High-level IMG looking into functioning of MLM, NBFC, CIS

New Delhi:An Inter-Ministerial Group is looking into the functioning of Multi-Level Marketing firms, NBFCs and Collective Investment Schemes to safeguard investors from unregulated entities, the government today said.

The IMG has been constituted under the chairmanship of Additional Secretary (Financial Services) and has officials from the Reserve Bank and market regulator Sebi.

It has been set up for proper enforcement of regulatory framework for MLM companies, Non-banking Finance Companies and Companies running Collective Investment Schemes (CIS), Minister of Finance Namo Narain Meena said in a written reply to the Rajya Sabha.

The task of the group is to address issues for evaluating the regulatory framework for MLM, NBFC and CIS and for safeguarding against the recurrence of events wherein unregistered/unregulated entities defalcate the monies collected by these entities, Meena said.

As part of the steps to check fraudulent investment schemes, the minister said that state governments have set up State Level Coordination Committee which includes representatives from RBI, MCA and Sebi for information sharing.

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  Posted On: Feb 22, 2014
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