Direct selling company QNET said the new bill banning unregulated deposits will give a boost to the industry, as it gives more clarity on the nature of businesses conduced by DSCs (direct selling companies) and those running ponzi schemes.
"As an industry, we are in a progressive space as the government at the Centre and state levels are making greater efforts to regulate the direct selling ecosystem," Rishi Chandiok, regional director (South Asia), QNET Ltd, said in an interaction here.
The company said the Banning of Unregulated Deposit Schemes Bill, 2019, is a boost to direct selling industry and consumers. The legislation is an integral step in averting any illegal activities, it added.
"We only sell tangible products, there are no asset investments and we do not ask for any financial commitment for anyone to join as a direct seller. We are not a deposit-taking company," Chandiok said.
However, the direct selling industry (DSI) is looking for separate regulations for the DSCs, as it will help bring in more clarity and help boost the business.
The passage of the Bill replaced the Ordinance on the same.
Replying to a debate on the Bill in the Lok Sabha, Minister of State for Finance Anurag Singh Thakur on Wednesday said the Bill is an effort to protect the hard earned money of the poor people.
The Bill is part of the central government's effort to bring back money looted by some high and mighty people, he said during the debate.
QNET is a leading direct selling company, which provides an entrepreneurial opportunity to those who want to become seller of their products.
With more clarity setting in for DSCs in India, product segments like health, wellness and lifestyle are increasingly being represented by direct selling companies, QNET said.
The company is represented by Vihaan Direct Selling, QNET's sub franchise in India.
It operates within the aegis of the law under the Model Direct Selling Guidelines issued by the Ministry of Consumer Affairs in 2016.
The direct selling industry is expected to touch Rs 65,000 crore by year 2025 and generate self-employment for around 2 crore individuals in India, a FICCI-KPMG report said in 2017.
"Delhi as a Union territory is yet to adopt the Direct Selling Guidelines, while 13 States have already adopted the same," Chandiok said.
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