FSDC meet to mull return of CIS funds

With thousands of crores of investor money seized from illegal collective investment schemes (CIS) now under the custody of various investigative agencies, a finance ministry panel is meeting on Thursday to find ways to return the same to the original investors Indian stock market astrology prediction

The Financial Stability and Development Council (FSDC), the inter-regulatory body under the ministry of finance and headed by the finance minister, will meet in Delhi to discuss how money seized by agencies like Enforcement Directorate (ED), CBI, economic offence wings (EOWs) of state police forces from illegal CIS companies like Pearl Agro in Punjab and Saradha in West Bengal could be distributed to those affected by the CIS scams, officials with regulatory agencies said. 

In the last three years market regulator Sebi has passed nearly 200 orders against companies involved in illegal CIS and has also asked the companies to return those funds to investors. Most of these affected investors are from the rural and semi-urban areas of the country Stock Market Trading Tips

In case of Saradha scam in WB, under a Supreme Court directive, CBI is investigating the case in which a conglomerate of about 200 companies of the Saradha group believed to have raised between Rs 20,000 crore and Rs 30,000 crore for gullible investors. Part of Saradha's assets were attached by ED, which was probing money laundering while Sebi, which acted against the group for illegal fund raising from investors under CIS, also attached some properties. Some of the properties attached by Sebi and ED are common and hence there is a tussle between the two arms of the government. 

In case of PACL, the SC has ordered auction of the group's assets which had collected nearly Rs 50,000 crore from 5.85 crore investors through CIS. In April the SC asked a committee of retired high court judges, assisted by Sebi and CBI to auction PACL's assets and pay back investors. The process is yet to begin. FSDC is scheduled to discuss many such issues where investors are yet to be paid back the money they had invested over several years, and try to find ways to pay them back, a source said Indian stock market astrology prediction