Under Section 10(2) of the Banning of Unregulated Deposit Schemes Act, 2019, the Competent Authority…
Section 10(2) lets the Competent Authority act where it has "reason to believe" that deposits are being solicited or accepted pursuant to an Unregulated Deposit Scheme.…
Choose your answer
Under Section 10(2) of the Banning of Unregulated Deposit Schemes Act, 2019, the Competent Authority may act when it has reason to believe that:
Answer and explanation
Correct answer A
Section 10(2) lets the Competent Authority act where it has "reason to believe" that deposits are being solicited or accepted pursuant to an Unregulated Deposit Scheme. Deposits under a scheme listed in the First Schedule are regulated and do not trigger the power, nor do a civil suit or unpaid taxes.