Explanation:

Any scheme or arrangement made or offered by any company under which the contributions, or payments made by the investors, are pooled and utilised with a view to receive profits, income, produce or property, and is managed on behalf of the investors is a Collective Investment Scheme (CIS). Investors will not have day to day control over the management and operation of such scheme or arrangement.

The following schemes do not constitute a collective investment scheme:

• Any scheme or arrangement made or offered by a co-operative society or a society being a society registered or deemed to be registered under any law relating to co-operative societies for the time being in force in any State.
• Any scheme or arrangement under which deposits are accepted by non-banking financial companies
• Any scheme or arrangement being a contract of insurance to which the Insurance Act, applies
• Any scheme or arrangement providing for any Scheme, Pension Scheme or the Insurance Scheme framed under the Employees Provident Fund and Miscellaneous Provisions Act, 1952
• Any scheme or arrangement under which deposits are accepted under section 58A of the Companies Act, 1956 (1 of 1956)
• Any scheme or arrangement under which deposits are accepted by a company declared as a Nidhi or a mutual benefit society under section 620A of the Companies Act, 1956 (1 of 1956)
• Any scheme or arrangement falling within the meaning of Chit business as defined in clause (d) of section 2 of the Chit Fund Act, 1982 (40 of 1982)
• Any scheme or arrangement under which contributions made are in the nature of subscription to a mutual fund