There have been many instances wherein gullible investors have been lured into investment schemes that promise higher returns than what is available in the market without much downside risk. Such unregulated investment schemes are called Ponzi schemes and have very high risks. Unregulated deposit schemes are deposit schemes undertaken by individuals, groups of individuals, or a company for business purpose which are not registered under any of the nine regulatory authorities responsible for overseeing all kinds of deposit schemes in India. These schemes usually promise very high returns with little or no risk.
Thousands of investors have lost their hard-earned money in many such unregulated deposit schemes, and this compelled the Government to pass the Banning of Unregulated Deposit Schemes Act in
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