Suppose 100 certificates are issued at Rs. 1,000,000 each and the money has not yet been used to buy assets.
• Each certificate represents Rs. 1,000,000 cash.
• Selling it for more or less would amount to unequal exchange of the same currency.
• Therefore it cannot be traded like a tangible asset share while it represents money only.
Keeping the legal roles clear prevents the arrangement from being treated like a fixed-return loan. Capital, management, ownership and profit entitlement should each follow the role actually undertaken.