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Restoring money lost in fraudulent investment to investors is an area that needs to be looked upon on a priority basis, Corporate Affairs Minister Sachin Pilot said today.
"The priority should be to prevent scams as it is futile to go after the people after the scams. We must have the technology and systems when red-flags go up.
"The priority should be to recover that money when a scam has happened and it is important for us to seize those assets which are ill-gotten," Pilot told reporters on the sidelines of an investor awareness programme here.
He also said with new powers vested with the market regulator Sebi, it can now take action against illegal collective investment schemes.
Pilot also emphasised that Central and states along with regulators like Sebi and RBI should take cohesive action to create a safe and secure investment climate.
Thousands of investors in the country, especially in the Eastern has been duped by companies through ponzi schemes in the recent time.
In this backdrop, Pilot said the Centre, states and regulators are keeping a close eye on these kind of schemes.
He also said the Serious Frauds Investigation Office (SFIO) had launched investigation into 54 such companies and the government would take serious action one the report was submitted to the government.
Referring to the differences of opinion on the definition of 'control' in a company, Pilot said there are different versions of 'control' followed by agencies and the government is in consultation with various agencies to define what 'control' means.
He also said new companies bill would be placed before the Rajya Sabha for approval in the upcoming monsoon session.
On the multi-level marketing schemes, Pilot said that always top 11 per cent make money in these schemes whereas rest 89 per cent in the bottom lose.
Pilot also added that his Ministry has written to Consumer Affairs Minister K V Thomas to define what is right and what is wrong in these multi-level marketing schemes.
