UK Sinha Under-rates Their Size and Influence
Sucheta Dalal
SEBI chairman UK Sinha’s most forthright public speech in recent times has to be commended for one fact—he has taken ownership for the regulation of collective investment schemes (CIS) by SEBI. “The audacity and frequency with which it (illegitimate money collection) is happening is worrying and something all of us must take note of,” he said at a recent public meeting and estimated that over Rs10,000 crore has been raised through such ‘grey’ market schemes. Many of these CISs are Ponzi schemes which lure people by offering extraordinary returns and encouraging them to rope in new members.