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The primary reason for the spiralling growth in unauthorised savings schemes promising hefty returns is the gap between customers’ need and the offers being put on the table by various financial companies, said Sebi Chairman U K Sinha. Punishment, in case of any delay on addressing grievances, should be on the roll, he said.
“Aiming restoration of trust levels in financial market, single ‘rule of game’; clarity of law; strict punishment in case of violation and timely grievance redressal mechanism should be on roll” he added.
Recently, many savings schemes have cropped up across the country which thrive on promises of extraordinarily higher returns than any of the existing saving scheme instrument in the market. Earlier this year, Saradha Group got busted which was into similar business.
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Lakhs of investors had to loose their money.
According to him need of the hour was to have innovative products which would serve the section of society who are risking their hard-earned money in illegal saving schemes.
