The government of India is close to settling brand-new regulations for multi-level marketing firms in India and is also working on early warning system to prevent MLM company frauds.
The Serious Fraud Investigation Office (SFIO) — under the corporate affairs ministry– is working on a very early caution system that might assist in preventing company scams. Corporate affairs minister Veerappa Moilly claimed that the SFIO has actually established a home computer lab for this.
“This is part of the ministry’s vision for having actually strict MLM laws in India,” Moily pointed out.
Besides, the ministry pointed out the new regulations for multi-level Marketing companies have actually practically been finalized. “We had a close discussion with the Department of Financial Services in the Ministry of Finance. The Act, the Prize Chits and Money Circulation Schemes Act (Banning) 1978, under which these tasks can be regulated are under their purview,” Corporate Affairs Secretary Naved Masood pointed out.
“With each other, we have actually determined that we must have new regulations to prevent these fraud MLM companies from proceeding their nefarious tasks,” he added. The brand-new rules have been completed and also the RBI has actually been consulted with on the exact same, Masood included.
Our Take: If this law comes into effect, we believe that it will solve many MLM issues in India. The people who are involved with MLM industry will be able to take better call on any MLM company. Now, not only MLM distributors will be more aware but this will also help good MLM companies flourish.