Sebi seeks 'well-defined' norms for money raising schemes
New Delhi: Market regulator Sebi has approached the government seeking a "well-defined" framework for regulating various money raising schemes such as multilevel marketing and goat farming.
"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 on Thursday.
The Minister said the proposal sent by Sebi "requires extensive consultations with different Departments/Ministries in the Government of India 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 (P) Ltd had solicited investments from the public with a promise of 2 percent monthly returns, and doubling of money in 3-4 years.
Meanwhile, Corporate Affairs Minister Sachin Pilot on Thursday informed the Lok Sabha that plan to publish the names of multi-level marketing companies that have come to adverse notice of the Ministry is under consideration.
"Decision to publish names of multi-level marketing companies which come to adverse notice of this Ministry is under consideration of this Ministry," Pilot said in a written reply.
Public can view the names of the companies registered under the Companies Act, 1956, and documents filed by any company on MCA-21 portal by paying a nominal fee of Rs 50, the Minister noted.