Collective Investment Schemes On Hold By Sebi

Sebi collective investment schemes [ CIS ] is banned in cash investments . Generally, the interest of investors in the Securities and Exchange Board of India [ SEBI ] has taken this important step . Now the only Czech , bank draft through banking channels as will be invested in these schemes . SEBI will at least get the benefit of investors , through such schemes as well as the activities of Mneelandring will stop . New rules issued by the regulator are applied by Thursday .
SEBI 's new rule save investors from falling prey to scams like Sardha . They bring transparency in the CIS through fund-raising activities . Besides locating the source of funds and real money investors in such schemes may be easily identified . In recent years, a large number of cases in which innocent - innocent investors have been duped by illegal collective investment schemes .
These new rules of the regulator Securities and Exchange Board of India [ collective investment scheme ] will be known as Amendment Regulations 2014 . It baldly stated , " units of collective investment schemes offered in exchange for payment of the subscription only Czech , demand draft or by any other banking channel will be . In any case it can not be paid in cash . " Controlled or prohibited under any other law shall not have any other scheme of the CIS .


Collective investment scheme management company demat units to be issued under [ electronic ] to keep as a depository must deal with . The regulator also said that the company KYC [ Know Your Customer ] guidelines to be followed.