Section 41 of the Banning of Unregulated Deposit Schemes Act, 2019 provides that the Act shall not…
Section 41 excludes deposits taken in the ordinary course of business. A mere advertisement or promise of returns does not by itself determine whether a scheme is…
Choose your answer
Section 41 of the Banning of Unregulated Deposit Schemes Act, 2019 provides that the Act shall not apply to:
Answer and explanation
Correct answer B
Section 41 excludes deposits taken in the ordinary course of business. A mere advertisement or promise of returns does not by itself determine whether a scheme is unregulated or unlawful; the Act's definitions and conditions must be applied. A Ponzi arrangement cannot claim ordinary-business treatment merely by describing itself as a business.