In a concerted effort to flush out fraudulent financial companies, Punjab Government will closely coordinate with the Reserve Bank of India and the Security Exchange Bureau of India (SEBI).
To protect the investors’ interests, the RBI has taken supervisory action on 18 such companies in last two years and has also run public financial awareness campaigns across the State. For the same, RBI would also train Punjab’s IAS and PCS officers on the financial activities or management.
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 State Chief Secretary Sarvesh Kaushal.
The State level Coordination Committee has been formed to take concerted and coordinated action with the 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 the RBI that supervisory action has been taken on 18 companies of the region for non-adherence to the RBI guidelines. The supervisory action includes cancellation of certification of registration of Dignity Motor Finance limited, Ramir Finance and leasing, Sagar Motor Finance, Shubh leasing limited and Punwire Holdings.
It was informed that the prohibitory orders have been issued to Kuldip Finance limited, Mitter Finance Company limited, Skylark Deposits limited, Skylark Motors, Sukhchain Finance, Thakar Investment, Virk Hire Purchase limited.
Further, show cause notices have also been issued to Alchemist Chemicals limited, SCF Finance limited, SRF Hire Purchase limited, Deep Finance limited, Royal Moga Hire limited, among others.
Besides, several activities and programmes including one-day awareness programme on protection of interest of depositors by PBI, training support to deliberate matters pertaining to collective investment schemes by SEBI, a Financial literacy programme, webcast by RBI in collaboration with Institute of Chartered Accountants India (ICAI) on “roles and responsibilities of Auditors of NBFCs” have been organised.
Kaushal 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.
He added that Punjab State Education Board shall also explore option to introduce financial awareness course in the curriculum of schools.
Chief Secretary also directed RBI, SEBI to have regular meetings with concerned Government officials to finalise the investigation reports. He also suggested SEBI to send informative messages to the citizens of the State for public awareness against fraudulent companies.