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Jul 18, 2011, 08.58 AM IST | Source: CNBC-TV18

RBI to notify new rules on MLM firms shortly: Sources

The Reserve Bank of India is likely to notify new rules on Multi-Level Marketing (MLM) companies shortly, reports CNBC-TV18 quoting sources.

The Reserve Bank of India (RBI) is likely to notify new rules on Multi-Level Marketing (MLM) companies shortly, reports CNBC-TV18 quoting sources. The MLM companies are likely to come under a regulatory framework soon.

The Ministry of Corporate Affairs (MCA) and RBI are working together to frame the rules to supervise MLM firms. Sources say as per the norms, all MLM companies will have to register with the government. 

So far the government has been unable to probe companies registered aboard. Sources say societies and trusts will need to register for overseas fund transfers.

The Serious Fraud Investigation Office (SFIO) has submitted its analysis on the MLM companies to MCA. According to the SFIO report most MLM companies operate via agents.

The much talked about Speak Asia controversy had promoted the SFIO analysis.[Read on: MCA orders probe into Speak Asia ]

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