Ponzi menace: Govt mulls law to plug regulatory gapshttps://indianexpress.com/article/news-archive/web/ponzi-menace-govt-mulls-law-to-plug-regulatory-gaps/

Ponzi menace: Govt mulls law to plug regulatory gaps

Concerned over the rising menace of ponzi schemes,the government plans to bring in a new law to remove regulatory gaps

Concerned over the rising menace of ponzi schemes,the government plans to bring in a new law to remove regulatory gaps in this regard,finance minister P Chidambaram said.

“We are considering a law to fill the regulatory gap… We are trying to see that people do not take advantage of the regulatory gaps,” he said.

The minister said that it as presently possible for the companies to set up their illicit investment schemes in such as way so that they can avoid oversight by either of the regulators or the government departments.

“Right now,its possible to design your company in such a manner and carry on your business in a way that you do not classify as an NBFC,a chit fund,or any other regulated entity,” Chidambaram told PTI.

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“These are regulatory gaps and what we are trying to do is to reduce these gaps to maximum possible extent,so that everyone falls either under the RBI,or Sebi,or the Registrar of Chits or under the state government,etc,” he said.

FM to leave for 4-day US tour today

At a time when the government is trying to attract foreign investments into the country,finance minister P Chidambaram will embark on a four day tour to the US on Monday.

The minister is scheduled to hold one-on-one meeting with his US counterpart and US Treasury Secretary Jacob Lew in Washington DC on Tuesday.

Besides,he will address the US India Business Council on July 11 and also meet US business leaders including Microsoft’s General Counsel and Executive Vice President Brad Smith,chief executive officer Lockheed Martin International Pat Dewar,CEO (Asia) of Walmart Scott Price,CEO of ILFC Henri Croupon,and Boeing International president Sheperd W Hill.