17 Feb 2020Posted By: Mudit Handa


Banning of Unregulated Deposit Schemes Rules 2020 introduced

The government has taken numerous corrective measures to curb the malpractices and fraudulent activities in our country. With a view to putting an end to all the illicit depository schemes and other such Ponzi schemes, the Banning of Unregulated Deposit Schemes Act, 2019 (BUDS Act 2019) was passed by the Government of India on 31st July 2019

Know about BUDS Act 2019.

The BUDS Ordinance 2019 was made effective from 21st February 2019 itself. However, the BUDS Act was finally promulgated on 31st July 2019

Now, the government has introduced the Banning of Unregulated Deposit Schemes Rules, 2020 in this regard.

Refer to the 

 

1. What are the BUDS Rules 2020?

The Ministry of Finance has notified the Banning of Unregulated Deposit Schemes Rules (BUDS) 2020. It discusses a detailed approach to curb unlawful deposit exercises.

Besides, it also has different provisions associated with:- 

  • Data and points of interest to be considered, 

  • Modes of provisional attachment and 

  • Treatment of the temporarily attached property.


2. What is the key highlight of BUDS Rules?

The main highlight of BUDS rules is that a new term has been coined “competent authority”. 


3. Who is the competent authority here?

Here, the competent authority refers to the power designated by the Central Government u/s 7 of the BUDS Act 2019. Such an authority has indistinguishable powers from vested in a civil court as per the Civil Procedure Code (CPC). These powers are with respect to the examination or inquiry as regards the offenses under the BUDS Act. 


4. What is the role of the competent authority?

The role of the competent authority is to consider all complaints against the promotion or exercising of the Ponzi schemes. This shall be regardless of whether or not the complainant is himself a depositor (i.e. victim) in the Ponzi scheme. 


5. How shall the Ponzi schemes be traced?

The competent authority shall soon introduce a government portal. Here, the general public can refer to the all complete data associated with deposit acceptors.

This will help in tracing of any fraud deposit acceptor.

 

If you want any sort of guidance regarding BUDS 2019 or the process of company formation, you can feel free to contact our business advisor at 8881-069-069.

Now you can also Download E-Startup Mobile App and Never miss the latest updates relating to your business.

Give a Reply

Fill up the form

x
E-startupIndia Mobile App

GET E-STARTUP INDIA IN YOUR
pocket!

Download our free Android App and get realtime update on your order status.
Easily connect with our professionals handling your order over chat & mobile.
Never miss business compliances due date with advance notifications.

Get E-startupIndia in your mobile

Why Choose Us

e-startupindia member of GOOGLE

Serving business owners with an Average 4.8+ Google Rating.

e-startupindia certified #AxixBank

Trusted by Axis bank to cater its clients all licensing & compliance needs.

e-startupindia NG Alliance Partner

Providing lending solutions for business needs with NeoGrowth.

e-startupindia Google Partner

Providing business banking solutions in association with ICICI Bank.

e-startupindia member of CII

E-startupindia is a Proudly Member of Confederation of Indian Industry.The CII is a premier business association in India which works to create an environment.

e-startupindia certified #Etstartupindia

E-Startup India is duly certified under GOI's Startup India scheme and is renowned for our tech-driven solutions for business & legal services requirements for MSMEs.

e-startupindia Google Partner

E-Startup India is a Google Partner, which implies we are rigorously involved in assisting SME businesses to market their presence in the digital world.

IN THE MEDIA

  • e-startupindia South Asia's Leading Multimedia News Agency
  • Business Standard
  • e-startupindia Outlook
  • e-startupindia Htmedia
  • e-startupindia Yahoo News
  • e-startupindia New Delhi Times
  • e-startupindia India.com
  • e-startupindia IBTN9

CONNECT WITH US