Finally, SEBI seems to have woken up to possible thousands of crores invested by consumers in gold savings schemes of jewellers. In these cases, there is no recourse, if the jeweller happens to shut shop. It is time these schemes are regulated to prevent any future scam

Raj Pradhan

Many jewellers offer gold savings scheme wherein you pay specific number of instalments to get bonus added by the jeweller at the end of the period. Gold investment schemes by jewellers have been completely unregulated so far. Even the Income Tax or the Reserve Bank does not bother about these deposit schemes through which investors are earning a fixed income. What will happen if the company or jeweller goes into liquidation or simply vanishes after shutting shop? Securities and Exchange Board of India (SEBI) has come across several such gold savings schemes which have seem sharp increase in recent times. Recent public interest litigation (PIL) questioned the legality of these very gold investment schemes.

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