Do's and Don't

• Ensure that the company seeking money/investment/deposit from public is authorised to do so by a regulator like RBI, SEBI etc.
• Deal only with authorised representative of the company seeking investment/deposits.
• NBFCs are specifically permitted by RBI to collect deposits from public and public limited companies can collect deposits from public after satisfying certain conditions.
• Collective investment schemes inviting funds from public promising future delivery of articles such as plot/trees etc. or profile can be launched only by collective investment management companies registered with SEBI.
• Issue of shares, preference shares, debentures by companies is regulated by SEBI .
• Be sure to collect proper receipts of the money deposited /invested with the details of the schemes mentioned thereon.
• Before depositing your hard earned money into any schemes, be sure that payment is from actual business and not from the money collected from new members.
• Ensure that the company seeking money from you is genuine and is doing real business.
• Prior to purchase of land/flat from any private builders/ real estate firm, ensure it’s credential, verify the right, title of the land.

Don’t

• Don’t part with bank account No. /ATM Pin No. /PAN card No. etc over phone to any strangers.
• Unincorporated bodies like individuals, proprietorship and partnership concerns, trusts etc. are prohibited from seeking public deposits.
• Do not get lured by online schemes seeking deposits and promising high returns of gifts
• Never pay in advance in the name of processing fees to receive a future loan.
• No company can offer more than 12.5 % interest on deposits. Promise of higher returns means high risk.