The Lok Sabha on February 13, passed a bill to protect gullible investors from Ponzi schemes, with Finance Minister Piyush Goyal saying the Government will ensure that no loophole is left while framing rules.
The Banning of Unregulated Deposit Schemes Bill, 2018, seeks to put in place a mechanism by which such depositors can be compensated. It has incorporated recommendations of the Standing Committee on Finance.
Replying to a discussion on the Bill, Mr. Goyal said out of the total 978 cases of unauthorized deposit schemes, 326 are from West Bengal, which is more than one-third of the total such schemes.
The bill, which has been introduced in the House on February 12, seeks to plug loopholes which allow Ponzi schemes to target small investors.
The bill has been passed on February 13 — the last day of Budget session — by a voice vote after a short discussion.