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Financial Technologies group's Jignesh Shah is the latest in a list of entrepreneurs backed by Private Treaties, who have got into regulatory headwinds.
Private Treaties, these days known as Brand Capital, was championed by the country’s largest media house as a win-win proposition between small companies looking to build a brand and the media house which had advertising space to sell. The clincher was that it was a no-cash deal. In a barter, the media house buys stakes in companies and, in return, promote these firms through advertising and brand building.
But, something seems to have not gone right. Did they choose Treaties because they thought they would need it badly at some point or Did the explosion of brand equity that Treaties brought give them the courage to wander into grey areas. Your call is as good as ours.
Let us look at key treaties clients in trouble:
Source: Sebi, Brand Capital, News reports
