Sterner Bihar law to rein in ponzi firms
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The Bihar government is bringing in a fresh amendment to the Bihar protection of the interest of Depositors (In monetary institutions) (amendment) Act, 2013, to rein in and facilitate closer monitoring of non-banking monetary establishments and chit fund businesses operating in the country.

The change to the existing regulation may be added in for the duration of the continuing finances session of the kingdom legislature.

The new modification will provide for greater powers to the police to research and initiate movement towards unscrupulous firms collecting and misappropriating money from contributors of the public. The modification invoice may be moved at the state meeting on March 29.

The new change additionally purports to rein in the one's chit fund corporations and para banking firms which can be operating within the state without right license and approval of the authorities our bodies worried, along with the Reserve bank of India (RBI) and Securities and exchange Board of India (SEBI).

The amendment takes its cue from the Sarada chit fund rip-off in West Bengal wherein a consortium of approximately two hundred personal businesses accrued approximately Rs 2,500 crore from 1.7 million traders earlier than the scheme collapsed. It comes after several fly-by using-night time companies duped lakhs of traders in Bihar in a comparable style.

“The new modification will facilitate quicker investigation against such corporations as working in a clandestine manner to dupe human beings of their tough earned money by using promising them excessive returns,” stated a senior officer of the finance department.

The country authorities had first amended the unique act in 2013, to include a new clause in which it turned into made it obligatory for any financial organisation to provide info on its operations, vicinity and license from RBI and SEBI to the in a position authority, in most cases district magistrates.

At that point too, more powers had been given to the police for wearing out investigations into such cases.

The modifications were delivered in to avoid the mushroom boom of Ponzi corporations in the country and defend traders from falling into the trap of unscrupulous economic companies because it happened in West Bengal, in which lakhs of traders were duped by large chit fund groups.

 
 


 
 


 
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