"The committee will meet at regular intervals in order to curb the activities of unauthorised agencies and unincorporated bodies which lure gullible depositors by offering various types of schemes," an RBI release issued in Mumbai said.

The release was issued after Tuesday's high-level meeting which was attended by officials from the Economic Offences Wing (Mumbai), Central Bureau of Investigations (CBI), Company Law Board, Sebi, Registrar of Companies and the Commissioners of Police (Thane and New Mumbai). During the meeting, RBI sought the help of other regulatory agencies and Maharashtra government to protect the investors from unauthorised agencies.

"As such entities are spread even in the remote parts of the state, the official machinery could play a greater role in effectively controlling them," said RBI deputy governor, SP Talwar at a meeting organised by the apex bank to share the expectations of the regulatory framework introduced in January 1997.

The deputy governor also explained the steps initiated by the RBI to consolidate the companies which have already been registered, and the steps taken in respect of the companies which are financially weak and defaulting in their obligations. He also suggested improving market intelligence and sharing the information with other agencies so that there is proper coordination and effective follow-up wherever required.

The officials also agreed to hold similar high level meetings of all regulators to improve the quality of supervision over entities engaged in NBFC business through public deposit.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.