there are several Private and Public Limited Companies which are inviting public to invest into various schemes under which either they get double the amount of thier invst within 5 years and triple within 9 years. also, there are Companies which lure investors by asking penny amount of investment say 5000 or 6000 which makes them eligible for purchase of Gold Jewelery worth Rs.50000/-. i can name some companies like:
Royal Twinkle Star Club Limited Abhinav Gold International Marketing Private Limited.
my question is, can Companies not registered with RBI or as NBFC, can carry on such type of business? if yes, what is the autenticity of their business?
can a public or private limited companies invite people through these schemes?
lakhs of people are overwhelmingly investing into such scheme of this Companies, if they lose their money where should they go for Complaints ? who besides ROC, MCA regulates their business?
14 March 2011
they are thieves,pvt ltd companies are restricted from accepting public deposits, registering as nbfc is compulsory to carry on such business, but truth is such thing do flourish under the nose of the regulators, once duped money is gone,what can rbi, mca do to such entitys? penalties, terms, fines... but about the moneys of investor. its better to keep away from such fools,such schemes r always privately circularised thanks, best question asked, hope more views..
14 March 2011
hi that is true that such companies need to be regulated strictly and not only by ROC but other forums can take sue moto action against them or we under Public interest litigation can file case against them.
15 March 2011
thanx Ravikant and Jignesh! i hope and expect some more clarifications...
i understand that there are lakhs of people invested into small schemes run by these companies...definately it might have gone to some regualtors too...why not any action has been taken till date?
it cannot happen that ROC has got no knowledge of this matter...i still feel that this Companies are taking shelter under some loopholes of Company Law and running these business...and i am keen to know what provision of law permits them ...
CAclubindia
