New Delhi: The Lok Sabha on Wednesday passed a bill to protect gullible investors from ponzi schemes, with finance minister Piyush Goyal saying the government will ensure that no loophole is left while framing rules.

The Banning of Unregulated Deposit Schemes Bill, 2018, seeks to put in place a mechanism by which such depositors can be compensated. It has incorporated recommendations of the Standing Committee on Finance.

Replying to a discussion on the Bill, Goyal said out of the total 978 cases of unauthorised deposit schemes, 326 are from West Bengal, which is more than one-third of the total such schemes.

The bill, which was introduced in the House on Tuesday, seeks to plug loopholes that allow ponzi schemes to target small investors.

The Bill was passed on Wednesday — the last day of the budget session — by a voice vote after short discussion.

The government expects the bill to effectively tackle the menace of illicit deposit-taking activities, and prevent such schemes from duping the poor and gullible people of their hard-earned savings.

The bill was initially introduced in Parliament on 18 July 2018 and was referred to the Standing Committee on Finance.

Sudip Bandyopadhyay (TMC) said even though his party supported the bill, but ponzi cases such as Sahara were not being investigated properly.

He also suggested that the government should ban the use of the word 'chit fund'.

This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed

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