Alpha Legal Updates

  • India
  • 03/11/2019

The President of India promulgated The Banning of Unregulated Deposit Schemes Ordinance, 2019 (“Ordinance”) on February 21, 2019 (No. 7 of 2019) for providing an immediate and comprehensive mechanism to ban unregulated deposit schemes with the aim to protect the interests of depositors. The Ordinance provides detailed definitions of the term ‘deposit’, ‘depositor’, ‘deposit taker’, ‘Regulated Deposit Scheme’, ‘Unregulated Deposit Scheme’ etc. Additionally, the Ordinance covers different aspects relating to the competent authority to be constituted for the purpose of the Ordinance and the designated court which shall have jurisdiction in respect of any matter of the Ordinance (Chapter III), the requirement of intimation of business by a deposit taker to the authority designated by the Central Government for the said purpose (Chapter IV), detailed provisions relating to restitution to depositors (Chapter V), offences and punishments under the Ordinance (Chapter VI) and certain other procedural and miscellaneous provisions (continue)

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