The operations of shady multi-level marketing (MLM) companies — which operate what are popularly known as pyramid or ponzi schemes — have come under the regulatory scanner with shady MLM companies mushrooming across the country and duping investors. Many firms posing as MLM agencies for consumer goods and services have been actually mobilising large amounts of deposits from the public with promises of ridiculous returns of 120 per cent and repayment of prinicipal within a year.
In a circular, the Reserve Bank of India has alerted banks that in cases where accounts have already been opened in the names of the marketing agencies, retail traders and investment firms, the banks should undertake quick reviews. “Wherever large number of cheque books has been issued to such firms, the relative decision may be reviewed,” it said.
With many MLM companies recently using the banking technology to dupe investors, the RBI said, “banks should be careful in opening accounts of the marketing/trading agencies etc. Especially, strict compliance with KYC (know your customer) and AML (anti-money laundering) guidelines issued by the RBI should be ensured in the matter.”
The banking regulator also named seven MLM companies (Fine India Sales Pvt Ltd, Lakshya Levels Marketing, Eve Industries, Trident Advertising & Trade Links Pvt. Ltd, Super Life Link Distributors, Lue Brain Education Society and Manya Mantra Marketing). “These firms and their agents had reportedly promised very high returns on deposits and lured common people to part with funds in the name of certain investment/deposit schemes,” the RBI said.
The Economic Times on Speak Asia Online
ReplyDeleteThe news item below clearly shows that SAOL's bank accounts are not freezed, rather they are closed.
read pg 16, economic times today,
dear polash, pl post it here...
Below are updates which have been received by Officials.
ReplyDelete• ESCROW Account Set-Up - Keeping the recent events in mind, company is working on 2 things in tandem with each other.
1) Setting Up an ESCROW Account so that the pending payments can be done at the earliest. Its estimated that once the ESCROW account is done the payment can be seen in a max of 2 weeks time from then.
2) Setting up a new bank account apart form this ESCROW account in order to be on the safer side, now and forever.
• Dispatch Of Mobiles and LCDs - The dispatch of Android Phones and LCDs will start by this coming Friday. A communication will be sent to all the people who had qualified for this promo offer.
• Shopping E Wallet - The money is Shopping-E-Wallet can be used to generate subscription codes starting this Friday. While generating Subscription code, apart from survey wallet and panel wallet we would be seeing shopping-e-wallet too as an option starting Friday.
• Current Cash Request - As said by the recent pop-up, all panelists will be having an option to cancel the current cash request sent. By doing so, you will be getting the Reward Points back in your account which in turn can be used to generate subscription codes.
A communication from SpeakAsia on the above can be seen by Wednesday on the pop-ups. Apart from this, SpeakAsia has been involved with 2 major activities which we would be hearing very soon.