{"id":86177,"date":"2019-08-01T17:11:23","date_gmt":"2019-08-01T11:41:23","guid":{"rendered":"http:\/\/factly.forumias.com\/?p=8708"},"modified":"2019-08-01T17:11:23","modified_gmt":"2019-08-01T11:41:23","slug":"what-the-bill-to-curb-ponzi-schemes-says","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/what-the-bill-to-curb-ponzi-schemes-says\/","title":{"rendered":"What the Bill to curb Ponzi schemes says"},"content":{"rendered":"\n<ol class=\"wp-block-list\"><li>The Rajya Sabha has passed the Banning of\nUnregulated Deposit Schemes Bill, 2019. It seeks to tackle the problem of\nillicit deposit taking activities in India and protect the interests of\ndepositors.<\/li><li>According to the bill, a scheme is unregulated\nif it is not registered with the regulators listed in the Bill. There are\nseveral regulators; For example: a) Reserve Bank of India (RBI) regulates\ndeposits accepted by non-banking financial companies, b) Securities and\nExchange Board of India (SEBI) regulates collective Investment Schemes, c)\nMinistry of Corporate Affairs regulate deposit taking activities by companies\nother than NBFCs and d) state and union territory governments regulate chit\nfunds and money Circulation Schemes.<\/li><li>The bill creates three different types of\noffences- a) running of unregulated deposit schemes, b) fraudulent default in\nregulated deposit schemes, and c) wrongful inducement in relation to\nunregulated deposit schemes.<\/li><li>The Bill provides for complete prohibition on\npromoting, operating, issuing advertisements or accepting deposits in any\nUnregulated Deposit Scheme. It bans the unregulated deposit-taking activities\nby making the offence ex-ante i.e. based on assumption and prediction.<\/li><li>It also provides for severe punishment ranging\nfrom 1 year to 10 years and pecuniary fines ranging from Rs 2 lakh to Rs 50\ncrore to act as deterrent.<\/li><li>The bill also provides for attachment of\nproperties or assets and subsequent realisation of assets for repayment to\ndepositors. Clear-cut timelines have been provided for attachment of property\nand restitution to depositors.<\/li><li>It also provides for a Competent Authority by\nthe State Government to ensure repayment of deposits in the event of default by\na deposit taking establishment.<\/li><\/ol>\n","protected":false},"excerpt":{"rendered":"<p>The Rajya Sabha has passed the Banning of Unregulated Deposit Schemes Bill, 2019. It seeks to tackle the problem of illicit deposit taking activities in India and protect the interests of depositors. According to the bill, a scheme is unregulated if it is not registered with the regulators listed in the Bill. There are several&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/what-the-bill-to-curb-ponzi-schemes-says\/\">Continue reading <span class=\"screen-reader-text\">What the Bill to curb Ponzi schemes says<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3127],"tags":[3148],"class_list":["post-86177","post","type-post","status-publish","format-standard","hentry","category-economy","tag-banning-of-unregulated-deposit-schemes-bill","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704896071},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/86177","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=86177"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/86177\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=86177"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=86177"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=86177"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}