Govt panel for ban on defaulter MLM firms, blocking websites
- IPL spot-fixing case: Actor Vindoo Dara Singh arrested in Mumbai
- Supreme Court rules out ban on IPL matches, slams BCCI over spot-fixing
- Li Keqiang pitches for more Chinese investments as he backs trade balance
- Narendra Modi holds talks with Advani ahead of BJP's strategy meeting in Delhi
- Aarushi murder case: HC rejects Talwars' plea to examine 14 witnesses
To check the menace of companies collecting money from the public through ponzi schemes, a government panel has suggested wide-ranging changes in the rules governing such businesses, including a ban on defaulter firms and blocking their websites being operated from abroad.
The inter-ministerial committee, set up to look into the matter, has also suggested setting up of a central agency to oversee multi-level marketing (MLM) schemes and framing of fresh guidelines for them by the Finance Ministry in consultation with market regulator Sebi and other ministries and agencies.
Such schemes are also broadly known as 'ponzi' schemes, wherein money is pooled in by the operators from public for dubious investment purposes with a promise of hefty returns.
The committee, comprising of members from Reserve Bank as also Consumer Affairs, Corporate Affairs, Finance and Law ministries, also suggested that action can be taken against online companies like Speak Asia even if consumers do not
complain against these entities, sources said.
The panel felt the need to check websites from operating from outside India and filters need to be placed at the point of gateway and the Department of Information Technology can be asked to take necessary action in this regard, they added.
The panel has favoured nominating a central agency by the Department of Financial Services with powers to probe such firms and to take legal action against the defaulters.
It has also been suggested that laws in other countries, such as China's anti-pyramid statues and Singapore's Multi Level Marketing and Pyramid Selling (Prohibition) Act can be consulted while formulating the guidelines in India.
However, the panel does not favour a central legislation to regulate MLM companies as the matter relates to the state governments and state police, which have sufficient powers to take action against such firms under existing regulations.
- 'Sophisticated' Indian cyberattacks targeted Pak military sites: Report
- Talkative Li quoted Weber, Hegel, Jobs, said PM is large-hearted
- Bihar food corp ends up with chaff as rice worth Rs 535 cr vanishes from mills
- In 7 lucrative minutes on May 9, Sreesanth bowled 6 balls, bookie made Rs 2.5 cr
- India and China ask border envoys to work on more steps
- Former Ranji player among 3 more held