SMS alerts to caution investors against fraud schemes soon

SMS alerts to caution investors against fraud schemes soon

Corporate Affairs Ministry will soon start sending out SMS alerts asking people to take informed decision before putting in their money in any scheme, a move to sensitise the common man against fraudulent investment schemes.

The plan to send SMS alerts, expected to be ready by end of this month, is part of larger efforts to create awareness among investors amid rising instances of people getting duped by fraudulent investment schemes.

"We are going to provide SMS alerts, which will be small cautionary messages to alert investors about fraudulent and ponzi schemes. We will be providing such alerts through the BSNL network," a senior Ministry official said today.

According to the official, the Ministry would also soon be tapping 'Google' as well as airing messages on All India Radio and Doordarshan, to create more awareness among investors about fraudulent schemes.

"We will finalise a Google package or Google enabled mechanism to spread awareness (among investors) by the end of month," he said.

Campaigns through SMS alerts and Google would continue for about three to four months. The expenditure in this regard is expected to be around Rs 1 crore to start with.

The official noted that digital media would be utilised, especially to caution vulnerable sections like youngsters and pensioners from making investments in fraudulent schemes.

The idea to have SMS alerts and to tap the digital media was mooted by Corporate Affairs Minister Sachin Pilot.

Already, the Ministry is carrying out various investor awareness programmes.

Meanwhile, the ministry is planning to analyse data on unpaid and unclaimed money lying with various companies, besides drawing up a list of entities that are non-compliant with such norms. The proposal is aimed at promoting investor education and awareness for growth of corporate sector in the country.

Also, plans are on the anvil for providing a search facility on MCA 21 - the ministry's key portal for stakeholders - whereby investors can obtain details of prosecution cases pending against a company or director.