According
to the information available with the Ministry of Corporate Affairs, companies
resorting to Multi-Level Marketing Schemes are doing so in contravention of
either the Prize Chits and Money Circulation Schemes (Banning) Act, 1978 or by
floating unauthorized ‘Collective Investment Schemes’ in contravention of
Section 11AA of the Security and Exchange Board of India (SEBI) Act, 1992.
Giving this information in written reply to a question in the Rajya Sabha, Shri
Sachin Pilot, Minister for Corporate Affairs, said that none of these companies
also appear to be registered as Non-Banking Finance Companies (NBFC). As part
of its drive to identify and weed out such companies, Ministry of Corporate
Affairs has shared the particulars of around 34,000 companies with objectives
of carrying on financial business with the Reserve Bank of India (RBI). RBI has
taken up verification of such companies.
0 comments:
Post a Comment