State for ‘greater coordination’ against fraudulent financers

State for ‘greater coordination’ against fraudulent financers

SRINAGAR: The State Level Coordination Committee (SLCC) Monday called for “greater coordination” between various institutions and agencies against the fraudulent finance companies operating in the state.
In its 24th meeting held in the state’s winter capital Jammu, the Committee said “greater coordination” is required between Reserve Bank of India (RBI), SEBI, ICAI and other regulatory and enforcement agencies, including police and crime branch, to check “the activities of delinquent Non-Banking Financial Companies and Unincorporated Bodies engaged in unauthorized collection of deposits from the public”.
The meeting was convened by the RBI to discuss the working of Non-Banking Financial Companies and Unincorporated Bodies.
J&K’s Chief Secretary (CS), Iqbal Khandey, chaired the meeting, while Regional Director of RBI, Dambarudhar Sethy, was among other members and officers present in it.
Stating that Jammu and Kashmir has fewer cases related to fraudulent finance companies as compared to the other states of India, Khandey asked for a “structured approach to check any malpractices by fraudulent companies”.
He stressed on the need for putting in place a “better regulatory mechanism” to prevent the public in the state from being robbed of hard-earned money”.
“Law should come down hard on persons found involved in such fraudulent practices,” he said and asked the crime branch to initiate action against the culprits.
Khandey asked the agencies to conduct seminars and training programmes regularly for police officers. He asked RBI to develop “special capsule course” for the purpose.
The SLCC Committee also underscored the need for creating greater awareness among the people, urging RBI and SEBI to launch financial literacy and investor awareness programmes in the state, including imparting basic knowledge of financial planning to the students.
On training Police Investigating Officers to deal with cases related to financial fraud, the Committee called for better liaison between police, RBI and SEBI, “so that more investigating officers are trained in the field”.
The SLCC also asked the state’s Finance Department to provide RBI and SEBI links to its official website that cover FAQs about NBFCs for the benefit and information of the general public.
It also asked the Department to nominate nodal officers under the J&K Protection of Interests of Depositors (in Financial Establishments) Act- 2012.
The Committee also reviewed the action taken in cases against certain delinquent entities that were referred to the Crime Branch by RBI.
It suggested Registrar of Companies (RoC) to personally visit the company offices and confirm the antecedents of the companies and their directors before granting registration to a new company.
He may also take help of the police department for verifications, it suggested.