How to Save People from Chit fund Companies?

What the investor should do?

• Control your greed: Chit fund companies might promise you to give more return than in usual investment options in general. Do not get attracted to this and avoid this kind of promise and offer always.
• Check always profile and status of the companies: When somebody approach to you for investment and you want to invest in this kind of companies. First get all the details information about the company- registration, licence, approval for the collection of deposit from all concerned authorities like- Reserve Bank of India, SEBI, IRDA, Indian Companies Act etc.
• Be aware : Always have updated knowledge about the happening s in the environment. Get some information about SEBI,IRDA, RBI, Comanies Act, etc which would help you about knowing your rights and investment schemes which are safe for investment decision.

What the media should do?

• The news paper, TV channel  before accepting any advertisement should verify the  profile and status of the companies. Without proper valid documents of the companies they should not publish/telecast any advertisement of the companies. Because it is the responsibility and moral duty of the media to inform the public about these companies background. Secondly they are in better position and equipped to do this as compared to the public themselves. Majority of the public believe and make wrong assumption about the companies when they see big advertisement in the newspaper and the TV channel. 

What the Govt should do?

• The Govt should  make a Special cell for monitoring the activities of financial companies in the state as well as central level which would look after the monitoring activities of the companies in a very micro level. 
• The Govt should make the staff of some department very skilled enough to check the activities of the NBFCs/Chit Fund companies. Specially the Police and the bank staffs. These are two key role players which may have the information about the NBFCs or chit Funds. The police from top to bottom must be in a position to know what is a company, what is a Chit fund company, what is NBFCs, What are the activities could be carried out by the NBFCs, Who are the regulatory authorities, what are the guidelines.
• The Govt should also try to conduct some awareness program at villages, small towns about the investment alternatives . Where should they invest and where should not. 

Role of other parties:

• Anybody who knows anything about the NBFCs or Chit funds  see  that people are being cheated or mislead by the companies in their locality should try to stop the activities by informing the local authorities or media people immediately so that the people could be save from the worst situation.  

AGAIN   FOLLOWING ' PREVENTION IS BETTER THAN CURE'  IF THE ABOVE STEPS ARE CARRIED OUT BY ALL PARTIES OF THE SOCIETY HOPE TO SOME EXTENT WE WOULD BE ABLE TO  SAVE THE PEOPLE FROM THE CHIT FUND COMPANIES.

'BE AWARE  KEEP AWAY THE CHIT FUNDS'