Fake investment schemes mostly MLM, CIS activities: Government

Admin   |   26 December, 2014   |   279   |   3980

NEW DELHI: As regulators step up their fight against investment frauds, the government today said most of such schemes adopt Multi-Level Marketing (MLM) or Collective Investment Scheme (CIS) model to cheat gullible people.

To curb such activities, various steps including stricter corporate governance norms have been prescribed in the new Companies Act, Minister of State for Finance Jayant Sinha said today.

"Cheating by entities/persons through fake schemes is done mostly through dubious Multi-Level Marketing (MLM) schemes or through Collective Investment Schemes (CIS)," he said in a written reply to Rajya Sabha.