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SEBI has transferred about 20 senior officers from Mumbai to Kolkata. The transfers have been carried out in a bid to investigate the illegal collective investment schemes more effectively in the State.
West Bengal has been a major hub of money pooling activities, which is banned by SEBI. In the last four months, SEBI has passed orders against 92 companies that have raised about ₹2,012 crore through issue of securities such as debentures and preference shares without complying with the regulatory norms.
Incidentally, of the 92 companies against which action were taken 40 are based in West Bengal and these companies raised about ₹500 crore. The total money raised by companies through the Collective Investment Schemes and unauthorised deemed public issues could be much higher, as the market regulator is now relying mostly on self disclosures by companies. A large number of the schemes were under the pretext of real estate business.
The Kolkata-based All India Small Depositors’ Association has filed cases against 114 tainted firms for raising money through ponzi schemes.
Last month, SEBI banned Kolkata-headquartered ICore E Services from raising funds through issuance of securities and restricted the company and its directors from tapping the capital markets.
Forms commodity cell
As part of the process to merge FMC with itself, SEBI has formed a commodity cell with senior officers to coordinate and facilitate smooth transition.
According to sources, the commodity cell may include Shashikumar V, General Manager and BJ Dilip, Deputy General Manager.
The government has already formed a committee with representation from both the regulators and the Ministry. The panel is headed by Ajay Tyagi, Additional Secretary, Finance Ministry. Last week, Ramesh Abhishek, Chairman, Forward Markets Commission addressed senior SEBI officials on the nitty-gritty of regulating the commodities market.
Finance Minister Arun Jaitley had proposed to merge FMC with SEBI in the Budget for more effective regulation of the commodity market.
The process of merger will gather pace with Parliament approving the Finance Bill in the ongoing second Budget session, said sources.
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