POSTED BY July 20, 2013 1:21 pm COMMENTS (2)ON
I got one investment suggestion from a known person with following information, I masked company names. I need advice from you if someone should really invest in ventures like these by any chance if so what should be those important points which needs to be taken care before investing in such schemes (can these be considered as Corporate Fixed deposits?) or else these need to be considered as one more Ponzi schemes which are seen in TV these days.
“XXX Ventures Limited is the Investments wing of XXX Group of Companies to carry out Investment and Real Estate activities. The company offers Investment avenues to the Life Members of XXX Trust with a view to pass on attractive returns when compared to the other Financial Institutions as per the following details.
1. 15% Redeemable Cumulative Preference Shares for 3 years term will be issued
2. They cannot be cancelled once issued in the name of the Investor. However in case of emergency, the member may withdraw Part/Full amount after the completion of a minimum period of 1 year at the discretion of the Board and in such cases the investor will get a dividend of 12% per annum only.
3. The dividend is payable annually and the same is Governed by the Company Law Rules.
4. The Preference Share Holders do not have Voting Rights
5. The minimum investment is Rs.1,00,000/- and above in multiples of Rs.10,000/-
6. The Cheque/DD should be drawn in favour of M/s.XXX Ventures Limited payable at XXXX Place
Note: All the Investors are requested to contribute a minimum of 1% of the Investment towards Educational Scholarship Donation/Conducting of Medical Camp