Centre scanner on illegal financial institutions

The Union corporate affairs ministry has indicated that it is looking into the working of unregistered non-banking financial firms in West Bengal, following a request by the state consumer affairs minister Sadhan Pande.

“We are looking into it, this is not just a case with West Bengal. They will have to go by norms. Have enough guidelines regulations in the country to monitor them,” said Union corporate affairs minister Veerappa Moily, while speaking on the sidelines of a Merchant Chamber of Commerce event.

Earlier on the day, the state consumer affairs minister had asked the Centre to scrutinise the functioning of non-banking financial agencies like chit funds that are raising funds in West Bengal. “For listed companies, you have the Securities and Exchange Board of India (SEBI). But a lot of unlisted companies are working in West Bengal, who are raising funds, without any proper scrutinizing. I request the Centre to come up with some sort of an arrangement to keep a tab on this,” Pande said.

Pande added that it is the political pressure that is halting steps like foreign direct investment in retail, countering his government’s stand. “I would request the chambers’ to enter into more talks political parties regarding this, to make them understand the importance of FDI. Reforms are needed.”

Meanwhile, Moily added that the ministry is working on various measure to reduce the fraudulent practices in corporate sector. Adding that the Indian growth story is going to continue, he said, “For any economy to grow, you need fiscal, process, human resources and governance reforms needed for industry. But after the 1991 fiscal policies, the consecutive governments had to come up with the remaining measures to fast track the growth story.”