|
The Securities and Exchange Board of India (Sebi) has asked the government to frame a strong legislation to tackle the menace of companies collecting large amounts of money from the public without regulatory approvals and for dubious investments. The legal provisions are weak and allow such companies to benefit from certain loopholes in the regulatory framework, Sebi Chairman U KSinha said. The market regulator takes action against such entities whenever it suspects there is something wrong. Giving an example, Sinha said he was recently in Assam where he was told that all the mutual funds put together have a combined assets under management of less than Rs.1,000 crore in the state. At the same time, there is a company that launched one scheme and managed to collect more than Rs.1,000 crore, he said, without naming the company. “So if you make the comparison, you will see the dimension is quite big,” he said |
|