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Bengal expresses concern

Calcutta, July 24: Bengal consumer affairs minister Sadhan Pande today expressed concern over the mushrooming of chit funds in the state.

“A lot of unlisted companies have grown in the state. A lot of money is also being raised from the public. There should be some guidelines in terms of trustees (or owners) of such companies. For listed companies, the Securities and Exchange Board of India is there. But there is no regulator for unlisted companies,” he said at a seminar organised by the Merchants’ Chamber of Commerce here today.

Referring to this as a bad phenomenon, Pande said he was requesting Union corporate affairs minister Veerappa Moily to tighten restrictions on such companies. “Without regulations, common men will get hurt and they should be protected,” he said.

Sebi had banned companies such as Rose Valley and MPS Greenery Developers from accepting deposits from the public.

The RBI cannot intervene and stop these companies from raising money from the public because it doesn’t fall within the purview of “public deposits”, an RBI official said.

 
 
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