CFDs are exempted from deposit insurance under the provisions of Companies (Acceptance of Deposits) Rules, 2015. This severely dents the safety factor of the amount invested with the company, especially when the company winds up due to bankruptcy or reports huge losses. CFDs are categorised as unsecured in their books of accounts, which means that in the event of winding up of the company, the repayment of such CFDs to the investor ranks very low in priority. Most of the CFDs give very limited options – viz. 1 year–3 years under Scheme A (fixed deposit scheme) and 3 years–5 years under Scheme B (cumulative [fixed] deposit); hence investor choices/options to invest for varied periods are limited.