Operational part of The Banning of Unregulated Deposit Scheme Ordinance -2019

Operational part of The Banning of Unregulated Deposit Scheme Ordinance -2019

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Operational part of The Banning of Unregulated Deposit Scheme Ordinance -2019

 

Only section 3, 4, 5 & 6 are the operational or main charging provisions which is reproduced for the ease if reference of all the readers: 

CHAPTER II
BANNING OF UNREGULATED DEPOSIT SCHEMES

  1. Banning of Unregulated Deposit Schemes.

On and from the date of commencement of this Ordinance,—

(a) the Unregulated Deposit Schemes shall be banned; and

(b) no deposit taker shall, directly or indirectly, promote, operate, issue any advertisement soliciting participation or enrolment in or accept deposits in pursuance of an Unregulated Deposit Scheme.

  1. Fraudulent default in Regulated Deposit Schemes.

No deposit taker, while accepting deposits pursuant to a Regulated Deposit Scheme, shall commit any fraudulent default in the repayment or return of deposit on maturity or in rendering any specified service promised against such deposit.

  1. Wrongful inducement in relation to 

 Deposit Schemes.

No person by whatever name called shall knowingly make any statement, promise or forecast which is false, deceptive or misleading in material facts or deliberately conceal any material facts, to induce another person to invest in, or become a member or participant of any Unregulated Deposit Scheme.

  1. Certain scheme to be Unregulated Deposit Scheme.

A prize chit or a money circulation scheme banned under the provisions of the Prize Chits and Money Circulation Scheme (Banning) Act, 1978 shall be deemed to be an Unregulated Deposit Scheme under this Ordinance.

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