Chit funds: Ministry of corp affairs moots new law

Ministry of corporate affairs has mooted new law to cover chit funds. The ministry has proposed that the issue of chit funds should be examined in light of RBI's definition of financial institutions

May 16, 2013 / 17:48 IST

The ministry of corporate affairs has mooted new law to cover chit funds. The ministry has proposed that the issue of chit funds should be examined in light of Reserve Bank’s (RBI) definition of financial institutions. It has also proposed merger of chit funds act 1982 and Prize Chits Act 1978 to help avoid overlap and confusion in enforcement.

The ministry wants the Registrar of Companies to give priority to scrutiny of a finance company's filings. It has also proposed new laws by state-governments on lines of Tamil Nadu's protection of the depositor's law.

first published: May 16, 2013 05:48 pm

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