ICAI issues 226 FAQs on The Banning of Unregulated Deposit Schemes Ordinance 2019

ICAI issues 226 FAQs on The Banning of Unregulated Deposit Schemes Ordinance 2019. CAs not to act in violation of Sections 3, 4 5 and 6 of the Ordinance.

The ‘Banning of Unregulated Deposit Schemes Ordinance 2019’ was necessitated by the difficulties faced in investigating of ponzi-schemes. The said ordinance has been promulgated to completely ban unregulated deposit schemes, it prohibit solicitation or acceptance of deposits outside the Regulated Deposit Scheme.

The Ordinance provides for a effective mechanism to absolutely ban unregulated deposit schemes to protect the interests of depositors and provides for stiff penalties for the offences involving wrongful inducement, solicitation or acceptance of deposits under an unregulated deposit schemes as well as fraudulent default in repayment or return under a Regulated Deposit Scheme.

The Committee on Economic, Commercial Laws & Economic Advisory of ICAI has brought out FAQs on the Banning of Unregulated Deposit Schemes Ordinance, 2019’ help the Chartered Accountants in rendering services to stake holders in the relevant fields. 

As per the FAQ, currently no specific role has been prescribed for Chartered
Accountants under this Ordinance. However, a chartered accountant, after understanding the law, can advise or inform his clients / management on compliance required under Section 10 of the Ordinance. The CAs should not act in violation of Sections 3, 4 5 and 6 of the Ordinance.

The FAQs contain 226 questions and their answers in easy to understand language which is even helpful to general public in understanding the various provisions of the Ordinance.

The FAQ answers many apprehensions like whether amounts received from relatives or customer advances are deposits? what are the exclusions for different business entities? if  Trusts/Cooperatives/ Societies covered under the Ordinance? What is Regulated Deposit Scheme? etc.

Download ICAI FAQ on The Banning of Unregulated Deposit Schemes Ordinance 2019 Click Here >>

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