 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
Arbitration.in proposes to share the commercial benefits of this venture with the users through an innovative Reward Point System.
The Reward Point System.
For the purpose of this scheme, the users of Arbitration.in services will be classified into the following three categories.
1. Adhoc Users
2. Frequent Users who use the services of Arbitration.in at least 4 times in the previous year.
3. Privileged Users who buy Prepaid Service Coupons for use after 3/6/12/36/48 months (Coupons will be Non Refundable, But Transferable)
Reward points will accrue to each of these category of users based on
1. Usage of Paid services and payments made thereof.
2. Value of Pre paid Service Coupons purchased.
Current rate of accrual of reward points are as follows:
Adhoc Usage Reward Points (AURP) at the rate of 5 points for every Rs 100 paid as service fee to Arbitration.in (For use of the Platform)
Frequent Usage Reward Points (FURP) at the rate of 10 points for every Rs 100 paid a service fee to Arbitration.in (For use of the Platform). When a user reaches the milestone of 4 usages in 12 months, his unused accumulated points for the four sessions would be upgraded from AURP to FURP.
Privileged User Reward Points (PURP) will be credited for every purchase of Prepaid Service Coupons for Rs 100 with a minimum purchase Rs 10,000/- at a time under the following rates.
-3 month coupons 25 points for every Rs 100
-6 month coupons 50 points for every Rs 100
-12 month coupons 75 points for every Rs 100
-36 month coupons 100 points for every Rs 100
-48 month coupons 125 points for every Rs 100
The Prepaid PURP coupons provide the right to use the Arbitration/Mediation platform under Arbitration.in in a period upto 12 months from the due date.
They are transferable and can be sold to other intending users at a price of the choice of the buyer and seller subject to registration of the transfer with Arbitration.in.
Encashment of Reward Points
Accumulated Reward Points can be encashed in exchange of payment in respect of the subsequent use of the Arbitration service and will work as a discount. Currently the exchange rate for the Reward Points is One Point=one Rupee. Hence 36 month coupon will provide for free usage for the value of the coupons and 48 month coupons will leave a surplus also.
P.S: The rate of accrual or encashment of Reward Points may vary from time to time and will be announced on this website from time to time
Proposed Crowd Funding through PURP Coupons
In order to develop an avenue for Crowd funding, Ujvala Consultants proposes an innovative system that uses the PURP points as a unit of investment with short term liquidity with long term growth potential. However, it may be noted that the system is designed to share the prospects with the User community and not by pure investors who have no desire to use the facility.
For this purpose, the Reward Points under the PURP shall be considered transferable. Any holder can give a notice to Arbitration.in to register such a transfer and the beneficiary will be allowed to use the credit for his use. Appropriate procedure for this will be notified on the website. This process enables the holder to encash the coupons by transferring them to those who want to use the service at a price that leaves both the buyer and the seller of PURP at an advantage. This would assume relevance when there could be capacity issues in scheduling urgent meetings as well as the price benefits that may accrue.
The exchange would be facilitated on the website itself so that service users would be given an opportunity to buy outstanding coupons at a discount from other holders instead of buying the service at the published rate.
As a result of these proposals, any investor who invests in PURP would provide funds to the project securing himself with the possibility of encashing the investment by trading the PURP coupons and also retaining the option of conversion into equity if such an opportunity materializes.
Example: If A invests Rs 10000/- in PURP, he will be entitled to use Arbitration/Mediation platform for a value of Rs 10000/- upto a period of 1 year from the due date of the coupon. The accumulated PURP credit which could vary between 25% to 125%, depending on the period of the coupon, will be tradable and the beneficiary can use it within a period of 1 year from due date. If the PURP points are trade at par, the first PURP buyer would get a full refund if it is a 3 year coupon and lesser for smaller periods. This will be in addition to his own use upto the value of PURP.
48 month option has been provided for such of those buyers who may not be able to use the facility at all so that they may get a marginal return for the funds invested though their right to use the services is retained between the 48 and 60 month period.
Ujvala Consultants Pvt Ltd is also considering a proposal to siphon off Arbitration..in into a separate Company and issue equity stake. If the proposal is finalized and implemented, it is proposed that any outstanding value of Prepaid Coupons be optionally converted into equity stake.
The rate of such conversion and the maximum limit upto which conversion options would be allowed, will be decided on the basis of appropriate valuation from time to time. Until further notice, it is proposed that the conversion of prepaid coupons to equity stake could be at the rate of Rs 2.5 lakhs=1%. The maximum convertible limit at present is pegged to 10%. If there is any change in the rate of exchange, it will be applicable to all outstanding coupons after a waiting period of 3 months.
The optional equity conversion proposal is provided here with the specific disclaimer that this is only a tentative proposal under consideration and there is no specific action taken in this direction at present.
The information is provided here for the purpose of transparency and also to keep on record the Intellectual Property related to an innovative system of crowd funding that this system represents.