The Security Exchange Board of India (SEBI) has declared war of ponzi schemes in the country. The chit fund scam in West Bengal and suicides of the farmers after that has stunned the nation. The security regulator in India has transferred 20 senior officials from Mumbai to Kolkata for empowering its machinery in Kolkata. The illegal collective investment schemes in state will be investigated by the officials. Money pooling activities are widespread across Bengal. The activities are banned by SEBI. Around 92 companies have raised Rs 2,012 crores through debentures and preference shares. SEBI stopped this by sending orders as this was clear breach of regulatory norms in India. 40 companies are based in West Bengal with the collection of Rs. 500 crore. The total money collected by the companies through such illegal schemes is unknown due to unauthorized market working underground across the state.
Self disclosures by the corporations are the main source of the investigation as of now but regulator will go ahead with deeper investigation now. The real estate business’s blanket has been used to promote similar schemes. 114 firms are being sued by All India Small Depositors’ Association based in Kolkata for collecting money through fake schemes. ICore E services is already banned from on the similar charges. The Kolkalta headquartered company collected funds by issuing securities. Such companies are offering attractive returns to the people and don’t show up at the time of paying the same.
The joint committee consisting of officials from regulatory body and the finance ministry is also finding comprehensive policy framework for the issue.