Many MLM companies are located in West Bengal and Tamil Nadu. The Serious Fraud Investigation Office (SFIO) is probing alleged scam perpetrated by MLM firm SpeakAsia, which is registered in Singapore.
Pilot said that small investors get hurt the most through such schemes, whose operators promise huge investment returns within short time periods. "These are the people who earn a few thousands of rupees and fall for such traps," he said.
When asked on how the MCA would be able to track these operators, as most of them are not even registered as companies, the minister said the tracking can still be done as money is involved and, therefore, they could be tracked through banking channels.
"But they (MLM firms) have to open a bank account and we can link it up. It is possible to do it (tracking them)," Pilot said.
According to the Minister, the government is making efforts to disseminate right information to people, especially the small investors, through the Investor Education Protection Fund (IEPF).
"Unless there is correct information, misinformation will take its place. There are enough people trying to swindle (money)... We need to give people the alternative investment products to make them understan what is wrong and and what is right," Pilot said.
Pilot said that small investors get hurt the most through such schemes, whose operators promise huge investment returns within short time periods. "These are the people who earn a few thousands of rupees and fall for such traps," he said.
When asked on how the MCA would be able to track these operators, as most of them are not even registered as companies, the minister said the tracking can still be done as money is involved and, therefore, they could be tracked through banking channels.
"But they (MLM firms) have to open a bank account and we can link it up. It is possible to do it (tracking them)," Pilot said.
According to the Minister, the government is making efforts to disseminate right information to people, especially the small investors, through the Investor Education Protection Fund (IEPF).
"Unless there is correct information, misinformation will take its place. There are enough people trying to swindle (money)... We need to give people the alternative investment products to make them understan what is wrong and and what is right," Pilot said.
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