Discuss Indian legislations and provisions to curb Ponzi schemes.

Provisions to curb Ponzi schemes Chit funds in India are governed by the Chit Funds Act, 1982 and other State laws. Under the Act, the Central Government can choose to notify the Act in different states on different dates. States are responsible for notifying rules and have the power to exempt certain chit funds from the provisions of the Act. SEBI (Collective Investment Schemes) Regulation, 1999 provides details of compulsory registration, business activities and obligations, trustees and their obligations, collective investment scheme, general obligations, inspection and audit, etc., of Collective Investment Management Company. Though SEBI's CIS Regulations are in force since 1999, yet till date only one company got its registration with the SEBI. Many other entities are playing and raising crores of Rupees from the public by portraying the rosy pictures in the name/activity of real estate, plantation, teak-wood, mutual investment, etc., but the real motto of such entities behind the curtain is the greed to create their own financial empire. Looking to the increasing number of cases of violations of the CIS Regulations, it is high time to give more powers to the SEBI to arrest such cases at the early stage. SEBI Act made it mandatory for money pooling schemes collecting in excess of ₹100 crore to register with SEBI unless already registered with another regulatory agency and also prescribes penalties where such schemes operate without SEBI registration. The expanded definition of "collective investment scheme" now enables SEBI to curb, control and prevent such schemes. Besides this, most of the States in India have enacted Protection of Interest of Depositors in Financial Establishments Act. Many States have also started State level co-ordination for exchange of information on fraudulent fund raising.