Odisha to seek SEBI, RBI help against investment frauds

Bhubaneswar: In an effort to curb unauthorised chit fund activities of fraudulent financial establishments, the State government on Monday decided to seek the help of market regulator Securities and Exchange Board of India (SEBI) and Reserve Bank of India (RBI).

While plans are there to involve the SEBI and RBI officials on deputation to help prevent the progress of these non-banking finance companies (NBFCs) and unincorporated bodies (UIBs) in state, it wants to strengthen the Economic Offences Wing (EOW) of the Crime Branch as well.

“Looking at the gravity of the recent chit fund cases, we will definitely request the Centre to accord sanction for the deputation of SEBI and RBI officials to help our concerned departments,” Development Commissioner JK Mohapatra said after a high-level meeting with officials of CB, RBI, SEBI and Finance.

According to the official, the State government would take steps against any such companies in consultation with these officials.

“Besides, since the purview of the Crime Branch is expanding day by day with the surfacing of variety of cases, we need to strengthen it,” added Mohapatra.

Similarly it would expedite the process to approve Orissa Protection of Interests of Depositors (In Financial Establishment) Bill, which was passed in State Assembly in December 2011 and sent to the Centre for President’s approval in April last year.
 
The Bill aims at protecting the interest of depositors in NBFCs and deposit acceptance activities of UIBs.

Kolkata-based Saradha group which is believed to have wiped out Rs 20,000 crores of depositors’ money, is estimated to have collected Rs 50 and Rs 15 crore from gullible investors in Balasore and Puri alone, respectively.