State To Collaborate Closely With RBI, SEBI And Other Regulators To Flush Out Fraudulent Financial Companies
Chief Secretary Instructs Eow Wing, Punjab Police To Work Closely With Regulators To Weed Out Unscrupulous Financial Companies
5 Dariya News
Chandigarh 03-Nov-2016
State shall coordinate closely with RBI, SEBI, ICAI and other regulatory and enforcement agencies to check the activities of delinquent Non-Banking Financial Companies and Unincorporated Bodies, engaged in unauthorized collection of deposits from the public. This was discussed in the State Level Coordination Committee (SLCC) meeting on the working of Non-Banking Financial Companies, convened by the Reserve Bank of India and held under the chairmanship of Mr. Sarvesh Kaushal, Chief Secretary Punjab. State Level Coordination Committee (SLCC) is the joint forum formed in all States to facilitate information sharing among the Regulators viz. RBI,SEBI, IRDA,NHB, PFRDA, Registrar of Companies (RoCs) etc. and Enforcement Agencies of the States viz Home Department, Finance Department, Law Department, Economic Offences Wing (EOW) etc., with the objective to control the incidents of unauthorized acceptance of deposits by unscrupulous entities.Sh. Nirmal Chand, Regional Director RBI stated that in year 2016 as part of RBI’s supervisory action, Prohibitory Orders have been issued to Mitter Finance Company, Virk Hire Purchase Jalandhar; Show Cause Notices have been issued to SCF Finance Ludhiana, Deep Finance, Deep Motors Finance, Moga Finance Ltd, Sukhbans Finance Company.
Cancellation orders have been issued to Skylark Deposit & Advances Limited, Royal Moga Hire Purchase Limited, Vishwakarma Strips and Investments. He further stated that complaints are being lodged immediately by RBI to Punjab police for any incident involving unauthorized acceptance of deposits by unscrupulous entities. Chief Secretary instructed the Department of Police to register cases immediately and start legal proceedings when the complaints of RBI are received and verified.RBI regional director further stated that in order to make the process of registration of new NBFCs smoother and hassle free, the application forms and checklist of documents have been simplified and the number of documents for applications has been reduced from 45 to 7-8 documents. He further informed the SLCC that RBI has organized a one day training programme to understand Financial Regulatory Framework and Legal Environment for young IAS/IPS officers. SBI had organized a regional seminar for investors for spreading awareness of regulation and financial matters. RBI has also conducted 65 joint awareness programmes in the State of Punjab. Chief Secretary while appreciating the effort of RBI, asked RBI and other regulators to spread awareness among citizens and improve the financial literacy of the people of the State. He also stressed upon the need to train State Government officials on various financial matters and asked all regulators to conduct training programmes at MGSIPA Chandigarh. SEBI shall conduct awareness campaigns and shall sent SMSes to caution the citizens of the State about unsafe investments.
Live Demonstration of the RBI initiative Sachet was shown to the chief Secretary Punjab. Sachet is a website from which the members of public would be able to obtain information regarding entities that are allowed to accept deposits, lodge complaints and also share information regarding illegal acceptance of deposits by unscrupulous entities. The website would also help enhance coordination among regulators and State Government agencies and thus be useful in curbing instances of unauthorized acceptance of deposits by unscrupulous entities. Chief Secretary while stressing upon the need of usage of technology asked all members to spread awareness about the SLCC website and also asked State Police Department to start online FIRs from all police stations and digitize all historic police records by December 2016.The Committee also underscored the need for creating greater awareness among the people and urged RBI and SEBI to launch financial literacy and investor awareness programmes in the state including imparting basic knowledge of financial planning to the students. On training Police Investigating Officers to deal with cases related to financial fraud, the Committee called for better liaison between the Police, RBI and SEBI so that more investigating officers are trained in the field. Chief Secretary also called for conducting regular seminars and training programmes for police officers for which he asked RBI to develop special capsule course.The meeting was attended by Mr. Nirmal Chand, Regional Director RBI, Mr. A S Miglani, Registrar of Cooperative Societies, Sh. Sukhwinder Singh, Special Secretary cum director (Institutional Finance & Banking), Mr. Vijayant Verma, DGM SEBI, Mr. Vishal Goyal, DGM NHB, Mr. Santosh Kumar, Registrar RoC Chandigarh and other officials of the concerned departments.