Saturday, 31 December 2011

RBI MLM Companies Guideline

RBI MLM Companies Guideline
RBI ( Reserve Bank of India ) have made guideline for MLM ( Multi Level Marketing ) companies for doing business ( financial activities ) in India in Year 2009.

On 17 September 2009 : According a news published in Express India related a article on Reserve Bank of India .
( ) With many MLM companies recently using the banking technology to dupe investors, the RBI said, “banks should be careful in opening accounts of the marketing/trading agencies etc. Especially, strict compliance with KYC (know your customer) and AML (anti-money laundering) guidelines issued by the RBI should be ensured in the matter.”

The banking regulator also named seven MLM companies (Fine India Sales Pvt Ltd, Lakshya Levels Marketing, Eve Industries, Trident Advertising & Trade Links Pvt. Ltd, Super Life Link Distributors, Lue Brain Education Society and Manya Mantra Marketing). “These firms and their agents had reportedly promised very high returns on deposits and lured common people to part with funds in the name of certain investment/deposit schemes,” the RBI said.

 Source :

MLM involves a strategy whereby the sales team earns not only for sales they generate themselves, but also for the sales of others they recruit , creating a cascade of distributors with multiple levels of compensation. MLM has been referred to as pyramid selling, network and referral marketing.

As per extant laws, if any company is desirous of engaging in any business activity , it needs to register itself under the Companies Act, 1956. These companies are then regulated by a regulator or by the state government concerned.

Read :

Marketing Research

MLM Scams

Online Survey Software

In the Below Video Mr.  Pavan Duggal who is also  Known as "father of cyber Laws”, Founder President of Cyberlaw Asia, author of the book entitled “Cyberlaw – The Indian Perspective” : This was trick of MLM Companies saying thing which they don't to say officially they make cloned websites which are not belongs to them and MLM Companies says any thing unofficially on these websites . If Any MLM Company on his official website claiming or promising any thing and if that company will not fulfill its promises a court case can be done against them.

Our Advertisers ( This
Area You can Advertise Also )

Paid Surveys

Fraud Companies

Survey Fraud

Delhi Detectives

web designer in delhi

medical transcription from home

Wedding Planner

Water Level Controller

Delhi Stationery Suppliers


HP Cartridges Delhi


Seo Company


Suppliers in Gurgaon


Post a Comment

Subscribe to Post Comments [Atom]

Links to this post:

Create a Link

<< Home