There should be a centralised regulatory mechanism and a mandatory registration process for all direct selling entities operating in the country, a study by Indian Institute of Corporate Affairs (IICA) says. The IICA works under the aegis of India’s Ministry of Corporate Affairs.
The whitepaper on regulation of direct selling in India, called for setting up of a centralised regulatory mechanism to redress the regulatory uncertainty existing in the country.
It also recommended a mandatory registration process for all such entities in the country, on the lines of the mandatory SEBI registration for all schemes soliciting investments.
“Registration for players in the direct selling industry should be done through the proposed central regulatory body for the industry,” it said.
The study also called for drafting clear definition of direct selling “so that law enforcement agencies could easily differentiate