As per a common view within the Inter-ministerial Group (IMG), penalties on the companies involved in running fraudulent schemes should be significantly increased, said the media reports.
"The unanimous view within the group is that state and central government should take proactive action against these fraudulent schemes and there should be more investment awareness campaign," a government official told media.
The IMG has recently been set up the government after West Bengal-based Saradha Group scam. The group was not registered with RBI under deposit taking Non-Banking Financial Companies (NBFCs-D) or Residuary Non-Banking Companies (RNBCs). Moreover, it was not even registered in the corporate affairs ministry data base as a chit fund company, which made it difficult for the government to effectively oversee the group.
The IMG has been assigned with the responsibility to strengthen the current coordination mechanisms for regulation and supervision of financial sector. The government is also looking at strengthening the existing regulatory framework via amendments and clarifications to remove the ambiguity in the over sight of multi-level marketing companies and ponzi schemes.
Besides, the IMG has also opined that market regulator SEBI and RBI should be given quasi-judicial power with respect to these ponzi schemes, the report added.