A high-level panel is readying a roadmap to regulate Saradha-like fraudulent collective investment schemes. The plan will be submitted to the government in 15 days.
"The roadmap includes an active consideration of an existing central agency playing the regulatory role to prevent unscrupulous elements taking the gullible public for a ride," a top government source told HT.
The inter-ministerial panel headed by the additional secretary (department of financial services), which met on Friday, is also actively considering the inclusion of quasi-judicial powers to the RBI and capital market regulator SEBI.
The Centre's role has become imperative after reported inaction on the part of government agencies and departments to act against such fraud schemes despite many warnings and alerts being sent by the Intelligence Bureau, Income-Tax department and Financial Intelligence Unit (FIU) among others.
"One of the main reasons for the inadequate state response was lack of laws. The roadmap will also present to the government ways and means to close the gaps in the regulatory framework," the official added.
Besides, the meeting also deliberated upon giving quasi-judicial powers to Reserve Bank of India and the capital market regulator SEBI.