’’LIFE MEANS MORE’’ the one liner floated by Hometrade.com.
Now, lets first of all try to know the unknown facts and then we would get back to real business. Sanjay Agrawal, the CEO of Hometrade.com at the start of his career was working with Citi Bank and later worked with S.S.K.I., one of the oldest share-broking firm of the Mumbai Stock Exchange, launched the dot com in May, ’01 by incurring an expenditure of almost Rs. 20 crores for the promotion of Hometrade.com. It is being said that Sachin, Shahrukh and Hrithik each were paid Rs. 05 crores.
The business in which Hometrade.com was involved is that of online share-broking.
SOURCES OF FUND:-
1. A Kolkata based shipping company alloted Rs. 92 crores out of the Provident Fund Account (as permitted by the Provident Fund Commissioner to maintain a separate P.F. A/c.) in lieu of higher returns. Mind-well, without the consent of Union Leaders, the management of the company on its own can’t allot the funds because in accordance to the Employees Provident Fund Act its not permitted.
2. The funds of small, medium and big sized co-operative banks of Maharashtra and Gujarat such as Nagpur District Central Co-operative Bank, Rajkot District Sahakari Bank, etc. again in lieu of higher returns.
3. Rs. 250 crores by a politician which he had lended to Sanjay Agrawal for investing in debt market but was lended by Sanjay to a bullish share-broker of Mumbai Stock Exchange for investing in equity market.
APPLICATIONS OF FUND:-
Due to depression in equity market most of the funds are being invested in debt market which is regulated by the Reserve Bank of India (RBI) and not by the Securities and Exchange Board of India. How the debt market operates? The style of operation is similar to greater extent in context to equity market. 1/2 a percent difference in the price of bonds results into business of crores of rupees at the end of day. The management of the dot com used most of the funds in investing in debt market which suddenly increased the turnover of the debt market to billions in context to the year prior to this one. The height of all this is that the management in return didn’t pay a single paise to any one who had provided the funds. Suddenly, one fine day the Nagpur District Central Co-operative Bank woke up from a deep sleep and filed a case against Hometrade.com and its management alleging that they had been cheated by the management.
How the RBI comes in picture?:-
Can any one of you out there believe that the RBI wouldn’t be aware of all this ( its being said that the debt market operations are highly systematic as its being regulated by the RBI ). What did the RBI do? They called a meeting of the directors of the RBI at Kolkata ( the head office is in Mumbai, isn’t it ironical ) and prepared the guidelines for co-operative banks and left to have a nap. Till yet, no further action has been taken by the RBI.
The level of quick sand is to greater extent, then, what I am revealing. All these are allegations and trail is still to be proved. Do you think that the management would be behind the bars? Keep fingers crossed.
Yeah! ’’LIFE MEANS MORE’’ but for Sanjay Agrawal who is on world tour and for investors ’’LIFE MEANS STARVING’’.
I have some 15 odd mails in my mail box, some are for their desire to make me their customer, some asking my opinion that whether, I would invest in the mutual fund, if started by them and some are weekly newsletter stating how much their customers earn weekly by trading with them, including some tips on do’s and don’ts.
MORAL OF THE STORY:-
I kept my jewellery box open in the mid of my house and went to have a nap. When I woke up, I found that I am looted, I am shouting and running here and there for help. In past, similar kind of incidents took place, I am aware of it. Do you think that, I have right to shout? Simultaneously, I feel that investors don’t do their homework properly and aren’t able to keep control over their greed.
MY MOTTO:- Help Me:
1. To spread this story, so that each and every resident of India becomes cautious before investing and does their home-work.
2. I want that we as an investor keep control over our greed.