Cheque Related Query

paran · #1 3rd February 2012, 07:04 PM

Hi,

Suppose I issue a crossed cheque filling the MF name & amount to Mr.X.

Is it possible that Mr.X can misuse that cheque (i.e. can he use my cheque and fill MF application in his name)?

If that happens can I sue him & get back my money?

Alchemist · #2 3rd February 2012, 09:03 PM

If you go to the court, there is a good chance that you will get back your money.

Unless Mr.X can give a good reason why he used your check to invest in a mutual fund, the court will accept your claim that it was a misused check.

I wonder if the mutual fund will accept your check for Mr. X's application.

sdp1975 · #3 4th February 2012, 03:29 PM

Quote:

Originally Posted by Alchemist

I wonder if the mutual fund will accept your check for Mr. X's application.

I have applied for bonds in my wife's name but with a cheque from my account.

Atiker · #4 4th February 2012, 06:16 PM

As per "new" rules mutual funds can not accept third party cheques.

Note - net connection is slow so can't Google for the "new rules"

Alchemist · #5 4th February 2012, 07:00 PM

Quote:

Originally Posted by Atiker

As per "new" rules mutual funds can not accept third party cheques.

You are right.

Third party cheques are not longer accepted for mutual fund investments.

Quote:

Subscriptions into mutual fund schemes are not accepted if they are accompanied by payment instruments not drawn on the investor's bank account. Such instruments are called third party instruments. The Association of Mutual Funds in India has barred their use while investing in mutual funds, with the intent of preventing fraud and misuse.

Know all abouot third-party cheques in mutual funds - Economic Times