New Delhi, July 24 (TIWN) A Bill to protect depositors from Ponzi schemes and put in place a mechanism by which the investors can be compensated was passed by the Lok Sabha on Wednesday by voice vote.

The Banning of Unregulated Deposit Schemes Bill, 2019, which would replace the ordinance on the same, seeks to tackle the menace of illicit deposit-taking, being done by exploiting regulatory gaps and due to lack of strict administrative measures.  The Bill also provides for 1-10 years punishment and Rs 2 lakh to Rs 50 crore fines to deter any such act.