“During the last three years, eight cases involving 84 companies have been assigned to Serious Fraud Investigation Office (SFIO). Although the term “Ponzi Schemes” is not defined under the Companies Act, 2013, Ministry of Corporate Affairs (MCA) has ordered and assigned investigation into the affairs of the numbers of companies which are allegedly involved in Ponzi/Multi-Level Marketing/Chit Fund Activities”, minister of state of corporate affairs Rao Inderjit Singh said in the Rajya Sabha on Tuesday.
He also listed initiatives and measures taken by MCA and provided data on the number of programs conducted by the ministry. Under the Companies Act, 2013, there is an Investors Education and Fund Protection program that collaborates with Partner Institutes and organises Investor Awareness Programmes across India.
The primary focus of these programmes is to make the participants aware of Do’s and Don’ts while making any Investment and to sensitize them about various fraudulent and Ponzi Schemes. Campaigns are also run by public broadcasters, including Doordarshan and All India Radio, that create awareness through scroll messages, jingles, talk shows etc, he added.
