Ponzi Companies to Face Fines up to 3 Times of Profits


Operators of illegal money-pooling schemes will soon face penalties of up to 3 times the profit made by them, against the current provision of a meagre fine of Rs. 1 crore.

Capital markets regulator SEBI (Securities and Exchange Board of India) has decided to increase the monetary penalty for those running unauthorised collective investment schemes (CIS), as the existing mechanism have not proved to be sufficient to deter such illegal mobilisation of money.


A proposal to this effect has been approved by SEBI and the same would be notified soon, an official said.
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