RBI, SEBI To Closely Coordinate With Punjab Government To Flush Out Fraudulent Financial Companies

Chandigarh, May 12, 2016: In a concerted effort to flush out fraudulent financial companies, Punjab Government shall closely coordinate with Reserve Bank of India and Security Exchange Bureau of India (SEBI). To protect the interests of investors, Reserve Bank of India has taken supervisory action on 18 such companies in last 2 years and has also run public financial awareness campaigns across the State. IAS/PCS officers of the State shall also be trained on financial activities/management by RBI.
The progress of RBI, SEBI and their coordination with State Government was discussed during the meeting of State Level Coordination Committee of Non-Banking Finance Companies (NBFCs) chaired by Mr.Sarvesh Kaushal, Chief Secretary Punjab. State Level Coordination Committee has been formed to take concerted and coordinated action in coordination with State Government authorities, regulatory agencies, against delinquent entities and Un-incorporated Bodies involved in financial activities and other related issues.
During the meeting, the Chief Secretary was informed by RBI that supervisory action has been taken on 16 companies of the region for non-adherence to the RBI guidelines. The supervisory action included Cancellation of Certification of Registration of Dignity Motor Finance Limited, Ramir Finance & Leasing, Sagar Motor Finance, Shubh Leasing Ltd & Punwire holdings. The prohibitory order has been issued to Kuldip Finance Ltd, Mitter Finance company Ltd, Skylark deposits Ltd, Skylark Motors, Sukhchain Finance, Thakar Investment, Virk Hire Purchase ltd . Further show cause notices have also been issued to Alchemist Chemicals Ltd, SCF Finance Ltd, SRF hire purchase limited, Deep Finance Ltd, Royal Moga hire ltd.
During the meeting, Chief Secretary was also informed that RBI has conducted one day awareness programme on protection of interest of depositors at Maharaja Ranjit Singh Police Academy Phillaur and Police Lines Sangrur and Amritsar. SEBI has also provided the training support to deliberate matters pertaining to collective investment schemes. A Financial Literacy programme was also conducted under the framework of Financial Literacy Architecture for Regional Office Environment – Unified programme at Amritsar. RBI also conducted a webcast in collaboration with Institute of Chartered Accountants India (ICAI) on “roles and responsibilities of Auditors of NBFCs”. Chief Secretary directed the RBI officials to conduct one day programme at Mahatma Gandhi State Institute of Public Administration (MGSIPA) for Punjab Government senior officials and conduct one day programme for IAS/PCS officers of the State at RBI regional headquarters. The Punjab State Education Board shall also explore the option to introduce financial awareness course in the curriculum of schools.
RBI also made a detailed presentation on a website for SLCC members wherein they can share the information with all the SLCC members on a real time basis on a single platform. Chief Secretary directed SLCC members to start using the online platform for information sharing. The status of various complaints being investigated by Economic Offences Wing was discussed in detail during the SLCC meeting.
Chief Secretary directed RBI, SEBI to have regular meetings with concerned Government officials to finalize the investigation reports. Chief Secretary also suggested to SEBI to send informative messages to the citizens of the State for public awareness against fraudulent companies. The progress of implementation of Punjab Crime and Criminal Tracking Network Systems (CCTNS) was also reviewed in detail and Chief Secretary was told that 346 Police Stations of the State are already using CCTNS and FIRs are being registered online. The Police Department was asked to make remaining police stations live on CCTNS including data digitization in next 2 months.
The meeting was attended by Mr. Nirmal Chand, Regional Director RBI, Mr. Anirudh Tewari, Principal Secretary Industries, Mr. Jaspal Singh, Secretary Expenditure, Mr. A S Miglani, Registrar Cooperative Societies, Mrs. Kiran Sharma, RBI Chandigarh and other concerned officials from RBI, SEBI, ICAI and Punjab Government departments.