 "Black Money, laundering")
The Cabinet has cleared a Bill to ban unregulated deposits, by making even the act of running such Ponzi schemes an offence.
The current investor protection framework kicks in only after such schemes go bust. A Ponzi scheme is defined as a fraudulent investment operation, where the operator generates returns for older investors through revenue paid by new investors, rather than from legitimate business activities or profit from financial trading.
The Bill also seeks to make fraudulent defaults even in regulated deposit schemes an offence. The Cabinet also approved a Bill to facilitate the growth of chit funds, by distinguishing this segment
