The Parliamentary Standing Committee on Finance has suggested framing of a model central law to curb illegal money pooling activities done in the garb of direct selling.The law would include 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 a dispersed manner.<br/><br/>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. <br/><br/>Observing that broad definition of 'money circulation' is the main reason for the failure of Prize Chits and Money Circulation (Banning) Act, the panel said there should be clear cut definitions so that prohibited schemes do not operate by camouflaging as legitimate schemes like direct selling.