FAQs Universal Capital

It is a CONTRACT between the foreman, as the Promoter is called, and the subscribers, who join voluntarily. It is a FINANCIAL SYSTEM under which the periodical and regular savings of a group of subscribers are made available to each subscriber, a SPECIFIED AMOUNT every month (instalment) for a SPECIFIED PERIOD. The Pooled funds every month are offered to the subscribers at monthly AUCTIONS and the subscriber who BIDS for the highest DISCOUNT is declared the PRIZE WINNER and given the PRIZE AMOUNT on proper security. A Prized subscriber also should continue to pay the subscriptions till the termination of the Concept. The amount foregone as discount, less foreman?s commission is distributed among the subscribers as dividend.
A Concept group refers to a specified number of members agreeing to subscribe a specified amount for a specified period. For example, 40 members, 40 months, Rs.500/- a month. The number of members and the number of months are to be the same.
Any person under the Act responsible for the conduct of the Concept and includes any Person, such as branch manager, discharging his functions.
No. It is valid only for the duration of a Concept GROUP and until the liabilities of subscribers to foreman or vice versa are discharged or paid in full.
a) To save in small amounts to receive a lump sum during the period of Concept. b) To borrow the future savings in advance. Some subscribers join Concept funds to borrow and others to save.
The Concept agreement is a contract between the foreman and the individual subscribers to a Concept group. It is a set of bye-laws or regulations dealing with the procedure for the conduct of Concepts. It will be signed in duplicate, duly witnessed. The Concept agreements shall contain the name and address of the subscriber, the number of tickets allotted to him, the number of instalments and the instalment amount payable, the interest/penalty for delayed payment, the probable date of commencement of Concept and its duration, the manner of deciding the prize winner at each instalment, the maximum discount to be foregone at each instalment, the mode and proportion of dividend and foreman?s commission, the date, time and place of auction, the instalment at which the foreman is to get the Concept amount, the name of the bank, the security to be furnished by prized subscriber etc., Though each subscriber is supposed to sign the Concept agreement, in practice, each subscriber signs a declaration in the application form that he has read and understood the terms and conditions of the Concept Agreement. The declaration of all the subscribers are detached from the application form, pasted in a piece of paper and filed with the registrar.
The subscribers have to fill in an application form furnishing particulars of their names, residential and office addresses, approximate gross monthly salary, names of nominees and their relationship to them. They also have to sign the declaration that they have read and understood the terms & conditions of the Concept Agreement. BENEFITS OF Concept 1.1 A good source of Finance for all contigencies. 1.2 Way of saving or borrowing to meet Special expenses like marriage or building or purchase of a house or flat 1.3 Source of finance for businessmen 2. DETAILS OF GROUPS AVAILABLE ETC., 2.1 Details of groups available and other information as to the mode of auction and nature of security required are available the branch. 2.2 The security indicated will normally apply for one Concept .If the subscriber holds more than one prized Concept in the same branch or other branches of the Company, the combined future liability will be taken into account for the purpose of security. 2.3 The subscriber may select a suitable group depending upon his capacity to pay monthly and also on his ability to provide adequate security, immovable or otherwise. 2.4 Subscribers may seek the guidance or the branch in all matters. 2.5 Right of admission to Concepts is reserved by management. 3. REMITTANCE OF SUBSCRIPTION 3.1 Subscribers must pay the monthly instalments on or before the due date either by cash or cheque or D.D to pariticipate in the auction. Cheques should have been encashed before the date of the auction for eligibilty to participate in the auction. 3.2 Every month, immediately after the auction (within 7 days) intimation cards containing details of bid amount in the last auction, monthly instalment payable , any payable du, date of next auction, due date for payment etc., are send to the subscribers. no-receipt of intimation card will not be accepted as an excuse for non-payment or belated payment. 3.3 Failure to remit instalments in time by both prized and non-prized subscribers will entail forfeiture of dividend besides being charged interest as detailed in Concept agreement. In respect of non-prized subscribers, default in payment of monthly subscription will disqualify them from participating in the auction. 3.4 Cheques form outstation subscribers drawn on any bank which is a member of Banker's clearing house only will be accepted at par. 3.5 If cheques given are dishonoured, future subscription will be accepted only in cash. Penalty charges by the Bank in respect of such dishonoured cheques will be recovered from the subscriber. 3.6 To facilitate subscribers, monthly instalments are being accepted in all branches and Service Centres in Tamilnadu even if the Concept does not belong to that branch. Such a facility is only gratuitous. The Company however will not be held responsible if the remittance details are not received by the branch in which the Concept is held from the other branch or service centre where remittance is made before the auction date. 3.7 The facility of payment of subscriptions in a branch other than the branch where the Concept is held, will not be available to defaulted prized subscribers against whom awards have been passed by the Deputy Registrar of Concepts. If however such subscribers pays such amount in "other branch" such amount will be treated as only as "on account" and not relating to any particular instalment. 3.8 Subscribers are advised to give only "Account Payee" cheques in the name of the Company. Issuing blank cheques or Self cheques to our collection agents should be strictly avoided. 3.9 In the event of a prized subscriber receiving a notice under Sec.33 even though he had remitted the uptodate instalment in another branch of the company, it is the duty of the subscriber to produce such receipt to the branch where his Concept is held and reconcile the matter. 4. PROCEDURE FOR AUCTION 4.1 Eligibility for prize money is determined by auction. In all auctions commencing from the 2nd instalment, subscribers can bid upto a maximum of 40% only. if more than one subscriber offers identical discount, the prized subscribers will be determined by lot. The bid amount shall be in multiples of Rs. 50. the minimum discount foregone shall be not less than the foreman's commission for the group. 4.2 The duration of auction will be 5 minutes. Specific time is assigned for each group on a specific date. If the auction date falls on a holiday or if owing to unforeseen cause the date and time have to be changed, such change of time/date will be notified individually and also in the branches. 4.3 Subscribers can participate either in person or through a duly authorised representative. Written authorisation is necessary. 4.4 The subscribers can also communicate offers in writting in a closed cover superscribing as : "Bid offer to be opened at the time of auction only, for Group No.......... auction on ..............." 4.5 Telephonic/Telegraphic offers are not accepted. Original receipt should be produced at the time of auction, if cash payment of subscription is made on the date of auction. 4.6 The request for offer/ tender/ Inclusion in lot should be presented only at the branch in which Concept is held. 4.7 Whenever a non-prized subscriber has given his Concept under lien to another prized ticket, such non-prized subscriber can participate in auction only when the liabilities of the prized ticket are fully paid or alternative acceptable security is offered and the lien is lifted. 5. Subscribers who had given standing offers should ascertain the trend of bidding and modify their offers if necessary. 5.1 Distribution of Dividend 5.2 5% of the Concept value shall be deducted from the amount towards foreman commission and the balance distributed as dividend equally among all eligibile subscribers in all Concepts started after October 2008. The dividend will be adjusted in subscription for the next instalment As per the present policy four groups with25, 30,40,50 months duration will be floated by our branches. 6 RELEASE OF PRIZE MONEY 6.1 The prize money will be paid to the successful subscriber on a working day before the next auction date on the basis of adequate and satisfactory security, offered to cover the combined future liability of all Concepts held by the subscriber in all branches of the company. 6.2 Prize money will be released by "A/c Payee Cheques" only . If payment is desired through Bank draft by outstation subscribers, it will be obtained deducting D.D Commission provided a branch of the bank with whom the company is having account is functioning there 6. With effect from 01-06-2007 'Service Tax' is leviable from the Prize Money received by every Prized subscriber at the rate of 12.36% on the foreman's commission for the Prized Concept. The rate is liable to change as per government orders. 7. CHANGE OF ADDRESS Any change in the address of a subscriber prized and non-prized and gaurantors in the case of prized Concepts should be promptly intimated to the Foreman under acknowledgement. In the absense of such proper intimation the Foreman is not responsible for non-receipt of any intimation or notice from the Foreman in connection with their Concept. . 8. GENERAL The above information is indicative of the broad procedure followed. For all Purposes, the provisions in the Concept Funds Act, 1982 the Rules framed thereunder and the Concept agreement will be final. Concept branches will provide you with all information required. Sometimes you may face certain difficulties or grievances against the branch. You may refer such cases to the concerned Divisional / Regional Manager / Zonal Chief Executive for immediate attention. Still if you find any difficulty please Contact Us :