“Majority of money mobilised are in the nature of activities like prize chits, money circulation schemes, multi-level marketing/pyramid schemes and ponzi schemes,” the affidavit submitted. “Ponzi schemes do not fall under the regulatory purview of SEBI. It places responsibility of protecting innocent investors on State governmentsThe Securities and Exchange Board of India (SEBI) on Monday denied any regulatory purview over ponzi schemes, squarely placing the responsibility of protecting investors on State governments. The regulator, however, shared its experience that an overwhelming majority of complaints received from the public about unauthorised money mobilisation related to ponzi schemes. But SEBI expressed its helplessness in regulating “banned activities” unless made aware of their existence.

Source: The Hindu August 08, 2016 22:56 UTC