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1Scan for outdated or missing drivers - takes under a minute2Repair Windows errors before they cause bigger problems3Fix the driver behind crashes, sound loss and screen glitches“Collective Action Scheme (CAS)” is not a formal Indian legal category established by the official sources available for this topic. The phrase may refer to either a Collective Investment Scheme (CIS), regulated by SEBI, or a class action under section 245 of the Companies Act, 2013. They are different mechanisms: one concerns pooled investments; the other, collective legal relief.
What does “Collective Action Scheme” mean in India?
The terminology matters because the two likely meanings have different participants, regulators and outcomes. SEBI’s framework uses the term Collective Investment Scheme. Section 245 of the Companies Act is expressly titled “Class action.” Neither should be casually relabelled “CAS” without a source establishing that usage.
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| Question | Collective Investment Scheme (CIS) | Section 245 class action |
|---|---|---|
| Purpose | Pool contributions for an investment arrangement and seek returns, income, produce or property. | Seek collective legal relief over allegedly prejudicial company management or conduct. |
| Who participates? | Investors who contribute to the scheme. | Qualifying company members or depositors, or a class of them. |
| Framework | SEBI’s securities-regulation framework. | Proceedings before the Tribunal under the Companies Act, 2013. |
| Possible result | Returns, income, produce or property, depending on the arrangement; no return is guaranteed. | Orders restraining conduct, declarations about resolutions, or damages or compensation where the section allows. |
How does SEBI identify a Collective Investment Scheme?
Section 11AA of the SEBI Act sets out the central features. In broad terms, an arrangement may be a CIS when a company offers it and:
- investors contribute money or other assets that are pooled and used for the arrangement;
- investors expect profits, income, produce or property from it;
- the property or contributions are managed on investors’ behalf; and
- investors do not have day-to-day control over the management and operation.
The legal test turns on the arrangement’s features, not simply on a product’s marketing label. The Act also excludes specified arrangements, including certain cooperative societies, insurance contracts, pension schemes, chit businesses and mutual-fund subscriptions. See section 11AA of the SEBI Act for the statutory definition and exclusions.
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What does SEBI say about a CIS offer and investor protection?
SEBI’s Collective Investment Schemes FAQ describes safeguards for registered collective investment management companies raising public funds through schemes. These include credit rating, appraisal, trustee approval, prescribed disclosures and filing an offer document with SEBI. The FAQ also describes the investor-facing offer-document process, scheme reporting and grievance routes. Requirements can change, so consult the current regulations and official guidance for a particular scheme.
Filing an offer document is not the same as SEBI approving the investment. SEBI’s FAQ states: “It is to be distinctly understood that submission of offer document to SEBI should not in any way be deemed or construed that the same has been cleared or approved by SEBI.” The FAQ also says SEBI does not take responsibility for the scheme’s financial soundness or the correctness of statements in the document, and cannot guarantee repayment to investors. Read the documents and assess the risks rather than treating a filing as an endorsement.
How does a class action under section 245 work?
Section 245 lets qualifying members or depositors apply to the Tribunal on behalf of members or depositors when they consider a company’s management or conduct prejudicial to the interests of the company, its members or its depositors. It is a route for legal redress, not an investment scheme.
Who may apply?
Eligibility is threshold-based. For a company with share capital, section 245 states that applicants must include at least 100 members or the prescribed percentage of members, whichever is less, or members holding at least the prescribed percentage of issued share capital. For a company without share capital, it states one-fifth of the total members. The section also sets thresholds for depositors and provides that only one class-action application may be made for the same cause.
Because the statute refers to percentages “as may be prescribed,” the applicable rules and amendments matter. The figures above describe the thresholds stated in section 245, not a complete determination of current eligibility for a particular case. Check the current text of the Act and applicable rules before relying on a threshold.
What relief can the Tribunal grant?
Depending on the circumstances listed in the section, an application may seek orders to:
- restrain the company from acts contrary to its memorandum or articles, the law, or a resolution of its members;
- declare certain resolutions void; or
- claim damages or compensation from the company, directors, auditors, experts, advisers or consultants.
The Tribunal considers factors including whether the applicants are acting in good faith. The available relief depends on the claim and the statutory conditions; a class action does not guarantee a particular outcome.
What happens after an application is admitted?
The Act provides for public notice and for similar applications to be consolidated. The class chooses a lead applicant; if it cannot agree, the Tribunal may appoint one. Orders in the proceeding bind the relevant class as provided by the Act. Consult section 245 of the Companies Act, 2013 and the applicable rules for the full procedure.
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Which one do you mean?
- If you are asking whether money pooled for an arrangement is regulated as an investment scheme, the relevant term to check is usually Collective Investment Scheme (CIS) and the relevant regulator is SEBI.
- If you are asking how members or depositors can pursue relief over company conduct as a group, the relevant route may be a section 245 class action before the Tribunal, subject to eligibility and procedure.
For an investment decision or an active company dispute, verify the current official rules and obtain advice from a qualified Indian lawyer where needed. SEBI’s regulations index listed the Collective Investment Scheme Regulations, 1999 as last amended on December 5, 2025; later amendments or applicable rules may change requirements.
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