Comments / Suggestions regarding decriminalization of certain Acts and Sections – Department of Financial Services Proposal dated June 8, 2020

The Economic Affairs Committee at AMCHAM made a representation to the Secretary, Ministry of Corporate Affairs on 26th June 2020, giving suggestions regarding decriminalization of certain Acts and Sections – Department of Financial Services Proposal dated June 8, 2020. The application of The Prize Chits and Money Circulation Schemes (Banning) Act, 1978 (“PCMCS Act”) to the direct selling industry is rather accidental by enforcers and unintended by legislators. This not only harms the growth prospects of this industry which employs many people with a significant employment potential, but also creates a negative image in the mind of existing and potential participants. With the Banning of the Unregulated Deposits Scheme Act, 2019 and the Chit Funds Act, 1982 for the regulation of fraudulent schemes we suggest that the PCMCS Act be decriminalised to ensure ease of doing business and growth of the direct selling industry