The Ministry of Corporate Affairs plans to start gathering "primary data" from persons who have put in their money in chit funds and deposit-taking schemes, an official said April 23, amid continuing efforts to clamp down on illicit fundraising activities.
The Investor Education and Protection Fund (IEPF) Authority, under the ministry, would seek information from investors, including proof of investment and identity details.
A mobile application, as well as an online platform for investors who have put in their money in deposit-taking schemes and chit funds would be introduced early next month. This is aimed at collecting "primary data" from the investors, the official said.
Investors who have pending dues even after maturity period of their investments have been completed, before January 2019, would be allowed to provide details through the platform, the official added.
Further, the official said that such a system would help in having an understanding about entities taking deposits as well as curb illicit money raising activities.
IEPF Authority, set up under the Companies Act, 2013, primarily focuses on protecting the interest of investors. It also has powers to seek information from companies as well as initiate prosecution proceedings.
In recent times, there have been various instances of investors getting duped by illegal money pooling schemes and authorities have also initiated measures to curb such activities.
On Tuesday, the ministry said that in a major success, the IEPF Authority has been able to enforce Peerless General Finance and Investment Company Ltd to transfer deposits worth about Rs 1,514 crore to IEPF.
"This depositors' money was pending with the company for the last 15 years," it added.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
