The involvement of an actor in a Ponzi scheme worth Rs.1,000 crore that duped 2 lakh investors has recently come under intense investigation. A Ponzi scheme is a fraudulent investment operation promising high returns with little risk by using the funds from new investors to pay old ones. The scheme is named after Charles Ponzi, who notoriously operated such a scam in the 1920s.
Understanding Ponzi Schemes And Their Legal Status In India
Ponzi schemes essentially promise high-returns with little to no risk. In reality, they work by continuously recruiting new investors to pay returns to old ones. The entire operation can only sustain as long as new investments keep coming in. The moment recruitment slows down, the scheme crumbles, leaving investors in significant financial loss.
In India, Ponzi Schemes do not fall under the regulatory authority of the Securities and Exchange Board of India (SEBI). However, these unregulated deposit schemes are prohibited under specific legislation designed to protect the public from such fraud. The Banning of Unregulated Deposit Schemes Act, 2019 and the Prize Chit and Money Circulation Schemes (Banning) Act, 1978 are such laws aiming to curb this menace.
RBI’s New Norms On Loan Repayment And Document Return
The Reserve Bank of India (RBI) has issued guidelines to Regulated Entities (banks and NBFCs) for the return of original property documents upon full repayment or settlement of loans. These norms will be effective from 1st December 2023. As per these directives, lenders must establish clear procedures to return original property documents to legal heirs if the borrower passes away.
This directive applies to several types of personal loans, including consumer credit, education loans, housing loans, and loans against financial assets. If original documents are lost or damaged, the lender is responsible for helping the borrower get duplicate or certified copies, bearing the costs and compensating the borrower Rs 5,000 per day for delays exceeding 30 days.
Passing Of Cloning Pioneer Ian Wilmut, The Creator Of Dolly the Sheep
Ian Wilmut, a renowned figure in the world of cloning science known for creating Dolly the Sheep in 1996, passed away recently at the age of 79. The birth of Dolly, the world’s first cloned mammal from an adult cell, caused a worldwide stir by igniting both excitement and apprehension about cloning technology’s future.
This groundbreaking achievement marked the first successful attempt at inducing mature cells to mimic newly fertilized embryo cells, leading to Dolly, a genetically identical animal. Wilmut’s contributions extend well beyond this, paving the path for significant advancements in regenerative medicine.
Inauguration Of ‘National e-Vidhan Application’ By The President Of India
The President of India recently inaugurated the National e-Vidhan Application (NeVA) at the Gujarat Legislative Assembly in Gandhinagar. This digital transformation of legislative houses is a significant step towards bringing speed and transparency into these key democratic institutions.
NeVA is one of the 44 Mission Mode Projects under the Digital India Programme, which aims to digitize all State Legislatures’ functioning. The initiative represents a significant stride towards building a truly Digital India.
