Collective Investment Schemes


Ajit Kumar AJIT KUMARWISDOM IAS, New Delhi.

Collective Investment Schemes (CIS) refers to any pooling of money more than Rs 100 crore from investors under any scheme or arrangement and which is not registered with market regulator Sebi. Some of the prominent CIS cases are Saradha,Rose Valley, PACL, PGFL and Osian Art Fund.

Till date,only one company — Gift Collective Investment — is registered as CIS with Sebi. Since only one company is registered rest all are considered illegal CIS.


Sebi has banned these companies from collecting investments and directed them to refund investors.

Investors in such schemes are generally stuck with their money,or plot of land or a piece of art or any such promises made by these companies.However, after these orders by Sebi it is unlikely for investors to get back what was promised by the companies because there is no mechanism to ensure every investors interest.

Investors should be careful while giving their money to any company which promises attractive returns. Any person who promises more than 10 to 12% in any form of asset class should raise a flag.

Tuesday, 22nd Mar 2016, 10:03:00 PM

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