Amid lakhs of investors believed to have been defrauded by Ponzi schemes in West Bengal,Sebi Chairman U K sinha today 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 the Securities and Exchange Board of India (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 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.