Mushrooming NBFCs: Punjab govt concerned | chandigarh | Hindustan Times
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Mushrooming NBFCs: Punjab govt concerned

chandigarh Updated: Sep 23, 2014 20:48 IST
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Punjab government

The Punjab government on Tuesday expressed serious concern over mushrooming of unscrupulous NBFCs in the state with an intention of cheating gullible people.

In a meeting held with senior officials of RBI and SEBI, Punjab chief secretary Sarvesh Kaushal emphasized on keeping a close watch on such NBFC's coming up with lucrative schemes to cheat people and also stressed on sensitising public in this regard.

He pointed out that chit fund scam occurred in the eastern part of the country was an eye openers for the financial regulators and the government.

The chief secretary was apprised by RBI officials present in the meeting that RBI was minutely supervising the activities of the registered Non-Banking Financial Companies (NBFC) in the state and was also cancelling the registration certificates of NBFCs where it finds that financial irregularities are committed.

As per RBI data, since 2006 Certificate of Registrations of 19 Category A and 29 Category B NBFCs of the region were cancelled by RBI Chandigarh office for non-compliance of various RBI guidelines.

All such cancellations of Registrations by RBI shall be available in public domain on state government websites for convenience of general public.

Further, SEBI has also provided a list of nine companies to the state government, which are not being operated in accordance with the SEBI guidelines.

The chief secretary assured to initiate appropriate action against these erring companies, said an official release.

Chief secretary informed that the Punjab Cabinet has already approved the Punjab Protection of Interest of Depositors' Bill 2014 and before it is passed by the State Legislature, the draft of the Bill has been forwarded to the RBI and SEBI for comments.

The chief secretary asked RBI and SEBI to provide the comments on this draft in next one month to enable the state government to pass the draft Bill in the State Legislature.

He said the state has already notified additional deputy commissioner (Development) of all the districts as Joint Director, Institutional Finance and Banking.