Like any other approved investment, Chit funds are also fully governed by a central Act called Chit Funds Act, 1982. It’s a detailed Act covering all the aspects of Chit fund transaction for the protection of both the investors(subscribers) and the company (Foreman). Appended below are some of the provisions of the Act to understand the in-depth of the Law.
Chit Funds Act, 1982 (Central Act No 40 of 1982)
Likewise, there are 90 sections in the Act covering all the aspects of the Chits.
We have very good legal frame work in place. Now it is essential for customers to identify a chit company which maintain the highest level of regulatory compliance.
It is highly critical, important and recommended that one should invest in a chit fund only through a trusted company having proven track record and maintain the highest level of ethical standards, best practices, professional integrity, corporate governance and regulatory compliance. Muthoot Pappachan Group with decades of existence & TRUST, is the Ultimate answer.