Demystifying Collective Investment Schemes - Why BetterInvest is 100% Compliant and Safe?

Alternative investing is on the rise, but it also attracts more regulatory scrutiny. At BetterInvest, we embrace transparency and want to address questions investors may have about compliance. Specifically, does BetterInvest qualify as a "Collective Investment Scheme" (CIS) under Indian regulations? Let's demystify this complex topic.

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What Exactly is a Collective Investment Scheme?

A CIS refers to investment arrangements where groups of individuals pool their money and invest it collectively into assets like stocks, bonds, real estate etc. The key aspects are:

• Multiple investors combining funds into a collective pool
• Joint investments into various asset classes
  

SEBI (Securities and Exchange Board of India) provides the regulatory definition of a CIS under Section 11AA of the SEBI Act, 1992. 

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Does BetterInvest's Structure Qualify as a CIS?

At first glance, BetterInvest's model appears similar to a CIS:

• Investors digitally sign agreements to pool funds in an account
• Investors earn returns on their investment when invoices are repaid
• BetterInvest handles operational responsibilities like payments
  

However, on deeper examination, critical differences emerge:

• Investors make their own investment decisions, BetterInvest does not "manage" funds
• BetterInvest only handles logistical responsibilities, no investment choices
  

Because BetterInvest lacks the key ingredient of "management" of investments, it does NOT meet the criteria to qualify as a Collective Investment Scheme.

Therefore, BetterInvest is NOT required to register as a CIS with SEBI, and our structure is fully compliant with regulations. This conclusion is backed by extensive legal opinions from experts.

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A Trusted Platform to Invest Confidently

At BetterInvest, legal and ethical compliance is our foremost priority. We have taken meticulous care to ensure our invoice discounting platform does not qualify as a CIS. Investors can be absolutely confident that BetterInvest is a legitimate, above-board platform.

Our commitment to transparency and integrity has earned us the trust of thousands of investors. 

The rules exist to protect investors - and BetterInvest plays by those rules. We're proud to provide a compliant platform for intelligently growing your hard-earned money.

So rest assured - and invest confidently with BetterInvest today!

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In Conclusion

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Invoice discounting, an alternative investment product, currently operates within an unregulated space in India. While this offers a degree of flexibility, it's important to acknowledge the evolving regulatory landscape and potential investor concerns.

At BetterInvest, we believe responsible regulations are crucial for ensuring investor protection and fostering long-term market stability. That's why we're actively engaged with industry stakeholders and regulatory bodies, advocating for regulations that address these concerns without stifling innovation.

In fact, we're prepared to be at the forefront of compliance with any future regulations introduced by SEBI or RBI for Invoice Discounting. We're committed to upholding the highest standards of transparency and compliance.

While the regulatory framework is still under development, investors can be confident that BetterInvest is diligently navigating this dynamic landscape. We remain focused on providing access to exciting investment opportunities while prioritizing investor safety and responsible market practices.

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