Under the Prevention of Money-laundering Act, 2002, "chit fund company" means:
Section 2(1)(h) defines "chit fund company" as "a company managing, conducting or supervising, as foreman, agent or in any other capacity, chits" as defined in the Chit…
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Under the Prevention of Money-laundering Act, 2002, "chit fund company" means:
Answer and explanation
Correct answer C
Section 2(1)(h) defines "chit fund company" as "a company managing, conducting or supervising, as foreman, agent or in any other capacity, chits" as defined in the Chit Funds Act, 1982. Merely subscribing to chits does not make an entity a chit fund company, prize chits are banned outright, and stock-brokers are intermediaries under a different clause.