To protect people from ponzi schemes, a Parliamentary panel has suggested framing of a model central law with clear cut definitions to curb illegal money pooling activities done in the garb of direct selling. 
Moreover, it said, the model law needs to define the scope of schemes in “unambiguous and specific terms” as broad definition of ‘money circulation’ has scope for large-scale circumventing by unscrupulous operators. 
There have been rising instances of gullible investors getting cheated by fraudulent investment schemes that mostly offer high returns within a short period of time. 
The Parliamentary Standing Committee on Finance has proposed a “model central law that would be comprehensive and all-encompassing including in its ambit collective investment schemes, chit funds, direct selling schemes and such other activities which are presently permissible but are defined and regulated in

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