22 Outlook Money March 2018 http://www.outlookmoney.com
New Law on the Anvil
to Check Ponzi Schemes
Unsuspecting investors who fall prey to ponzi deposits
and chit funds will soon have a legal safeguard against
such fraudulent schemes.
The government has decided to introduce the
Banning of Unregulated Deposit Schemes Bill,
2018, in Parliament. The Bill proposes stringent
action against offenders who collect money through
unregulated deposits.
“The Bill is aimed at tackling the menace of illicit
deposit-taking activities in the country. Companies,
or institutions, running such schemes exploit existingregulatory gaps and lack of strict administrative
measures to dupe poor and gullible people of their
hard-earned savings,” an official release said.
Under the new law, unregulated deposit-taking
activities will be banned and running of unregulated
deposit schemes, fraudulent default in regulated
deposit schemes and wrongful inducement in
relation to unregulated deposit schemes will be
treated as offences. Punishment and fines will include
attachment of property. The Bill also has provisions
for disgorgement or repayment of deposits in cases
where such schemes manage to raise deposits illegally.
Preeti KulkarniIndians Getting
Wealthier at a Younger
Age: Kotak Wealth
Management Report
Nearly 60 per cent of Ultra High
Networth Individuals (UHNIs) in
India today are under 40 years of
age as against 47 per cent in 2016, a
study conducted by Kotak Wealth
Management states. This implies
that Indians are getting wealthier at
a younger age. Millennials and tech-
savvy UHNIs prefer robo-advisory
services over traditional wealth
management avenues.
The number of Ultra High
Networth Households (UHNHs)
in India increased by 10 per cent to
approximately 160,600 in 2017 – a
compounded annual growth rate
(CAGR) of 12 per cent over the
previous five years, as revealed by
the seventh edition of the wealth
management firm’s Top of the
Pyramid 2017 report. This figure is
expected to double to 3,30,400 by
- Indian UHNHs total networth
was about153 trillion in 2017, which is expected to increase to352 trillion by 2022. The pickup
in the economy, rising markets,
and strong consumption have all
contributed to rising disposable
incomes, which in turn is reflected
in higher allocation towards leisure
and allied activities.
Himali Patel
I
n a bid to curb mis-selling of unit-linked insurance policies (Ulip),
private life insurer IndiaFirst Life has put in place a technology-
based framework to spot such cases and trigger red flags. According
to the company, the alerts get activated after the evaluation of
insurance proposals on the basis of education levels of policyholders,
their annual income, age and so on. As step one, the company makes
calls – termed pre-issuance verification calls (PIVC) – to customers
to ensure that they are aware of product details. Next, the insurer’s
automated grid also identifies ‘potential vulnerable customers’ (PVC)
on the basis of need analysis. “PIVC calls ensure that the customer
is not fooled or mis-sold a policy. The success of implementation of
PIVC and PVC process is validated by a sharp increase of over 10 per
cent in persistency ratio,” says RM Vishakha, MD and CEO, IndiaFirst
Life Insurance.
Preeti KulkarniIndiaFirst Life Insurance
Goes Hi-Tech To Check
Mis-selling
News Roll