I
n order to ensure healthy capital market environment
in respect of mobilization of funds from public, there
is need to have an eective regulatory and enforcement
mechanism, which ensures adequate protection of the
interests of the depositors. The legal framework is pro-
vided by the Companies Act, RBI Act, SEBI Act and
rules regarding acceptance of public deposits. There are
large numbers of companies and other business entities
indulging in unauthorised/fraudulent mobilization of
public deposits. Such business entities design ingenious
schemes to hide the true nature of their activities to
escape all forms of regulatory regimes.
Normally, small and marginal investors with no aware-
ness about investments, shares, debentures, bonds of list ...