Parl panel to gather public views on collective invst schemes

Amid rising instances of fraudulent money pooling activities duping investors, a high-level Parliamentary panel has sought views from the public on the efficacy of regulations governing collective investment schemes.
The Parliamentary Committee on Finance, chaired by senior Congress leader Veerappa Moily, is deliberating on 'Efficacy of Regulation of Collective Investment Schemes, Chit Funds' etc.
In recent times, many instances of people getting defrauded by ponzi or fraudulent investment schemes have come to light. The CBI is probing the Saradha scam in which thousands of crores of rupees of gullible investors were allegedly swindled.
Considering its importance, the panel has decided to "invite memoranda containing views/suggestions from stakeholders/ individuals/experts/institutions/organisations interested in the subject," said a public notice.

During its meeting on September 18, the committee members had asked RBI, Sebi and the government about the steps being taken to prevent fraudulent money-pooling activities.
Members of the panel include former Prime Minister Manmohan Singh.

"The memoranda submitted to the committee would form part of the records of the committee and would be treated as confidential and would enjoy privileges of the committee," the notice said.
Following the Saradha scam, wherein lakhs of investors in West Bengal and neighbouring states were allegedly defrauded, various agencies as well as central and state governments have taken steps to curb the ponzi menace.

The Serious Fraud Investigation Office (SFIO) has submitted its final investigation report to the government, which may soon start prosecution proceedings for numerous serious violations found during investigations.
SFIO probe was ordered by the Corporate Affairs Ministry in April 2013.