Press Information Bureau

Government of India

Ministry of Corporate Affairs

20-December-2012 19:30 IST

Department of Financial Services has constituted an Inter-Ministerial Group consisting of the representatives from Department of Financial Services, Ministry of Corporate Affairs, Reserve Bank of India, Securities and Exchange Board of India, Department of Consumers Affairs and Central Economic Intelligence Bureau (CEIB) to draft model Rules on Multi-Level Marketing (MLM) Companies and on the prohibited schemes under The Prize Chits and Money Circulation Schemes (Banning) Act, 1978. Giving this information in written reply to a question in the Lok Sabha today, Shri Sachin Pilot, Minister of Corporate Affairs, informed the House that the said Inter-Ministerial Group will also frame clarificatory guidelines on how to distinguish between genuine direct sales from disguised money circulation Schemes.

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KKP

Multi-level marketing regulation: group to draft model rules and guidelines to curb disguised money circulation schemes. An inter-ministerial group will draft model rules for Multi-Level Marketing companies and identify schemes prohibited under the Prize Chits and Money Circulation Schemes (Banning) Act, 1978, and will prepare clarificatory guidelines to distinguish genuine direct selling from disguised money circulation schemes.