Welcoming the Union Finance Minister Arun Jaitley’s announcement about proposed amendment to the Prize Chits and Money Circulation Scheme (Banning) Act, 1978, direct selling company QNET lauded the forthcoming clarifications and called for setting up a regulator to monitor the business.
Jaitley said in his budget speech: “As part of the legislative initiatives under financial sector reforms, it is proposed to bridge the regulatory gap under the Prize Chits and Money Circulation Scheme (Banning) Act, 1978.”
“This step is expected to facilitate effective regulation of companies and entities which have duped a large number of poor and vulnerable people in this country,” Jaitey said.
Appreciating the initiative Zaheer Merchant of QNET’s Corporate Affairs, said that the direct selling business, unfortunately, was being clubbed under the Prize Chits Act due to certain misconceptions.
“The amended Act will hopefully take care of this, clarify the differences and encourage genuine direct selling as opposed to other forms of schemes,” Mr Merchant said.
Direct selling, he said, generates employment, encourages self employment, cuts down marketing and promotional expenses, apart from contributing to the exchequer. The need of the hour, therefore, is to formulate clear cut laws to govern the MLM and direct selling industry in India.
Merchant pointed out that other fast growing economies such as