Fraudulent Investment Operations

An Inter-Ministerial Group (IMG) was constituted on 1st May, 2013 under the Chairmanship of Additional Secretary, (Financial Services) in the Department of Financial Services, Ministry of Finance for proper enforcement of regulatory framework for Non-Banking Finance Companies (NBFCs) and companies running Collective Investment Schemes (CIS) and also to suggest a coordinated approach so that the problem of unauthorized collection of deposit or money by entities is addressed. The task of the Group was to address issues for re-evaluating the regulatory framework for Multi-level Marketing Companies, Non-Banking Financial Companies and companies running Collective Investment Schemes and for safeguarding against non-recurrence of events where unregistered entities defalcate the moneis collected by these entities.

This was stated by Minister of State for Finance, Shri Namo Narain Meena, in written reply to a question in the Lok Sabha today.