector stocks helped the market trade in the positive zone. Unable to hold on to the initial gains, the indices slipped into the negative just before 10am. The indices sprang back into the green a short while later on institutional buying in select stocks.

Choppy trade continued with the market almost touching its previous close in the post-noon session on fears that the Reserve Bank of India may hike interest rates yet again in its quarterly policy review later this month as inflation continues to hover near the double-digit mark for 10 months in a row.

The market hit its intraday high in the last half hour with the Nifty rising to 5,141 and the Sensex scaling 17,112. The closing was a tad below those levels as the Nifty added 54 points to 5,132 and the Sensex rose to 17,083, a gain of 199 points.

The advance-decline ratio on the NSE was almost equal at 902:820.

Among the broader indices, the BSE Mid-cap index gained 0.55% and the BSE Small-cap index rose 0.31%.

BSE IT, BSE TECk (up 2.61% each), BSE Oil & Gas (up 1.53%), BSE Fast Moving Consumer Goods (up 1.09%) and BSE Auto (up 0.99%) were the top sectoral gainers. The losers were BSE Realty (down 1.36%), BSE Metal (down 0.56%), BSE Capital Goods (down 0.47%) and BSE PSU (down 0.37%).

The Sensex toppers were Jindal Steel (up 5.01%), TCS (up 4.01%), Wipro (up 3.98%), Bharti Airtel (up 3.76%) and Bajaj Auto (up 2.85%). Coal India (down 2.91%), Tata Steel (down 2.84%), DLF (down 2.68%), Maruti Suzuki (down2.65%) and Larsen & Toubro (down 0.74%) settled at the bottom of the index.

The key performers on the Nifty were Jindal Steel (up 5.36%), Wipro (up 3.98%), TCS (up 3.87%), Bharti Airtel (up 3.81%) and IDFC (up 3.57%). The major losers on the index were Sesa Goa (down 4.41%), Tata Steel (down 3.57%), DLF (down 3.02%), Coal India (down 2.94%) and Maruti Suzuki (down 2.72%).

Markets in Asia closed mostly lower as Chinese consumer inflation for September remained above the 6% mark at 6.1%. S&P’s downgrade of Spain’s long-term credit rating by one notch also weighed on investors’ sentiments.

The Shanghai Composite fell 0.30%; the Hang Seng declined 1.36%; the Jakarta Composite lost 0.29%; the KLSE Composite slipped 0.17%; the Nikkei 225 fell 0.85% and the Taiwan Weighted closed 0.95% lower. On the other hand, the Straits Times rose 0.37% and the Seoul Composite gained 0.67%.

Back home, foreign institutional investors were net buyers of stocks worth Rs670.08 crore on Thursday while domestic institutional investors were net sellers of shares worth Rs257.36 crore.

Tensions ran high at Maruti Suzuki India’s Manesar plant on Friday with about 1,500 police personnel entering the factory and asking the striking workers to vacate the premises as per the Punjab and Haryana High Court order. The workers, however, said they will not leave the factory unless forcibly evicted. The stock declined 2.72% to settle at Rs1029.50 on the NSE.

Nectar Lifesciences has received European approval for its Cephalosporin APIs manufacturing facility at Derabassi in Punjab. The certificate is accepted by all European Union health authorities besides several other countries, the company said. The stock soared 11.89% to close at Rs24 on the NSE.

The Securities and Exchange Board of India (SEBI) has imposed a penalty of Rs5 lakh on retail major Pantaloon for failing to address investor grievances within the stipulated timeframe. SEBI had earlier identified the Kishore Biyani-promoted firm as one of the companies against whom a large number of investor grievances were pending for more than six months as on 30th June last year. Despite the development, the stock gained 1.16% to close at Rs196.80 on the NSE.


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