Mumbai : Market regulator Sebi made it compulsory for all investments into CIS (Collective Investment Scheme) funds to be made through banking channels, and not in cash, to thwart any money laundering through such schemes.
The new norms would also help improve transparency in fund-garnering activities through CIS activities and would make it easier to identify the source of funds and real investors involved in such schemes.
A large number of cases have come to light where gullible investors have been defrauded through illegal CIS activities, while their operators claim to have returned the money when caught by regulators and law enforcement agencies.
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