155
20 Jul 11: The Ministry of Corporate Affairs, under the aegis of Investor Education and Protection Fund, recently issued a notice in public interest advising few measures which are to be taken while depositing/investing in collective schemes of any entity either online or offline. The following are the guidelines which are to be followed by public:
- Any deposit(s)/investment(s) in collective schemes should be made only after critical thinking. Any kind of greed of intuition should be avoided.
- The company/entity in which you are interested to invest/deposit should be checked if it is registered under the Companies Act, 1956 or under Limited Liability Partnership Act, 2008. These details can be verified by logging in to the Ministry’s website www.mca.gov.in.
- The name of relevant regulator who will regulate your deposits/collective schemes should be ascertained as it helps while approaching the authority for redressal of grievances.
- Ministry of Corporate Affairs will not be responsible to protect the interest of investors if the entity/company is not registered under the above mentioned Acts.
- The credentials of the promoters/authorized representatives/business partners of entities should be verified.
- It is wise to seek the opinion of the experts if your yield or returns are unreasonably high.
- For further guidance regarding these investments/deposits, the investors can visit Ministry’s websites www.investorhelpline.com, www.iepf.gov.in and www.watchoutinvestors.com.
- All the above points are given to protect the investors from getting attracted to fraud entities/schemes.
Source: Indian Express