Bihar govt to curb chit fund companies

State govt has also urged central government to put in place a "unified regulator" to deal with such companies

To control the haphazard growth of chit fund companies in the state, Bihar government has convened a high level meeting on Thursday. Securities and Exchange Board of India (SEBI) chairman UK Sinha along with senior officials of Reserve Bank of India (RBI) and Registrar of Companies will participate in this meeting.

State government has also urged central government to put in place a "unified regulator" to deal with such companies.

"We have convened a high level meeting on Thursday to deal with such companies," said Deputy Chief Minister of Bihar Sushil Kumar Modi, "senior officials of SEBI, including its chairman UK Sinha along with senior officials of RBI, State Police's Economic Offence Unit (EOU) and Ministry of Corporate Affairs will be present in this meeting.

Our focus is to develop such a mechanism through which investors' interests be protected.

" He said that SEBI and RBI have not given licenses to any chit fund companies to operate in the state, yet several such companies are doing crisp businesses.