Par panel to submit report on ponzi schemes in Monsoon session

A Parliamentary panel looking into chit funds and ponzi schemes in the backdrop of Saradha scam in West Bengal, will give its recommendations on preventing recurrence of such incidents to Parliament in the forthcoming Monsoon session.

"We have completed deliberations on the ponzi schemes and will submit our recommendations to Parliament in the next Monsoon session," a member of the Parliamentary Standing Committee on Finance said after the meeting.

The panel heard the views of the SEBI Chairman U K Sinha on various measures required to check misuse collective investment schemes by unscrupulous businessmen.

Besides Sinha, a delegation of All India Chit Fund Association represented its point of view before the committee which is headed by the former finance minister and senior BJP leader Yashwant Sinha.

The panel had also begun examining the issue in presence of top officials of finance ministry and corporate affairs ministry and representatives of SEBI, RBI, Enforcement Directorate and Central Board of Direct Taxes (CBDT) on May 17.

It had also asked the Finance Ministry to submit a written reply to the various concerns raised by the member of the committee.

The panel also heard separately, RBI Governor D Subbarao, last Friday on the various issues related to the ponzi schemes.

Some of the Members of the committee had earlier pressed for a blanket ban on investment schemes promising unreasonable returns and demanded enactment of a law to have a single regulator to deal with all kinds of chit funds.