Govt taking measures to check companies running fraudulent investment schemes: Sachin Pilot

The government, which is looking to fast-track reforms as growth slows down, has prescribed for strict enforcement of rules and regulations in the new companies bill to crack down on companies operating fraudulent investment schemes, said corporate affairs minister, Sachin Pilot said at an ASSOCHAM event.

"The idea is to make sure any company raising money illegally is not allowed to do so and any company doing collective investment schemes under the garb of some other operation should be prohibited," said Pilot.

Pilot also said that Sebi has now been given more powers and whatever is required to check such so-called Ponzi schemes and take swift actions against them.

"The ministry of corporate affairs is fully supporting efforts of SEBI to make sure that we have a regulatory environment where compliance is necessary and people are not duped of their hard earned money," said Pilot.

Meanwhile, he expressed hopes that Companies Bill will be passed in the monsoon session of the parliament.

Story first published: Friday, July 19, 2013, 9:21 [IST]
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