Excelsior Correspondent
JAMMU, Apr 13: The 24th meeting of the State Level Coordination Committee (SLCC) on the working of Non-Banking Financial Companies and Unincorporated Bodies, convened by the Reserve Bank of India was held here today under the chairmanship of Chief Secretary, Iqbal Khandey.
Regional Director, RBI, Dambarudhar Sethy and other members and officers were present in the meeting.
The Committee called for greater coordination between RBI, SEBI, ICAI and other regulatory and enforcement agencies including Police and Crime Branch to check the activities of delinquent Non-Banking Financial Companies and Unincorporated Bodies, engaged in unauthorized collection of deposits from the public.
“Although, as compared to the rest of the country fewer cases of fraudulent finance companies have been reported in Jammu and Kashmir, we shall have to follow structured approach and greater coordination to check such any malpractices by such companies,” Chief Secretary said.
He stressed the need for putting in place a better regulatory mechanism to prevent the public in the State of being robbed of hard earned money.
“Law should come down hard on persons found involved in such fraudulent practices,” he maintained and asked the Crime Branch to initiate action against culprits.
The Committee also underscored the need for creating greater awareness among the people and urged RBI and SEBI to launch financial literacy and investor awareness programmes in the state including imparting basic knowledge of financial planning to the students.
On training Police Investigating Officers to deal with cases related to financial fraud, the Committee called for better liaison between the Police, RBI and SEBI so that more investigating officers are trained in the field.
Khandey also called for conducting regular seminars and training programmes for police officers for which he asked RBI to develop special capsule course.
The Committee also asked the State Finance Department to provide RBI, SEBI links to its official website that cover FAQs about NBFCs for the benefit and information of the general public besides the department was also asked to nominate nodal officers under the J&K Protection of Interests of Depositors (in Financial Establishments) Act- 2012.
The Committee also reviewed the action taken in cases against certain delinquent entities, referred to the Crime Branch by RBI.
It suggested Registrar of Companies (RoC) that before granting any registration to a new company, in addition to checking the antecedents of the Company/ Directors through a practising professional, who gives a certificate inter-alia stating that he has personally visited the company office, the antecedents of the company/Directors may also be got checked /verified through Police Department.
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