Sebi says working hard to protect investors from ponzi schemes
The regulator is working hard to ensure that small investors’ savings are not put to risk, says Sebi chief U.K Sinha
Sebi has already passed an order against Saradha Realty India to close all its collective schemes and refund the money collected from investors within three months. Photo: Abhijit Bhatlekar/Mint
New Delhi: With lakhs of investors getting
defrauded by Ponzi schemes in West Bengal, Securities and Exchange Board
of India (Sebi) chairman U.K Sinha on Wednesday said the regulator is working hard to ensure that small investors’ savings are not put to risk.
“Within the powers given to us, Sebi is working extremely
hard to ensure that savings of small investors are not put to risk,”
Sinha said.
He, however, said that Sebi has some legal limitations
and he would not be able to comment on specific issues concerning
specific companies as there have been some court and quasi-judicial
orders as well in certain cases.
“I’ll however like to assure you all that we are alive to the task given to us within our mandate,” he added.
He was replying to queries about an alleged fraud by
Kolkata-based Saradha group through its investment schemes. Sinha was
speaking at a public seminar here of the Asia-Pacific Region Committee
of IOSCO, a global body of securities regulators from across the world
of which Sebi is also a member.
The government is seriously considering strengthening of
laws to regulate all kind of collective investment schemes (CIS), Sinha
said. Sebi has already passed an order against Saradha Realty India to
close all its collective schemes and refund the money collected from
investors within three months.
The capital market regulator has also barred Saradha
Realty India and its managing director Sudipta Sen from the securities
markets till the time it winds up all its CIS and refunds the entire
money to investors.
No comments:
Post a Comment