Sebi has ordered CIS firms to discontinue their schemes, repay investors within three months and file a winding-up report. That has not happened even in the case of PACL Ltd, which owes Rs49,100 crore to 58 million investors. Sebi usually acts promptly—in banning the companies, usually on the basis of investor complaints. Sebi typically follows up by initiating recovery proceedings by attaching the bank and demat accounts of promoters and related entities. A draft Banning of Unregulated Deposit Schemes and Protection of Depositors’ Interests bill was floated in April, but nothing has happened since.

Source: Mint October 19, 2016 22:30 UTC