Mumbai-based Emex Fundamental Tradez Marketing International Pvt Ltd (Emex FTM) is the new entrant in the world of money circulation schemes that promises exaggerated assured returns on increasing new recruits in binary mode. While Emex FTM's website shies away from providing any information about its activities, there are a number of videos and messages on social media that highlight how people behind this company are running a collective investment scheme (CIS) without obtaining any permission from the regulators, which can be seen from the fact that the Emex FTM website does not display any registration number or certificate obtained from Securities and Exchange Board of India (SEBI). Under the pretext of CIS, Emex FTM is actually running a money circulation scheme that will collapse the day when there are no investors joining as new members.
Emex FTM offers five different plans based on the amount invested ranging from Rs5,000 to Rs1 lakh and promises assured weekly returns on its Facebook page. For an investment of Rs5,000, it offers weekly returns of Rs375 over 40 weeks. This amounts to Rs15,000 or a return of three times over 9-10 months. In short, to those investors who remain invested for 40 weeks, Emex FTM is offering three times returns on the invested amount.
Returns of such a magnitude are not possible in regular or legally valid investments. For example, provident fund (PF) gives an interest of around 8.50%, which in other words mean an amount invested today would double only after more than 11 years.
In addition, it offers 10% additional income each for binary (recruiting new members as your sub-associates) and direct referral. Emex FTM also has a mobile app FTM International, which it claims provides updated information to members.
Several videos on Emex FTM scheme are available on YouTube. While a few have been deleted, there still are some that promote the scheme. Here is one such video posted by someone with a username The Rich Story...
Another user Bedra Media has posted several videos on Emex FTM schemes. This video below explains how the direct referral, binary system works and what is the ceiling in this money circulation scheme.
One member of the scheme, Sheikh Askan even made a video explaining how the mobile app of Emex FTM works, wherein he shows hyped claims of investment returns. In one screen, he shows invested amount as Rs1.60 lakh, return on investment (RoI) received at Rs23,630 and the credited amount of Rs9,73,130! There is no logical explanation for this type of extravagant earning given by Sheikh Askan.
Interestingly, on its portal, Emex FTM says it has a few businesses such as the e-commerce venture Emex India that sells gold, diamonds, homecare products, cosmetics and consumer electronics items. Another business listed on its website is real estate. It says, “Emex Builders and Developers is one of the fastest growing chains in the infrastructure building industry in the country."
FTM International, it says, deals in providing services to retailers. However, what service it provides is not clear. All it says is, "We help you take advantage of technology to get the best out of your retail businesses. Further, FTM practically proves that the best way to climb the echelons of profit is to buy and sell the shares of a brand rather than engaging in retail business of the same brand. This too we cover for you."
Lastly, Emex FTM claims to be operating a fleet of "India's first online taxi service". "...the speciality is that it runs on self-financed taxis as well. It also includes a wide variety of vehicles like cars, autos, bikes, etc. Giving customers a heads up in growth, Flykab offers cashless rides to them as well," it says.
However, for such a 'classy businesses' Emex FTM shies away from disclosing information or even names of its promoters and directors on its website, except for Ratheesh Raveendran, who is managing director.
In some of the messages shared by people who had 'invested' money in this scheme, Emex FTM is said to be earning money from stock market investment through Motilal Oswal Financial Services Ltd (MOFSL). However, the brokerage denied having any relationship with Emex FTM. MOFSL has initiated an enquiry in this matter, an officer from MOFSL told Moneylife.
Similarly, some agents of Emex FTM were found linking the company with Geojit Financial Services Ltd. But Emex FTM had to issue a clarification on its website as well as in a newspaper stating that it is not into any business relationship with Geojit.
Moneylife sent emails to senior officials of SEBI and Emex FTM. However, we have not received any reply from them till writing this story. We will update our readers as and when a response is received from them.