Well-defined norms for money raising schemes needed, Sebi tells govt
“Sebi has written to the government seeking a well-defined framework for regulating money raising schemes like multi-level marketing schemes, timeshare schemes, emu farming, gold purchase schemes, goat farming and deposit collection for real estate development,” minister of state for finance Namo Narain Meena told the Rajya Sabha in a written reply.
The minister said the proposal sent by Sebi "requires extensive consultations with different departments and ministries in the government and no time-frame can be estimated for concluding the decisions that may emerge from this process".
Recently, a company promising returns on investments made for rearing goats had come under the scanner of Sebi. Claiming to have large goat-rearing farms in northern parts of the country, Beetal Livestock & Farm had solicited investments from the public with a promise of 2% monthly returns, and doubling of money in 3-4 years.
Meanwhile, corporate affairs minister Sachin Pilot informed the Lok Sabha that plan to publish the names of multi-level marketing companies that have come to the notice of the ministry is under consideration. “Decision to publish names of multi-level marketing companies that come to notice of this ministry is under consideration of this ministry," he said.
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