CNBC-TV18‘s Ronojoy Banerjee, quoting sources, reports that the government has set up an inter-ministerial group to coordinate regulation of the financial sector.
The government has set up its first inter-ministerial group to probe the fallout of the Saradha chit fund scam. The panel will also suggest ways to plug loopholes in the existing laws to prevent the occurrence such scams, reports CNBC-TV18's Ronojoy Banerjee, quoting sources.
This is the first time a coordinated attempt is being made to get to the root of such scams and inter-ministerial group will constitute members the corporate affairs ministry, SEBI, the Reserve Bank of India and officers from the departmental of financial services.
The inter-ministerial group, which is likely to meet by the end of this week, will also discuss coordinated regulation of investment schemes by NBFCs, banks and companies which are now governed by the SEBI Act, the RBI Act and the Companies Act.
Saradha scam refers to a ponzi scheme run by Kolkata based Saradha Group which went bust in April affecting thousands of investors causing multi-crore-rupee losses.
On May 1, financial services secretary Rajiv Takru announced that there was no need of a new law or regulator for chit funds and that a high-powered group would meet every month to regulate chit funds.