Law and Justice

Banning of Unregulated Deposit Schemes-Corrigenda for provisions of RBI/SEBI Act deleted

Banning of Unregulated Deposit Schemes-Deposits by co­operative society from members, attachment of bank accounts/property under SEBI Act deleted

The Banning of Unregulated Deposit Schemes Ordinance, 2019 had been promulgated to curb illicit deposits taking activities.

The Ordinance bans Deposit Takers from promoting, operating, issuing advertisements or accepting deposits in any Unregulated Deposit Scheme

The said Ordinance also made amendments to other enactments as under:

Reserve Bank of India Act, 1934 to provide that the amounts accepted by a co­ operative society from the members or shareholders (excluding the share capital), shall be deemed to be deposits for the purposes of this clause, if such members or shareholders are nominal or associate members who do not have full voting rights in the meetings of such co-operative society.

Securities  and  Exchange  Board  of  India  Act, 1992 to provide attachment of bank accounts or other property of any intermediary or any person associated with the securities market in any manner involved in violation of the Ordinance.

However the Government has issued a corrigendum today to delete the above provisions.

Download the Corrigendum Click Here >>

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