New Delhi: A high-level panel is working on a way to control Saradha-like illegal investment schemes. The plan will be presented to the government in coming 15 days.
“The roadmap consists of an active role of an existing regulatory body to play a pro-vital role to prevent unethical aspects taking the gullible public for a ride,” a leading government source informed.
The inter-ministerial panel headed by the added secretary (division of financial services), which fulfilled on Friday, is also actively considering the inclusion of quasi-judicial powers to the RBI and SEBI.
The Centre’s job has actually become imperative after reported inaction on the part of government departments to act against such fraud schemes despite lots of cautions and alerts being sent out by the the Intelligence Bureau, Income-Tax department and Financial Intelligence Unit (FIU) among others.
“Among the primary reasons for the insufficient state response was absence of MLM laws. The roadmap will also present to the government, the different ways to and means to close the spaces in the regulatory structure,” the official included.
Besides, the conference also mulled over upon offering quasi-judicial powers to Reserve Bank of India and the capital market regulator SEBI.
Our Take: We have been hearing about such meetings from past three years. These meeting mainly have had happened between RBI, SEBI, Ministry Of Corporate Affairs and Finance Ministry, till date we have not heard about the conclusions of such meetings. In the past IDSA, MoneyLife, FICCI and many other organizations have approached central governments many times to define the laws for MLM companies in India. But central governments in not in hurry. Maybe this time, we see something at the end of this meeting.