<h1>MLM Schemes Now Explicitly Banned Under Money Circulation Scheme Rules; States to Enforce New Regulations.</h1> Multi-Level Marketing (MLM) schemes that involve creating a vertical chain of investors or agents are classified as money circulation activities and are prohibited under the Prize Chits and Money Circulation Schemes (Banning) Act, 1978, which is enforced by state governments. To enhance regulation of MLM activities, a group comprising officials from various ministries and agencies, including the Reserve Bank of India and the Serious Fraud Investigation Office, has developed the Money Circulation Scheme (Banning) Rules. These rules aim to explicitly include MLM schemes under the Act, and the Ministry of Finance has forwarded them to the states for notification.