Table of Contents
Ques. Identify the correct statement/s about Ponzi scheme.
Ponzi scheme is a regulated deposit scheme.
Scheme is named after Charles Ponzi.
a) 1 only b) 2 only c) 1 and d) Neither 1 nor 2
Regulated deposit
- SEBI.
- IRDA.
- CENTRAL REGISTRAR.
- STATE GOVERNMENT.
- NATIONAL HOUSING BOARD.
- PFRDA
- STATUTORY BODY.
- Unregulated Deposit Scheme’ means a scheme or arrangement under which deposits are accepted or solicited by any Deposit Taker by way of deposit taking business, and which is not a Regulated Deposit Scheme.
COLLECTIVE INVESTMENT SCHEME
- A Collective Investment Scheme (CIS), as its name suggests, is an investment scheme wherein several individuals come together to pool their money for investing in a particular asset(s) and for sharing the returns arising from that investment as per the agreement reached between them prior to pooling in the money.
- Regulated by SEBI.
WHY NEED FOR BILL?
- One of the report—6 crore Indian—deposited about 68000crores.
- Rising instances of people in various parts of the country being looted by illicit deposit taking schemes.
- Worst victims of these schemes are the poor and the financially illiterate.
Features
- Focus on Repayment of money.
- Provision for punishment if any institution /individual practice unregulated deposit scheme.
- State to set competent authority –facilitate repayment of money.
- Companies which run unregulated deposit scheme –cannot do the advertisement.
- Online database—of companies-accessed by states.
- Setting of designated court—for trial
- The Central Government may authorize the creation of an online database of information on deposit taking activity in India.
- Every Deposit Taker which commences or carries on its business as such on or after the commencement of this Act shall intimate the Competent Authority .
- The attached money or property of the Deposit Taker and the persons mentioned .
WHAT CAN BE DONE?
- BANKERS to be more vigilant-use of software.
- Improve financial literacy.
- Change in people attitude—greed for quick money making.
- Proactive steps not post mortem by regulators.
- Justice to prevail not to delay or denied-white collar criminals
- Companies have right to run the business—and people have right to rotate the money—government need to regulate.
Ques-How Banned deposit regulation scheme bill if implemented can help to control the financial fraudulents in India?
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