The Securities and Exchange Board of India has written to the Government seeking a “well-defined framework” for regulating money raising schemes such as multi-level marketing and timeshare schemes.
This was stated by Namo Narain Meena, Minister of State for Finance, in a written reply to a Rajya Sabha question on Thursday.
Many money raising schemes such as emu farming, gold purchase schemes, goat farming, and deposit collection for real estate development have appeared in various parts of the country.
Some of these schemes have come under the scanner of the capital market regulator as they promise abnormally high returns on investments.
The proposal sent by SEBI requires extensive consultations with different departments/ ministries in the Central Government and no time frame can be estimated for concluding the decisions that may emerge from this process, Meena said.
Meanwhile, the Corporate Affairs Ministry is contemplating publishing of the names of multi-level marketing companies that come to its adverse notice.
This was stated by Corporate Affairs Ministry Sachin Pilot in a written reply to a Lok Sabha question.