Explained: How Banning of Unregulated Deposit Schemes Bill save common investors | Explained News, The Indian Express

Explained: How Banning of Unregulated Deposit Schemes Bill save common investors | Explained News, The Indian Express

Edited by Explained Desk |New Delhi |Published: July 30, 2019 4:59:47 pm

Explained: How Banning of Unregulated Deposit Schemes Bill save common investors

In essence, all deposit schemes, with or without interest, except those regulated by the government, have been banned by the bill.

The Bill covers previously existing gaps in legislation that had been exploited by various parties to siphon large amounts of money away from small investors.

On July 29, the Rajya Sabha passed the Banning of Unregulated Deposit Schemes Bill, 2019. The Bill was introduced in the Lok Sabha on July 19 by Finance Minister Nirmala Sitharaman and aims to protect investors from fraudulent investment schemes, such as Ponzi schemes. The Bill covers previously existing gaps in legislation that had been exploited by various parties to siphon large amounts of money away from small investors.