Any scheme or arrangement made or offered by any company under which the contributions, or payments made by the investors, are pooled and utilized with a view to receive profits, income, produce or property, and is managed on behalf of the investors is a CIS. Investors do not have day to day control over the management and operation of such scheme or arrangement.
Source - http://www.sebi.gov.in/faq/cis_faq.html
Recently SEBI came cracking down on a company called PACL (Pearl Agrotech Corporation) for its involvement in a large-scale illicit money pooling scheme. PACL raised Rs 44,376 Cr through Collective Investment Schemes. SEBI on Aug 23rd ordered the company and its promoters to refund over Rs 44,376 crore that it collected until March 2012.
Read more at http://indianexpress.com/article/business/business-others/sebi-tells-pacl-to-refund-over-r44k-crore-in-three-months/
In what appears to be a similar case to that of PACL a few months ago SEBI had also cracked down on Sahara India for its fraudulent CIS Scheme, which ultimately led to its chief Subrata Roy's arrest.
Read more at http://www.firstpost.com/india/how-sahara-has-run-circles-around-rbi-sebi-supreme-court-1412263.html
This word is suggested by Prakash Philip Zacharia (PGDM 2013-15)