RBI starts scrutiny of companies suspected of illegal money raising: Media Report

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As part of its efforts to protect gullible investors from fraudulent investment schemes, the Reserve Bank has started scrutinising credentials of companies suspected of illegally raising money from public as NBFCs.

The central bank's action follows the Corporate Affairs Ministry sending a list of more than 34,700 firms that came under its scanner for allegedly pooling money as non-bank finance companies (NBFCs).

According to the sources, the Reserve Bank of India (RBI) has begun analysing details of entities, which are believed to have raised money from the public illegally without getting registered as NBFCs.

The cases are being pursued after reference from the Corporate Affairs Ministry to probe 34,754 companies (other than those registered with RBI). NBFCs are regulated by the RBI.

Sources said all the entities, which are under the scanner, would be provided an opportunity to clarify their position, before taking action, said the media report.

Story first published: Monday, July 21, 2014, 11:20 [IST]
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