I am Dr M R Aggarwal My email ID is < edirector@gmail.com > I want to know whether this query is real if so I am willing to do this business;
TRADING OF F.D.RS … CR & ABOVE (OLD OR FRESH), WITH LIEN AND HOLD PROCEDURE. (….. DAYS ONLY)
1) F.D.R front & back color copies
2) Letter of Intent.(in color only)
3) Authorization to verify & authenticate letter (in color only)
4) Pass port & Pan card color copies.
The F.D.R will be verified and the trader will issue the Offer Letter.
The offer will be ….% for …. days hold, ….% for …. days hold.
For Indus Ind Bank F.D.R the returns will be ….% & ….% for … & … days holdings respectively.
If the instrument is from the Indus Ind Bank the transaction will be finished within 3 to 4 working days, otherwise it will be 4 to 6 days for any other banks. (Nationalized or MNC)
On receiving the acceptance from the client, the trader will send the M.O.U. The F.D.R holder should sign the M.O.U & should mail the scan copy of the same. The traders will sign the scan copy & will mail back the same to client. He can notarize the scanned M.O.U document & can keep with him.
Then client should raise a simple lien in favor of trading company and should hand over the original copy to the trader, on which trader will immediately give the original reversible lien copy to the client. The lien will be submitted to the R.B.I for the approval.
The trading company will provide N.O.C (in their letterhead) to the client to reverse the lien. Note the very important part of the whole transaction is that
SIMPLE LIEN THAT IS REVERSIBLE WITH N.O.C IS THE SECURITY DOCUMENT TO THE CLIENT TILL THE TANSACTION COMPLETES SUCCESSFULLY.
Within maximum 4 TO 5 working days the trader will get the approval from the R.B.I. Once he gets the approval will make the payment to client’s desired account through RTGS.
After the payment the F.D.R will be blocked for…..0r ….. days as per the contract. On ….st or ….st day the block will be released and the client can take the principle value too.
Mediator’s Role.
a) Fee protection agreement will not be signed. One of the mediators will take the responsibility of the payment & will distribute the commission to others.
b) The commission will be ….% of the face value.
c) The Buyer will transfer the commission money to the group head only after making the payment to the client.
d) Buyer is not responsible for any payment from the client to the mediators in cheque. He is not responsible for any understanding between the client & the mediators as far as the payment are concerned.
PLEASE FIND FOLLOWING ATTACHED DOCUMENTS.
1) Letter of intent.
2) Authorization to verify & authenticate.
3) The agreement for F.D lien & trade.
4) Lien format.
5) Reverse lien format.
6) Acceptance & invitation format.
7) Clarification of some doubts.
8) The difference in the procedures of outright & trading.
STEP BY STEP PROCEDURE OF THE TRADE PROGRAM
1) We are trading the F.D.R’s of both Nationalized & MNC banks above …..CR. (old & fresh).
2) All procedures are 100% legal, as per the terms & conditions of R.B.I.
3) We are not concerned about date of issue and maturity of the instrument. For Both fresh & old F.D.R's the trade profit is same.
4) MT799 & MT760 are absolutely not required.
Please find attached documents of the procedure in detail.
5) We require the L.O.I, ATV, acceptance letters in our standard formats only.
6) The offer will be …. for …. days holding & …% for … days hold. The offer will remain unchanged for fresh F.D.R.
7) If the instrument is from Indus Ind bank the offer is …% for … days & ….% for … days.
8) The transaction will be finished within 4 to 5 days after exchanging the original lien & reverse lien copies between the trader & the client. (Please study the attachment 'NEW TRADE-2' doc).We need:
1) F.D.R font & back color copies.
2) Pass port and pan card color copies.
3) L.O.I & ATV in the name of Mr…………….., Trader
The format is already attached with this mail, please refer.
After the verification, Mr……. will speak to the client in a conference call, just to confirm the deal.
9) Then he will send the Offer letter.
10) The client should give the Acceptance in our format. (Please refer the ‘acceptance & invitation’ doc)
11) Then Signing of M.O.U (please study-Agreement F.D lien & trade document 11) will happen ON-LINE. (The M.O.U can be signed personally, if both parties are convenient to meet) The client has to take 200 Rs stamp paper and to draft the agreement; he can mail the scan copy of the signed agreement. Then the traders will sign the scanned copy & mail back again. Then client has to notarize the scanned M.O.U signed by both 1st & 2nd parties. The M.O.U will be valid for 15 days.
12)Then he has to go to the bank, to take a lien (Please study the lien format11doc) in favor of our trade company,( Fresno Capital, Mumbai.) he has to mail the black & white copy of the lien letter( you can cross the black& white copy & can mention that this is only for verification) just for the confirmation.
13) Then trader prepare the original reverse lien (Please refer the Reverse lien format doc) letter in favor of client.
14) Both trader & the F.D.R holder will meet personally preferably in Mumbai to exchange the lien & reverse lien documents.
15) Then trader will submit the lien to R.B.I for the approval. Once he gets the approval (Within 3 to 4 days) the payment will be done through RTGS to the desired account of the F.D.R owner.
16) Then the client has to sign some documents in R.B.I to complete the process of lien. After this documentation only the trader can utilize liened fund to hold & trade. The lined fund will be blocked for …/… days. While going for the block trader will take back the reverse lien from the client, the liened funds will be blocked for …/… days.
On ….st or ….st day block will be released.
In the whole process we won't require MT799 or MT760.
We will not keep the F.D.R with us also.
LETTER OF INTENT.
Date:
Place:
To,
Mr. ………….
Ref:
Sub: Trading with lien & hold procedure.
Dear Sir,
I __________authorized signatory, here by confirm with full legal responsibility, that I wish to enter into structured private financial opportunity transaction of my F.D.R of ___________ Bank________branch, (F.D.R No___________), the sum of __________Cr in INR that are GOOD, CLEAN, CLEARED funds of non criminal origin and are free & clear of liens or encumbrance of any nature. The said funds/assets are available for holding for …/…. days.
With Regards.
Signature
Seal.
AUTHORIZATION TO VERIFY AND AUTHENCIATE.
Date:
Place:
To,
Mr.
Ref:
Sub: The trading of my F.D.R with lien and hold Procedure.
Dear Sir,
I _____________ authorized signatories, and on behalf of ourselves, do here by authorize the compliance department and or compliance Bank, to check with our Bank (Name & address of the Bank) on a bank to bank basis the availability & authenticity of the funds which we wish enter into a structured private financial opportunity transaction with your trade company.
Kindly find below the full coordinates of our bank and funds as fixed deposit receipt with them.
Type of asset: Fixed Deposit Receipt.
Name of the Bank:
Bank address:
Telephone number:
Fax number:
Account number:
Account name:
Bank officer:
Bank officer title:
This authorization shall remain in full force and effect after issuance for a period of 30 banking days.
Signature of the client.
Seal
To be typed in Rs.200 Judicial Stamp paper
AGREEMENT FOR FD LIEN AND TRADE
THIS AGREEMENT executed at _________this _____________ 2015 by and between:
Mr.__________, an individual holder/a company incorporated under the Companies Act, 1956 and having its/his/her residential address/registered office at ______________ Hereinafter referred to as the FIRST PARTY and also as INVESTER/SELLER/ASSIGNOR (which expression shall unless it be repugnant to the context or meaning thereof, be deemed to mean and include its successors-in-interest and permitted assigns) acting thru Self/Managing Director / Director of the FIRST PART;
AND
……………….represented by Mr…... aged around 30 years presently residing at. ……………………………………………………………………………………………………... Herein after referred to as the SECOND PARTY and also as BUYER/ASSIGNEE which expression shall unless it is repugnant to the context or meaning thereof, mean and include his heirs, executors, administrators and assignees of the SECOND PART
WHEREAS the party of the SECOND PART is desirous of acquiring high quality financial instruments for the purpose of recourse.
Investor and the Buyer are hereinafter, wherever the context so requires, referred to collectively as ‘Parties’ and individually as ‘Party’
AND WHEREAS the party of The First Part has tax paid sufficient surplus funds has an FDR drawn on ____ Bank FD no: ________. Hereinafter also referred to as ‘the Instrument’. The party of the First part is agreeable to sell the said F.D.R. To the party of the Second part after due documents execution and subsequent successful placement.
AND WHEREAS the party of the Second part is willing to take the assignment of the said FDR for his desired business purposes.
NOW THEREFORE, in consideration of the foregoing and the mutual covenants and promises contained herein the Parties, intending to be bound legally, agree as follows:
1. After the initial verification, the SECOND PARTY has issued a provisional letter of intent and offer to the FIRST PARTY. The SECOND PARTY also reserves the right to further carry out physical checks at any Bank with regard to the verification of the aforesaid instrument for which you as FIRST PARTY agree to issue to the SECOND PARTY an authorization letter specifically allowing the SECOND PARTY to carry out a physical bank to bank inspection.
2. The FIRST PARTY undertakes lien to the SECOND PARTY for a … day program. The FIRST PARTY agrees and undertakes to provide the said instrument to the SECOND PARTY in this manner. Since this is a reversible lien, the SECOND PARTY agrees to provide an NOC to the FIRST PARTY stating no objection for reversing the lien as of current date itself.
3. It is agreed that the beneficiary for this full program income would be the SECOND PARTY. The SECOND PARTY shall then pay a minimum of …. % of the program proceeds to the FIRST PARTY to buy the said FDR from the FIRST PARTY.
4. After the above agreements are signed, and lien letter is issued by the bank, we will submit all the above documents to RBI. All further transactional arrangements will be done from that point after we have got the permission to transfer profit funds to the clients account. If the profit funds are transferred, the FD will stay in lien for … days as the case may be. Once the term is over, the FDR lien will be reversed using the NOC provided by SECOND PARTY to FIRST PARTY in (2) above. If the lien is executed, the NOC shall deem and constituted to be void.
5. Upon successful completion of the above desired transaction, a No claim letter (NOC) will be handed over to each other by both the parties, if required.
6. This agreement would be valid for a period of 15 contiguous days from the date of execution, for any and all transactions between the parties, and this agreement shall expire on the midnight of the 15th day. The running days shall include all days. Both parties agree that this agreement ceases to be meaningful after expiry and consequently both parties shall cease and desist (under U.K law) unless a new agreement is entered into. After expiry both parties agree not to contest any clause under any judicial, quasi judicial or any law enforcement authority and agree to indemnify each other against the same.
7. In case of any dispute between the parties the same shall first be settled amicably failing which the same shall be subject to the jurisdiction of the courts of UK, since the owning company is incorporated in UK and the profits are being imported from the UK itself. Hence a prime component of the second party is the UK based trade company.
8. No failure or delay on the part of any of the Parties to this Agreement relating to the exercise of any right, power, privilege or remedy provided under this Agreement shall operate as a waiver of such right power privilege or remedy or as a waiver of any preceding or succeeding breach by the other party to this Agreement. Process delay cannot be construed as failure.
9. None of the provisions of this Agreement shall be deemed to constitute a partnership between the Parties hereto and neither Party shall have any authority to bind or shall be deemed to be the agent of the other in any way.
10. This Agreement constitutes the entire agreement between the Parties with respect to the subject matter hereof to the exclusion of and shall supersede all prior agreements, understandings and assurances, either written or oral relating to the subject matter of this Agreement.
11. No modification or amendment to this Agreement and no waiver of any of the terms or conditions hereof shall be valid or binding unless made in writing and duly executed by all the Parties.
12. Any notice or other communication required to be given under this Agreement shall be sent or delivered to the receiving Party at the address set forth herein, or at such other address as the Parties may from time to time designate in writing.
IN WITNESS WHEREOF both the parties have put their respective hands to these presents on the day and year first hereinabove written.
SIGNED, SEALED AND DELIVERED by]
The within named:
FIRST PART (__________) Signature______________
SECOND PART
Signature_________
Place: __________
Date: _________
ACCEPTANCE AND INVITATION LETTER FOR TRADE
(In letterhead)
Date:
Place:
To,
Mr………..
Dear Sir,
Ref:
Subject: Acceptance for lien & hold Program of your trade company.
I Mr. _____________ the owner of the ________ F.D.R of Bank (F.D.R No_________) here by accepting the procedure of lien, hold and trade. I am also accepting your offer of ________% returns for … /… days holding program.
I am ready to enter into the M.O.U on line & will send the scan copy of the signed & notarized documents to you.
I will lien my F.D.R to your trading company and keep other required documents ready, & will hand over the original lien copy & also accept the original reverse lien from you, on your visit to our place.
So, please reply to this acceptance and confirm your date of official visit to _______ for the process of trade program.
Signature & seal.
Bank Letterhead
Date:
From,
The Manager
Bank NAME, BRANCH NAME
To,
Whomsoever It May Concern
Sub: Lien issuance to M/s.
We refer to the fixed deposit (FDR) with the following details:
Name of the Holder:
FDR No:
Issue Date:
Amount:
Maturity Date:
The above FDR has been liened to the following party stated below with immediate effect and shall stand so until reversal (if applicable)
Lien Holder: M/s. ……………………….. We also issued a modified FD Advice with this lien holder name being reflected on this FD advice.
We further confirm that these funds are not locked (and no lock-in period exists) or under any form of a lien or any such holding by the bank at time of issuance of this letter. Encashment whether premature or otherwise would not require clearance from any authority or person. The FDR includes interest accrued if any. The amount under the said FDR would be paid to the lien holder on demand, without demur, on or before the maturity of the said FDR without any reference to the above named FDR holder.
Yours faithfully,
Authorized Signatory
(Name of Bank, Branch Name, Officers Signature and Bank Stamp)
REVERSE LIEN LETTER
(In Company letter head)
Date:
Place:
TO WHOM SO EVER IT MAY CONCERN
Sub: Reverse lien letter (NOC) for the _______ Bank______Branch F.D.R in the name of Mr. __________, F, D.R No ___________ Amount________.
Dear Sir,
We M/S ……………………………., has no objection (NOC) to reverse the lien which has taken in favor of our company as per the terms and conditions.
Bank & Branch:
F.D.R No :
Amount :
Company seal & signatures
The last paragraph of the lien format: The amount under the said FDR would be paid to the lien holder on demand, without demur, on or before the maturity of the said FDR without any reference to the above named FDR holder.
This is applicable only after making the assured payment (…..% or ….% as per the contract) to the F.D.R holder. After the payment only we are going to block (hold) the liened funds. During this blocking period (…. or …. days as per the contract) the trader wants to have the liened funds to trade. That’s why it is mentioned clearly to avoid objection or complication by the F.D.R holder if any. But this right will be automatically withdrawn from the trader once the holding period completes.
Once the F.D.R holder liens his instrument to the trade company, he will lose his rights on the F.D.R. So is it safe to give lien?
Answer: Absolutely safe. The big miss conception in this part is that, once you give the lien, their money is gone!!
No it is 100% safe & secure due to the following reasons.
We are giving the Reverse lien immediately as a security & N.O.C to the client. The Bank gives the lien in its letter head in favor of the trade company, with clause that it is reversible if applicable.
Once the client takes the lien, trader can’t utilize the lined fund to trade or take the credit line on the same unless, he completes the procedure of lien in the R.B.I with the presence of the client.
So, after exchanging the lien & reverse lien, both trader & the F.D.R holder will go to the R.B.I in Mumbai. The trader will take the approval (Within 3 to 4 days as mentioned) & will make the payment to the client.
The client should sign certain documents regarding the lien in the R.B.I, and then only the process of lien will be completed 100%.
After this only the trader can lien the funds & can block the same to trade for ….. days or …..days as mentioned in the contract.
OUTRIGHT SALE & TRADING
Dear Sir,
We are doing the program of both outright purchase and trading of the F.D.R (Fresh and old, Both Nationalized & MNC Banks).
As we all very well aware of the fact that the Fixed Deposit Receipt cannot be transferred to any individual or to company straight away! Still the terms outright sale & purchase are used in the market.
The F.D.R is purchased through the method of LIEN & ASSIGNMENT, where the instrument owner should lien his F.D.R to the Buyer’s Company. Then the Buyer will make the payment of assured returns as per the terms & conditions mentioned in the contract. (Both client & Buyer will enter into a M.O.U in 200 rupees stamp paper).
After the payment only the assignment will happen. Once after the assignment the client will not have any hold on his instrument.
In the trade program, after the LIEN, Buyer will make the assured payment, and then will go for holding the lined fund for … or …days as mentioned in the contract. On …st or …st day (ie at the end of the blocking period) the LIEN will be cancelled and the F.D.R. with 100% principle value will be returned to the client.
Please note the difference between the outright & trade procedure is that in trade program there is no ASSIGNMENT.
The advantage of the trade program is that once after the hold period the client can raise the fresh F.D.R on the profit amount & can repeat the process.
If he is gone for the LIEN, HOLD & TRADE of …Cr F.D.R for … days will be getting ….Cr (inclusive of the face value). Now again he can take a fresh F.D.R of……Cr & can enter into the trade program again.
The outright saleïƒ Lienïƒ Paymentïƒ Assignment.
The trade programïƒ Lienïƒ Paymentïƒ blocking of the lined fundïƒ releasing the Fund. NO ASSIGNMENT. So, not to believe the mediator’s in the market, where they do not understand the outright purchase of some once FD’s impossible, even the trader takes as a outright, he will again use it for trading, so it is better to go for trading
Written June 2015 on a Friday
(2015-06-26)
