August 12, 2013 9:25 PM

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Sebi declares illegal money pooling as fraudulent

To curb rising instances of public getting defrauded by money pooling schemes, capital market regulator Securities and Exchange Board of India, SEBI on Monday decided to declare illegal mobilisation of funds as a fraudulent and unfair trade practice.The decisions were taken by the Sebi board during its meeting in Mumbai on Monday.Following the SEBI's decision, all activities of money mobilisation through unauthorised Collective Investment Schemes would face stronger penalties.

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