Direct Selling Guidelines, 2016 - An AnalysisRupendra Porwal
There was long demand of Direct Selling Industry(“DSI”) for enactment of an express legislation to distinguish between the direct selling entity engaged in genuine direct selling activities and those entities involved in illegal operation of money circulation schemes in form of Ponzi and/or Pyramid Schemes.
The Government of India, pursuant to reports of Parliament Committee on growing menace of the money circulation schemes under one or more disguised structure, has been mulling to bring effective central legislation for curbing all kinds of Ponzi and/or Pyramid Schemes.
The lack of clear distinction in definitions between/among genuine direct selling entities and entities involved in illegal operation of money circulation schemes created confusion and various state governments arrested officials of direct selling entities under the provisions of Prize Chits and Money Circulation Schemes (Banning) Act, 1978, State’s Depositors Protection Act and Indian Penal Code.
Department of Consumer Affairs (Ministry of Consumer Affairs, Food and Public Distribution, GOI) issued DIRECT SELLING GUIDELINES, 2016, inter-alia, in order to curb the menace of money circulation schemes and to bring uniformity in regulations and control of the DSI in the country.
This presentation will enable the direct selling entities to structure their business in compliance of these guidelines and also enable them to understand the new business module for carrying out direct selling activities.
Embracing the Consumer Duty Imperative: A Comprehensive GuideRNayak3
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With the recent crackdown on Sahara, PACL etc. by SEBI and closure of their business after the Saradha scam have collapsed the trust of small investors and proven to be the tip of the iceberg for deposit taking companies such as Nidhi Companies, Multi-state Credit Co-operative Societies, NBFCs etc. engaged in collection of public deposit. Shall our government ban all these kinds of deposit taking companies from our financial system? What should be the business structure of the deposit taking companies? What are the different aspects which deposit taking companies should be aware before commencing their venture? Does failure to comply with legal compliance can make your business as a ponzi scheme? What are different types of deposit taking companies and their respective regulators along with their licenses/approvals and registration?
Regulators took enforcement actions against over 25 companies in 2015 for deceptive advertising of consumer financial products. The top lessons from these actions were: 1) advertisements must accurately explain the nature of the product; 2) all terms and conditions must be clearly disclosed; 3) advertisements must represent offers that are actually available; 4) companies are responsible for oversight of vendors' advertising; and 5) advertisements cannot obscure their true source.
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
This document outlines the KYC/AML/CFT policy of a bank. It discusses key aspects like money laundering definitions, obligations under relevant acts, customer due diligence procedures, risk categorization of customers, identification of suspicious transactions, and reporting requirements. The objective is to prevent criminal activities like money laundering and terrorist financing through proper monitoring and compliance with regulatory guidelines.
Response to Call for Input on Crowdfunding: BWB ComplianceBWB Compliance
It's been almost two and a half years since the FCA's regime for crowdfunding platforms came into being and now the regulator is starting its review of how well the regime is working. BWB has been very involved with the crowdfunding industry since 2012 and we've given the regulator our feedback. We've worked with 37 investment-based and loan-based platforms and also provide support to the UK Crowdfunding Association.
Back in Limelight-“Saradha chit fund scam brings in focus deficiencies in Financial sector”
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Direct Selling Guidelines, 2016 - An AnalysisRupendra Porwal
There was long demand of Direct Selling Industry(“DSI”) for enactment of an express legislation to distinguish between the direct selling entity engaged in genuine direct selling activities and those entities involved in illegal operation of money circulation schemes in form of Ponzi and/or Pyramid Schemes.
The Government of India, pursuant to reports of Parliament Committee on growing menace of the money circulation schemes under one or more disguised structure, has been mulling to bring effective central legislation for curbing all kinds of Ponzi and/or Pyramid Schemes.
The lack of clear distinction in definitions between/among genuine direct selling entities and entities involved in illegal operation of money circulation schemes created confusion and various state governments arrested officials of direct selling entities under the provisions of Prize Chits and Money Circulation Schemes (Banning) Act, 1978, State’s Depositors Protection Act and Indian Penal Code.
Department of Consumer Affairs (Ministry of Consumer Affairs, Food and Public Distribution, GOI) issued DIRECT SELLING GUIDELINES, 2016, inter-alia, in order to curb the menace of money circulation schemes and to bring uniformity in regulations and control of the DSI in the country.
This presentation will enable the direct selling entities to structure their business in compliance of these guidelines and also enable them to understand the new business module for carrying out direct selling activities.
Embracing the Consumer Duty Imperative: A Comprehensive GuideRNayak3
With the Financial Conduct Authority introducing changes to its Consumer Duty regulations, this paper elucidates the implications and consequences of non-compliance.
With the recent crackdown on Sahara, PACL etc. by SEBI and closure of their business after the Saradha scam have collapsed the trust of small investors and proven to be the tip of the iceberg for deposit taking companies such as Nidhi Companies, Multi-state Credit Co-operative Societies, NBFCs etc. engaged in collection of public deposit. Shall our government ban all these kinds of deposit taking companies from our financial system? What should be the business structure of the deposit taking companies? What are the different aspects which deposit taking companies should be aware before commencing their venture? Does failure to comply with legal compliance can make your business as a ponzi scheme? What are different types of deposit taking companies and their respective regulators along with their licenses/approvals and registration?
Regulators took enforcement actions against over 25 companies in 2015 for deceptive advertising of consumer financial products. The top lessons from these actions were: 1) advertisements must accurately explain the nature of the product; 2) all terms and conditions must be clearly disclosed; 3) advertisements must represent offers that are actually available; 4) companies are responsible for oversight of vendors' advertising; and 5) advertisements cannot obscure their true source.
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
This document outlines the KYC/AML/CFT policy of a bank. It discusses key aspects like money laundering definitions, obligations under relevant acts, customer due diligence procedures, risk categorization of customers, identification of suspicious transactions, and reporting requirements. The objective is to prevent criminal activities like money laundering and terrorist financing through proper monitoring and compliance with regulatory guidelines.
Response to Call for Input on Crowdfunding: BWB ComplianceBWB Compliance
It's been almost two and a half years since the FCA's regime for crowdfunding platforms came into being and now the regulator is starting its review of how well the regime is working. BWB has been very involved with the crowdfunding industry since 2012 and we've given the regulator our feedback. We've worked with 37 investment-based and loan-based platforms and also provide support to the UK Crowdfunding Association.
Back in Limelight-“Saradha chit fund scam brings in focus deficiencies in Financial sector”
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Policy Paper on Promoting Own Account Enterprises (OAEs) - Foundation for MSM...TheBambooLink
We are delighted that this unique Award Programme for “Responsible Indian BMOs” has now successfully entered its fifth year. This year is special, as with the support of the Office of Development Commissioner, Ministry of MSME, we have taken the Award Programme to a new height by organizing “Cluster Conclave and 5th BMO Award: Innovate to Lead”.
Policy Paper on Promoting Own Account Enterprises (OAEs) : Foundation for MSM...TheBambooLink
Micro, Small and Medium Enterprise (MSME) sector is a key player in generating employment and contributing to the India’s GDP and industrial output. There are 6.34 Crore enterprises in various industries, employing close to 11.1 Crore people.1 In all, the MSME sector accounts for 29 percent of India’s GDP and 40 percent of exports.
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1.Law passed
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4. Future strategies
5. Critical analysis
6. conclusion
1. In 2009, Levi's India offered its jeans and other products on an equated monthly installment (EMI) plan as a pilot program in Bangalore to increase sales during an economic downturn.
2. Customers had to spend a minimum of Rs. 1,500 to qualify for the zero-interest financing split over three months. Levi's partnered with ICICI Bank for the program.
3. The program was later expanded to more cities and higher minimum spends, partnering with additional banks. Levi's saw a 10-15% increase in sales from the EMI program.
Below is a list of consumer reporting companies updated for 2019.1 Consumer reporting companies collect information and provide reports to other companies about you. These companies use these reports to inform decisions about providing you with credit, employment, residential rental housing, insurance, and in other decision making situations. The list below includes the three nationwide consumer reporting companies and several other reporting companies that focus on certain market areas and consumer segments. The list gives you tips so you can determine which of these companies may be important to you. It also makes it easier for you to take advantage of your legal rights to (1) obtain the information in your consumer reports, and (2) dispute suspected inaccuracies in your reports with companies as needed.
The financial market felt a significant shake down as the Financial Conduct Authority introduced new payday loan directions for standardizing high cost short term credit. http://www.trueblueloans.co.uk
Open Banking allows consumers and small businesses in the UK to share their financial data with third parties securely and only with their consent. It aims to improve competition and innovation in financial services by enabling these third parties to develop new applications and services using this open banking data. The UK government initiated Open Banking following an investigation that found a need for more competition in retail banking. Now regulated firms can request customers' bank transaction history to provide services like money management tools, account switching, and personalized loans or insurance quotes.
This document discusses regulatory loopholes that allow fraudulent investment schemes to operate in India. It notes that different types of investment schemes are governed by different laws and regulators, which creates gaps that exploitative operators exploit. There is no single regulator for the entire spectrum of investment schemes from non-banking financial companies, banks, and other companies. This, along with other coordination issues between regulators, helps fraudulent schemes take advantage of the system. Many investers are unaware of risks and get drawn into promises of high returns.
This document provides training material on UDAAP (Unfair Deceptive or Abusive Acts & Practices) compliance for FinTech employees. It describes the background and history of UDAAP regulations, explaining that while FinTech companies may not be directly regulated as banks, they are still responsible for UDAAP compliance due to their role in financial services and interactions with customers. The objectives are to help recognize unfair, deceptive or abusive practices and provide steps to avoid UDAAP claims. It also notes that UDAAP applies to both consumer and commercial customers but is enforced differently, and that FinTech companies have a first-line role in UDAAP compliance due to their position between customers and partner banks.
The document provides technical specifications for calculating solvency capital requirements and valuation of assets and liabilities under Solvency II. It notes that some key aspects, such as discount rates for technical provisions, are still under political discussion. The specifications are intended to be used for quantitative testing and are not a complete implementation of Solvency II, as some simplifications are used. The document outlines important principles from IAS 39 on classification and measurement of financial instruments and consistency with Solvency II.
Mergers_ Tool to Survive the Second Wave of Covid19 3.pdfmyLawyerAdvise
One of the main objectives of an entity is GOING CONCERN. Many business organisations shut down as a result of covid due to lack of resources in operating their routine transactions. The most suitable solution for small scale businesses post covid is merger. Mergers will lead to expansion of resources, retention of employment, fund rotation, adequate balance of demand and supply etc. As the firms emerge from the pandemic, mergers would be the best way to come out of the financial stress for small businesses. It will help leaders gain economies of scale or at least the potential to run more efficiently. Once the economy recovers and accelerates out of recession, the small businesses can take advantage of the environment to execute its strategic acquisition agenda and to position the business to exceed industry-average growth. Mergers are a great way to lock down your business and create job opportunities, allowing customers to access your products and services. It will be a mutually beneficial situation
Direct Selling Guidelines 2016 – Regulations for Indian MLM / Network Marketi...Sourav Ghosh & Team
The document provides details about the Direct Selling Guidelines 2016 in India, including a summary of the key points. It discusses:
- The need for official guidelines to distinguish legitimate direct selling companies from illegal pyramid schemes, which had caused confusion.
- A summary of the main guidelines for direct selling companies, such as requiring registration, prohibiting purchase requirements or recruitment-based compensation, and establishing policies around refunds and cooling-off periods.
- A summary of the guidelines for direct sellers, such as requirements to provide accurate information to consumers and obtain prior consent before visits.
- The hope that these guidelines will help legitimate direct selling businesses while curbing illegal schemes, bringing much-needed regulation to the industry
AuthBridge Newsletter Issue 2- Subject Your CXO's to Thorough Background CheckAuthBridge
Employee screening is practically the first step towards strengthening organisational governance, stresses the Executive President- HR of Tata Teleservices Ltd, S. Varadarajan.
For more information visit www.authbridge.com
Ensuring KYC norms are being adhered to and AML controls are strengthened is gathering momentum across the globe. While banks in India up their ante to
address the stink being raised by the revealing reports of Cobrapost, the global landscape is equally scathed with Federal Reserve [UK] and Administración Federal
de Ingresos Públicos (AFIP), the Argentinian federal tax agency raising concerns on the functioning and controls at Citibank and HSBC respectively.
Serious Fraud Investigation Office [SFIO] in the process of setting up a forensic audit laboratory along with revamping its Market Research & Analysis Unit to enable it to function as an intelligence unit. SFIO also has the powers to recommend prosecution in white collar crimes.
This document provides an overview of the key challenges involved in facilitating payments on a platform. It discusses regulatory challenges like anti-money laundering laws, know your customer requirements, and money transmission licenses. It also covers card network compliance requirements regarding payment aggregation, PCI data security standards, and convenience fees. Overall, the document outlines the complex regulatory landscape and technical requirements payment facilitators must navigate.
The average person already has some familiarity with crowdfunding thanks to websites like Kickstarter. This and similar sites let individuals contribute relatively small amounts of money to help new businesses purchase the equipment they need to begin operating. For more information about crowdfunding visit http://www.crowdfundconnect.com
This document summarizes a presentation on shell companies in India. It begins by outlining reasons why regulators are cracking down on shell companies, such as their use for tax evasion, money laundering, and fraudulent schemes. It then defines shell companies as firms that exist on paper without real business operations or assets. Several methods used by shell companies are described, including creating layers of companies to hide owners and conducting fake transactions. The laws often violated by illegal shell companies in India are also listed. Government task forces have been established to investigate shell companies and several actions have been taken, like striking inactive companies from registration records.
- The document discusses foreign direct investment (FDI) in India's e-commerce sector and changes brought by the 2018 Press Note 2.
- Press Note 2 clarified that e-commerce entities cannot control inventory and restricted equity holdings between marketplaces and sellers. It also prohibited exclusivity agreements and mandated compliance certificates.
- The draft National E-commerce Policy proposes a framework for data protection and restrictions on cross-border data flows. It aims to regulate areas like data sharing, definitions, and IP laws.
This document summarizes questions and answers from a webinar on fair lending compliance.
Jerry Miller addresses questions on Regulation B requirements for commercial vs consumer lending, problems that can arise from using proprietary scoring models or FICO scores to decline loans, recommendations for using proxies for HMDA data fields, whether UDAAP applies to commercial lending, issues with charging flat loan processing fees, laws that apply to commercial lending regarding fair housing and lending, HMDA reporting requirements for loan purchases, discretion in pricing commercial loans, and differences between fair banking exams by the OCC vs FDIC.
Slide deck with charts from our Digital News Report 2024, the most comprehensive exploration of news consumption habits around the world, based on survey data from more than 95,000 respondents across 47 countries.
Youngest c m in India- Pema Khandu BiographyVoterMood
Pema Khandu, born on August 21, 1979, is an Indian politician and the Chief Minister of Arunachal Pradesh. He is the son of former Chief Minister of Arunachal Pradesh, Dorjee Khandu. Pema Khandu assumed office as the Chief Minister in July 2016, making him one of the youngest Chief Ministers in India at that time.
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We are delighted that this unique Award Programme for “Responsible Indian BMOs” has now successfully entered its fifth year. This year is special, as with the support of the Office of Development Commissioner, Ministry of MSME, we have taken the Award Programme to a new height by organizing “Cluster Conclave and 5th BMO Award: Innovate to Lead”.
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2. Customers had to spend a minimum of Rs. 1,500 to qualify for the zero-interest financing split over three months. Levi's partnered with ICICI Bank for the program.
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The financial market felt a significant shake down as the Financial Conduct Authority introduced new payday loan directions for standardizing high cost short term credit. http://www.trueblueloans.co.uk
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This document discusses regulatory loopholes that allow fraudulent investment schemes to operate in India. It notes that different types of investment schemes are governed by different laws and regulators, which creates gaps that exploitative operators exploit. There is no single regulator for the entire spectrum of investment schemes from non-banking financial companies, banks, and other companies. This, along with other coordination issues between regulators, helps fraudulent schemes take advantage of the system. Many investers are unaware of risks and get drawn into promises of high returns.
This document provides training material on UDAAP (Unfair Deceptive or Abusive Acts & Practices) compliance for FinTech employees. It describes the background and history of UDAAP regulations, explaining that while FinTech companies may not be directly regulated as banks, they are still responsible for UDAAP compliance due to their role in financial services and interactions with customers. The objectives are to help recognize unfair, deceptive or abusive practices and provide steps to avoid UDAAP claims. It also notes that UDAAP applies to both consumer and commercial customers but is enforced differently, and that FinTech companies have a first-line role in UDAAP compliance due to their position between customers and partner banks.
The document provides technical specifications for calculating solvency capital requirements and valuation of assets and liabilities under Solvency II. It notes that some key aspects, such as discount rates for technical provisions, are still under political discussion. The specifications are intended to be used for quantitative testing and are not a complete implementation of Solvency II, as some simplifications are used. The document outlines important principles from IAS 39 on classification and measurement of financial instruments and consistency with Solvency II.
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The document provides details about the Direct Selling Guidelines 2016 in India, including a summary of the key points. It discusses:
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Illegality of Direct Selling Myth or Truth - indusviva.pdf
1. Illegality of Direct Selling: Myth or Truth
A case study based on the recent allegations on IndusViva
Direct Selling refers to marketing, distribution and sale of goods or providing services
through a network of people. The roots of Direct Selling can be trailed back to the United
States of America, which is known as the ‘Motherland of Direct Selling’. Unfortunately, the
growth and success of this industry led to the development of fraud money circulation
schemes in the name of Direct Selling. Since its inception, the industry has started facing
several issues. It is often mistaken as a money chain or money circulation because there is a
thin line between the two, similar to water and acid. You can’t distinguish if you don’t taste
it. The absence of specific laws and norms to regulate direct selling companies was the
reason behind this misconception. The ordinary people failed to notice the significant
difference between Direct Selling and money circulation; the former compensate the direct
sellers based on the sales volume generated, whereas the latter pays merely based on the
recruitment.
In 1979, one of the pioneering companies in the Direct Selling industry, Amway, was
identified as a legitimate business organization by the US Federal Trade Commission. Still, it
took few decades for this giant to get this clean chit.
During the mid-1990s, the new model of economic reforms known as LPG, Liberalization,
Privatization and Globalization model posed a boon for increasing revenue. In this period,
Direct Selling made its way into the country with global companies like Oriflame, Amway,
Avon, etc., followed by Indian companies, which became industry giants later. However, it
continued to face challenges at every step. Time and again, it became mistaken as
fraudulent Pyramid or Ponzi schemes. With the progress in the Direct Selling industry,
money chain and money circulation schemes started taking birth just like unwanted weeds
in paddy fields. People were lured in the name of quick and easy money, similar to mirages
on a summer afternoon. FICCI, in association with KPMG, studied and highlighted the
following causes due to this ignorance:
• Amendment in the PCMCS Act
• Need to streamline FDI policy
• Need for a clear definition
• Need for a governing legislation
• Need for a nodal ministry
The industry witnessed a revolution by issuing Direct Selling Guidelines 2016 and this new
fiscal restructuring by the then Government of India through the Ministry of Consumer
Affairs, under the ministry of Late Ram Vilas Paswan. It changed the horoscope of the
industry altogether. Consisting of the guiding principles for State Governments to consider
Direct Selling as regular businesses and appointing a monitoring mechanism to prevent any
fraud in the best interests of the people involved in the business or customers was the main
highlight. Following the guidelines, many states involved in this business has appointed a
nodal authority for strict supervision.
2. Direct Selling is a retailing chain for marketing products and services directly to the
consumers or customers, and people involved in this business are called Direct Sellers.
According to Consumer Protection Act 2019, it is a legal, economic activity that helps
entrepreneurs build a business by working self-reliantly with less overhead costs. The Act
also endorses MLM while defining that when a person buys, he becomes a consumer. Multi-
Level Marketing is a kind of direct selling in which a direct seller is paid compensation for
the sales generated and the sales of their direct selling network who they recruit or sponsor
directly or indirectly, referred to as ‘downline’. The term carries a negative image widely,
whereas the Act endorsed it and their network of Direct Sellers. This business has gained
momentum as the Direct Selling industry provides an alternative employment opportunity.
People can enjoy financial freedom by earning a commission from the sale of products or
services. It has paved the way for women empowerment and taken up several CSR
initiatives. As per an existing report, the Indian Direct Selling Market is around INR 72 billion
and is estimated to reach around INR 645 billion by 2025.
Although there is a guideline and most state governments have appointed monitoring
mechanisms, the absence of an exclusive law still led to the discriminatory approach of
people or authority, and they are unable to distinguish between legitimate Multi-level
Marketing companies and fraudulent money circulation schemes. It is hopeful for the
industry that the Ministry of Consumer Affairs (Direct Selling Rules 2021) shall help.
According to Direct Selling Guidelines 2016 (Clause 1.7), a Direct Selling entity is not
engaged in a pyramid scheme that sells or offers to sell goods or services through a direct
seller. In the Guidelines, Clause 1, Sub-clause 11, the first paragraph defines the Pyramid
scheme, and the second paragraph clearly explains how Direct Selling is different from
Pyramid Scheme by laying down few conditions. Even after the clarity provided in the
Guidelines, as mentioned above, misinterpretation by the law enforcement agencies
continued. For example, one of India's leading Direct Selling companies, IndusViva
HealthSciences Private Limited, situated in Bangalore, fell prey to legal issues despite
abiding by all the rules and regulations. After fighting for long, on 26th July 2021, the
Hon’ble High Court of Telangana passed an interim order on the writ petition filed by the
company, guiding to de-freeze all the bank accounts and resume daily operations. Besides,
the court had set away an impugned Preventive Detention order on the prime people of the
company on 27th September 2021. Established in 2014, the company complies with the
Central Direct Selling Guidelines-2016, Telangana State Direct Selling Guidelines2017 and is
registered as per Companies Act-2013. When Kerala Govt. issued their first Multi-level
Marketing guidelines on 14th September 2015, regarding Kerala Finance Bill 2015, according
to Kerala Value Added Tax (KVAT) Act, 2003, which was the first of its kind. IndusViva got
the first registration as per the guidelines mentioned above and the first direct selling
company to be legalized by any state government. It is enlisted in the provisional list of
direct selling entities published by the Ministry of Consumer Affairs after due scrutiny,
hence stands upright as a legal entity. With valid and authorized certifications, IndusViva
conforms with the Consumer Protection Act 2019 and the Direct Selling Guidelines 2016.
3. How DS Guidelines distinguishes the Money Chain? However, the time taken to prove the
legitimacy, many damages already happened to building business and destroyed lakhs of
career. IndusViva and other such companies are getting trapped due to which expert
opinion is required because expertise is lacking on the part of the police. Let’s analyse-
Direct selling guidelines 2016 has differentiated the pyramid scheme based on enrolment
and direct selling (Clause 1, sub-clause 11: a-g).
Provided that the above definition of “Pyramid Scheme” will not apply to a multi-layered
network of subscribers to scheme formed by Direct Selling Entity, which consists of
subscribers enrolling one or more subscribers to receive the benefit, directly or indirectly,
where the benefit is a result of the sale of goods or services by subscribers and the
scheme/financial arrangement complies with all of the following:
a) It has no provision that Direct Sellers will receive remuneration or incentives for the
recruitment/enrolment of new participants.
b) It does not require the participant to purchase goods or services:
i. for an amount that exceeds the amount for which such goods or services can be expected
to be sold or resold to consumers;
ii. for the quantity of goods or services that exceeds an amount which can be expected to be
consumed, or sold or resold to consumers;
c) It does not require participants to pay any entry/registration fee, cost of sales
demonstration equipment and materials or other fees relating to participation;
d) It provides participants with a written contract describing the “material terms” of
participation;
e) It allows or provides for a participant a reasonable cooling-off period to participate or
cancel participation in the scheme and receive a refund of any consideration given to
participate in the operations;
f) It allows or provides for a buy-back or repurchase policy for “currently marketable” goods
or services sold to participants at the request of the participants at reasonable terms;
g) It establishes a grievance redressal mechanism for consumers, more particularly
described in Clause 7 herein.
Verification based on these conditions, it can be concluded that whether a company is a
legitimate Direct Selling/ Multi-level Marketing company or a Ponzi Scheme. In the same
manner, it can be clearly understood that IndusViva HealthSciences Pvt. Ltd. is not a money
circulation scheme.
There are nodal authorities appointed in several states to govern, alert, and monitor the
entire structure just for the namesake. Still, it’s not functioning the way it is expected to do
in specific states like Telangana. Some of the designated departments even refused to
accept companies' undertakings as specified in the Direct Selling Guidelines issued by the
government of the same state. Therefore, there should be a central monitoring authority
with counterparts at the state level, including experts who can distinguish between Direct
Selling/ Multi-level Marketing and Ponzi scheme/ Money circulation schemes. For instance,
there’s IRDA for insurance companies, SEBI for stock exchange.