Capital market regulator Securities and Exchange Board of India (SEBI) stressed on the need for a single watchdog to regulate firms taking deposits from the public illegally.
“There is need for a single watchdog to regulate companies taking deposits from the public in an illegal manner,” said UK Sinha, chairman, SEBI. “We have also taken up this matter with the government so that loopholes are plugged,” he said at an investment seminar by Indian Merchants’ Chamber.
Sahara group has claimed that it has repaid a bulk of the bondholders and the total outstanding liability is less than Rs. 5,120 crore it has paid to SEBI towards refund.
He questioned the claim of the Sahara group of refunding money to investors. “I need not name it, but there is this company that claims to have returned more than Rs. 20,000 crore to their so-called investors and more than 90% of this refund has been made in cash in the last 3-4 months. I want you to ponder and think how feasible, how credible this story can be.”
Sinha said many countries have only one financial sector regulator. “When the collective investment scheme (CIS) was brought under the SEBI Act, certain exceptions were given to Nidhi, chit funds and cooperatives.
But today certain people are taking advantage of those well-thought-out, well-intentioned exceptions. The purpose of my mentioning the CIS is that the volume now is quite large. So, we all have to work together.”