Saradha fall out: Govt sets up group on companies running collective investment schemes

The group, under the chairmanship of additional secretary, dept of fin services, will also look at level marketing companies, NBFCs

Alarmed by busting of the Saradha Group, the government today set up an inter-ministerial group for proper enforcement of regulatory framework of companies running collective investment schemes.

The group, under the chairmanship of additional secretary, department of financial services, will also look at level marketing companies, non-banking financing companies and hold its first meeting on May 16, an official statement said here.

Besides, the group comprises joint Secretary level officers from the Department of Economic Affairs, Department of Revenue and Ministry of Corporate Affairs, and the Joint Secretary level officers from the Reserve Bank of India (RBI) and Securities and Exchange Board of India (SEBI).

The Group is expected to strengthen the existing coordination mechanisms for regulation and supervision of financial sector, the statement said.  End