SMALL INVESTORS FORUM

I am against all MLM schemes including Amway India: V C Sajjanar, Police   Officer Mr V C Sajjanar is the first police officer who filed criminal cases against the fraudulent companies like Japan Life Bed, Amway India, GoldQuest, ebiz.com, etc., which are indulging in money circulation schemes in the guise of selling products. A recent meet with the popular Indian Police Service officer, Mr V C Sajjanar revealed that the police officer has fire in him against the daylight robbery of these crooks and he goes to any extent to check this menace in the larger interest of people. Presently, Mr Sajjanar is the Deputy Inspector General of Police (Intelligence). Excerpts: Q : Sir, you are the first police officer all over India and in fact all over world, to file a criminal case against Amway India. You are also instrumental in breaking the Japan Life Bed racket even before Amway India. What made you to take that stand? Sajjanar : I have been against the multilevel marketing ...

Checklist to Evaluate Multi-Level Marketing (MLM) Programs that may be Pyramid Schemes Use the questions below to evaluate a multi-level Marketing program that you are considering to see if it meets a government definition of a pyramid scheme. 1. Is there a joining fee? Pyramid selling schemes often have start-up fees which are not for purchasing commercially viable goods or services since most earnings come from introducing others to the scheme. 2.    Does the promotional literature indicate unrealistic earnings (eg "make Rs.100,000 a month legally")? Promoters who make unrealistic claims risk breaking the law. If you answer yes to (1) and (2) then regardless of whether the scheme is pyramid selling or not, you should seek financial advice before entering. 3.    Do participants earn commissions primarily from selling products or services, or are financial rewards largely dependent on recruiting others into the scheme? Pyramid selling schemes are bas...

WHY SHOULD ONE AVOID AN MLM SCHEME? The idea behind multi-level marketing (MLM) is simple. Imagine you have a product to sell. A common MLM product is some sort of panacea, such as a vitamin or mineral supplement. You could do what most businesses do: either sell it directly to consumers or find others who will buy your product from you and sell it to other people. MLM schemes require that you recruit people not only to buy and sell your product, but who will also recruit people who will not only buy and sell your product but also recruit people.... ad infinitum . Only there never is an infinitum to move towards. This may seem unusual to traditional business people. Why, you might wonder would you recruit people to compete with you? For, isn't that what you are doing when you recruit people to sell the same products you are selling? MLM magic will convince you that it is reasonable to recruit competitors because they won't really be competitors since you will get a cut ...

Safeguard yourself from financial frauds You might be a victim of a financial fraud and chances are you do not even know about it. This can happen and there is nothing you can possibly do to control this. It does not matter who you are or whom you know or where you are from or what position you are at. Consider this. Out of the blue someone from some financial company calls you for bounced cheque and EMI recovery. You are shocked as you have not even purchased a thing in the last six months. The caller then verifies your name, address, date of birth, mobile number, office number etc. None of this that you can deny but suddenly there is a large loan standing in your name. You have not visited the store in question, not made any payment, perhaps you were not even in town but still somehow someone purchased goods in your name, on your credentials and has now absconded with the goods leaving you in a lurch. You cannot believe this and you call for a fresh CIBIL report and you can clearly ...

Safeguard Yourself Treat unsolicited offers with suspicion If you receive a request or offer via email, pop-up message or phone that requires you to provide or confirm personal information, call the business using a phone number other than the one given to confirm the legitimacy of the request or offer. If the inquiry seemingly originates from a known and trusted entity, use the number on the back of your card or on your monthly statement. Make payments electronically when possible Electronic payments reduce the amount of paper floating around with personal information on it, and many financial institutions offer online bill paying services. Shop carefully online If you initiate an online transaction and must provide personal data, look for indicators that the site is secure, like "https" in the Web address or the closed padlock icon in the bottom frame of your browser. Avoid sites without these indicators. It is also wise to conduct financial transactions only on wired I...

SMALL INVESTOR’S FORUM ( Initiave of Pune Investor Grievances Forum (Regd)) PETITION/LETTER TO FINANCE MINISTER/SEBI Dear Sir, Sub: Impact of SEBI’s new Mutual Fund Regulations on the Small Investor. On the 16 th of August, SEBI has come out with a Press Release announcing changes in Mutual Fund Regulations. Currently, it is a press release which means we only get the outline of the changes proposed. Soon, this will be followed by a circular (more than one, likely) which will contain more details. The circular(s) will be analysed by the mutual fund compliance officers (and probably, AMFI) and they will come out with guidelines of implementations which is when we will really know the true import of the changes. The SEBI’s Note starts with “Steps to Re-energise Mutual Fund Industry”. It states that SEBI took note of the lack of penetration of Mutual Fund Products, inadequate distribution network, need for greater alignment of the interest of various stake holders, re...

Too good to be true... Become a Millionaire!" "Make Money 24 Hours a Day" "Instant Success!" The headlines are certainly enticing, especially in today's troubled economic climate. The idea of making money right away without any special skills or major investment appeals to the immediate need, while the promise of residual income appeals to the desire to not end up in your current financial position ever again. And some highly reputable companies have been built on this marketing & distribution structure... Avon, Mary Kay, Excel Communications, and more. But then there's the down side... "Do I really want to pitch this to all my friends?" "Can I actually make money at it?" "How do I know it's not a scam?" If you're considering an MLM, CDM, or network marketing opportunity, ask these six questions to determine whether a network, multi-level, or consumer direct marketing is worth your while (and your money)....

  Is MLM pyramid selling? Much emphasis is made of the fact, by those who promote it, that MLM is legal and therefore not a pyramid scheme. Opponents of MLM object that even though it is legal, it is still based on the pyramid system, and it has all the inherent dangers and drawbacks of a pure pyramid scheme. Pyrami ... d scheme: An illegal multi-level program wherein people pay an entrance fee for the sole opportunity to recruit others to do the same. Members to the scheme pay a joining fee which is passed on to those above them in the scheme. Their purpose is to recruit new members below them in the scheme in order to qualify for a share of their joining fee. Characteristics of a pyramid scheme. Position in the scheme is important. The scheme is based on a pyramid structure, hence the name, with a few people at the top and an increasing number of members in each layer below. Money paid in by new investors flows from the bottom to the top. It is therefore important to be at, ...

Beware of Pyramid Schemes.. A pyramid scheme is a fraudulent investing plan that has unfortunately cost many people worldwide their hard-earned savings. The concept behind the pyramid scheme is simple and should be easy to identify; however, it is often presented to potential investors in a disguised or slightly altered form. For this reason, it is important to not only understand how pyramid schemes work, but also to be familiar with the many different shapes and sizes they can take. The Scheme As its name indicates, the pyramid scheme is structured like a pyramid. It starts with one person - the initial recruiter - who is on top, at the apex of the pyramid. This person recruits a second person, who is required to "invest" Rs.100 which is paid to the initial recruiter. In order to make his or her money back, the new recruit must recruit more people under him or her, each of whom will also have to invest Rs.100. If the recruit gets 10 more people to invest, this person...