Regulation of Multi-Level Marketing Companies

Posted: 18/08/2012 in News, PIB
Tags: , ,

Government is aware of a number of multi-level marketing companies operating in the country are disguised as those selling products but they are inherently operating money circulation scheme. Some complaints have been received, in the light of which, the Government, in Department of Financial Services, has constituted an Inter- Ministerial Group consisting of representatives from Department of Financial Services, Ministry of Corporate Affairs, Reserve Bank of India, Securities Exchange Board of India, Department of Consumers Affairs, CIEB (Department of Revenue) and SFIO to –

(i) Draft Model Rules on the Multi Level Marketing Companies and on the prohibited scheme under the prize Chits and Money Circulation Schemes (Banning) Act, 1978.

(ii) Frame clarificatory guidelines on how to distinguish between genuine direct sales from disguised money circulation scheme.

This information was given by Minister of State for Corporate Affairs Shri R.P.N. Singh in reply to a written question in the Rajya Sabha today.

Source: Press Information Bureau.




Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s