Section 3, 4, 5, and 6 of Banning of Unregulated Deposit Schemes Act 2019

 

CHAPTER II BANNING OF UNREGULATED DEPOSIT SCHEMES

Section 3. Banning of Unregulated Deposit Schemes

On and from the date of commencement of this Act,-

(a) the Unregulated Deposit Schemes shall be banned; and

(b) no deposit taker shall, directly or indirectly, promote, operate, issue any advertisement soliciting participation or enrolment in or accept deposits in pursuance of an Unregulated Deposit Scheme.

 

Section 4. Fraudulent default in Regulated Deposit Schemes

No deposit taker, while accepting deposits pursuant to a Regulated Deposit Scheme, shall commit any fraudulent default in the repayment or return of deposit on maturity or in rendering any specified service promised against such deposit.

 

 

 

Section 5. Wrongful inducement in relation to Unregulated Deposit Schemes

No person by whatever name called shall knowingly make any statement, promise or forecast which is false, deceptive or misleading in material facts or deliberately conceal any material facts, to induce another person to invest in, or become a member or participant of any Unregulated Deposit Scheme.

 

Section 6. Certain scheme to be Unregulated Deposit Scheme

A prize chit or a money circulation scheme banned under the provisions of the Prize Chits and Money Circulation Scheme (Banning) Act, 1978 (43 of 1978) shall be deemed to be an Unregulated Deposit Scheme under this Act.