GANGTOK, 31 Jan: The State government has taken serious note of the alacrity with which people are being duped by companies floating various dubious schemes which attract investments and then fold up. Recently, [NOW! dated 29 Jan 2013] had detailed how several individuals had recently lost money to such scamsters and how such operations continue to haunt the State and its people. Despite the infamy of such companies as Bharosa and Tina Finlease in which hundreds of people lost lakhs people here continue to be lured by such offers and in the process, continue to be duped.
In this connection, it is informed that the state government recently constituted a committee under the Chief Secretary called the ‘Committee for oversight of un-incorporate bodies in Sikkim”; the purpose of constituting such a committee, it is informed, is to “strengthen the regularity and supervisory cooperation amongst agencies of the central government, state government and the Reserve Bank of India.”
This committee has members from various agencies and includes the DGP, Finance Secretary and the RBI General Manager. The committee was put in place after frequent reports of companies and even un-incorporated bodies raising large sums of money by floating innovative schemes in the “note of pyramid or ponzi schemes and defalcating the money of common people in the name of profitable investment”.
It was noticed by the concerned agencies that individuals and companies were taking advantage of loopholes in the legal provisions and lack of clarity on the role of the different agencies involved.
It is informed that such an initiative of the state government is consistent with the enactment of the Sikkim Protection of Interest of Depositor (In Financial Establishment) Act, 2009 under which rules have also been framed.
The committee has also been tasked with recommending the further course of action to be taken in implementing the Act and its Rules. In this regard, there will be initiation of necessary improvements and even amendments to the Act and Rules as the case may be especially where hindrances in the implementation and enforcement wherever are noticed in order to make it more stringent. An effective mechanism is to be evolved to facilitate exchange of information among the concerned agencies of central and state governments. Any un-regulated activity and dubious entities engaging in the raising of money from the public with a view to defraud the people are to be curbed and prevented.
Other members of the Committee include the Law and UD&HD Secretaries, GM, Non Banking Supervision (RBI), representatives of SEBI and MCA, Government of India and Principal Director, FRED as member secretary.
In this connection, it is informed that the state government recently constituted a committee under the Chief Secretary called the ‘Committee for oversight of un-incorporate bodies in Sikkim”; the purpose of constituting such a committee, it is informed, is to “strengthen the regularity and supervisory cooperation amongst agencies of the central government, state government and the Reserve Bank of India.”
This committee has members from various agencies and includes the DGP, Finance Secretary and the RBI General Manager. The committee was put in place after frequent reports of companies and even un-incorporated bodies raising large sums of money by floating innovative schemes in the “note of pyramid or ponzi schemes and defalcating the money of common people in the name of profitable investment”.
It was noticed by the concerned agencies that individuals and companies were taking advantage of loopholes in the legal provisions and lack of clarity on the role of the different agencies involved.
It is informed that such an initiative of the state government is consistent with the enactment of the Sikkim Protection of Interest of Depositor (In Financial Establishment) Act, 2009 under which rules have also been framed.
The committee has also been tasked with recommending the further course of action to be taken in implementing the Act and its Rules. In this regard, there will be initiation of necessary improvements and even amendments to the Act and Rules as the case may be especially where hindrances in the implementation and enforcement wherever are noticed in order to make it more stringent. An effective mechanism is to be evolved to facilitate exchange of information among the concerned agencies of central and state governments. Any un-regulated activity and dubious entities engaging in the raising of money from the public with a view to defraud the people are to be curbed and prevented.
Other members of the Committee include the Law and UD&HD Secretaries, GM, Non Banking Supervision (RBI), representatives of SEBI and MCA, Government of India and Principal Director, FRED as member secretary.
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