Companies & Sectors
HDFC Bank asked to pay Rs55,000 as compensation

According to the Consumer Forum, HDFC Bank committed deficiency in service by lifting the...

Premium Content
Monthly Digital Access

Subscribe

Already A Subscriber?
Login
Yearly Digital+Print Access

Subscribe

Moneylife Magazine Subscriber or MSSN member?
Login

Yearly Subscriber Login

Enter the mail id that you want to use & click on Go. We will send you a link to your email for verficiation
Railways to pay Rs60,000 for theft of passenger's purse

The passenger was travelling a reserve compartment and there was a coach attendant and in...

Premium Content
Monthly Digital Access

Subscribe

Already A Subscriber?
Login
Yearly Digital+Print Access

Subscribe

Moneylife Magazine Subscriber or MSSN member?
Login

Yearly Subscriber Login

Enter the mail id that you want to use & click on Go. We will send you a link to your email for verficiation
Government panel suggests campaign against MLM, pyramid and ponzi schemes

The inter-ministerial committee also suggested framing of fresh guidelines on the nature of operation of the direct selling and MLM companies

 
New Delhi: A government panel has suggested running a public campaign under the flagship consumer awareness programme 'Jago Grahak Jago' to guard the gullible investors against multi-level marketing (MLM) and pyramid structure companies collecting money through ponzi schemes, reports PTI.
 
The recommendation has been made by the inter-ministerial committee, headed by Consumer Affairs Secretary and comprising of members from Reserve Bank of India (RBI), Finance Ministry, Corporate Affairs Ministry and Law Ministry among others, sources said.
 
The panel has suggested that this consumer awareness programme can be used to make the public aware about pitfalls of ponzi schemes, which typically involves collection of money from public in different layers with promise of rising returns with every new investors added to the scheme.
 
The committee has also suggested framing of fresh guidelines on the nature of operation of the direct selling and MLM companies so that genuine companies are differentiated from those taking the investors and general public for a ride.
 
Department of Financial Services is currently examining formulation and issuance of guidelines for such firms under the Prize Chit and Money Circulation Schemes (Banning) Act, 1978, which will be circulated among the concerned ministries for their views once it is completed, sources said.
 
The department will also consult market regulator SEBI while framing the guidelines, they added.
 
The committee was constituted in July this year by the Consumer Affairs ministry, after it received complaints regarding alleged large scale frauds by multi level marketing companies, which included defaults in payments and operators disappearing with the money collected from public.
 
The committee was mandated to examine the complex issues related to the working of such firms, fill the regulatory gaps and suggest measures to safeguard the interests of the consumers.
 

User

COMMENTS

MOHAN

4 years ago

sooner the better

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)